Graphite One Receives Indication for Up to $325 Million Financing from the U.S. Export-Import Bank for U.S.-Based Advanced Graphite Material Supply Chain Project EXIM Letter of Interest is non-binding and indicates potential financing could provide 15 year repayment tenor under EXIM's Make More In A
Graphite One Receives Indication for Up to $325 Million Financing from the
U.S. Export-Import Bank for U.S.-Based Advanced Graphite Material Supply
Chain Project
EXIM Letter of Interest is non-binding and indicates potential financing could provide 15 year repayment tenor under EXIM's Make More In America initiative
and may be eligible for special consideration under the
China
and Transformational Exports Program.
Potential funding supports G1's complete U.S.-based graphite supply chain strategy, with benefits to the national economy and national defense.
EXIM's funding commitment is conditional upon completing the application, due diligence and underwriting process and receiving all required approvals.
VANCOUVER, BC
,
Oct. 18, 2024
/CNW/ - Graphite One Inc. (TSXV: GPH) (OTCQX: GPHOF) ("
Graphite One
" or the "
Company
"), planning a complete
domestic U.S. supply chain for advanced graphite materials, announced today that it received a non-binding Letter of Interest ("
LI
") from the Export-Import Bank
of
the United States
("
EXIM
") for potential debt financing of up to
$325 million
through EXIM's "Make More in America" and "
China
and Transformational Exports
Program" (CTEP) initiatives.
The Letter of Interest states: "We are pleased to extend this Letter of Interest in support of the proposed capital funding plan by Graphite One (
Alaska
) Inc. for
the AAM Manufacturing Facility. Based on the preliminary information submitted regarding expected U.S. exports and U.S. jobs supported by this project, EXIM
may be able to consider potential financing of up to
$325 million
of the project's costs with a repayment tenor of 15 years under EXIM's Make More in America
initiative."
"Today's announcement confirms Graphite One's focus on developing a 100% U.S.-based advanced graphite materials supply chain," said
Anthony Huston
,
President and CEO of Graphite One. "EXIM's potential financing, following on G1's two Department of Defense grants under the Defense Production Act and
from the Defense Logistics Agency, underscores the urgent need to bring U.S. graphite supply into production, and end the nation's 100% foreign dependency."
Given
China's
dominance over global graphite production, the EXIM Letter of Interest indicated the transaction may also be eligible for special consideration under
Section 402 of EXIM's 2019 reauthorization (P.L. 116-94), which directs EXIM to take steps to mitigate the competitive impact of export support provided by
the
People's Republic of China
and other covered countries for opportunities such as this one under EXIM's
CTEP initiative
.
G1 expects to submit a formal application to EXIM in 2025. Upon receipt of an application for financing, EXIM will conduct all requisite due diligence necessary to
determine if a Final Commitment may be issued for this transaction. Any Final Commitment will be dependent on meeting EXIM's underwriting criteria,
authorization process, finalization and satisfaction of terms and conditions. All Final Commitments must comply with EXIM policies as well as program, legal and
eligibility requirements.
The Company intends to make a production decision on the Graphite One Project upon completion of its Feasibility Study, expected in Q1 2025. The Feasibility
Study's release has been delayed from
December 2024
to allow time for the review and analysis of additional geotechnical data resulting from the extension of
the summer drilling program.
Graphite One's Supply Chain Strategy
With
the United States
almost 100 per cent import dependent for anode materials, Graphite One is developing a complete U.S.-based, advanced graphite supply
chain solution anchored by the Graphite Creek deposit, recognized by the US Geological Survey as the largest graphite deposit in the U.S. "and among the largest
in the world." The Graphite One Project plan includes an advanced graphite material and battery anode manufacturing plant located in
Warren, Ohio
. The plan
also includes a recycling facility to reclaim graphite and other battery materials, to be co-located at the
Ohio
site, the third link in Graphite One's circular economy
strategy. The building of these facilities remains subject to financing.
About Graphite One Inc.
GRAPHITE ONE INC. continues to develop its Graphite One Project (the "
Project
") to become an American producer of high-grade anode materials on a
commercial scale integrated with a U.S. domestic graphite resource. The Project is proposed as a vertically integrated enterprise to mine, process and
manufacture anode active materials primarily for the lithium
ion electric vehicle battery market. As set forth in the Company's 2022 Pre-Feasibility Study,
graphite mineralization mined from the Company's Graphite Creek Property, situated on the
Seward Peninsula
about 60 kilometers north of
Nome, Alaska
, would
be processed into concentrate at an adjacent processing plant. Natural and artificial graphite anode materials and other value
added graphite products would be
manufactured from the concentrate and other materials at the Company's proposed advanced graphite materials manufacturing facility expected to be located in
Warren
, Ohio.
On Behalf of the Board of Directors
"Anthony Huston" (signed)
On X (Formerly, Twitter) @Graphite One
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
Investors should be aware that the LI is non-binding and conditional, and does not represent a financing commitment. A funding commitment is conditional
upon completing the application, due diligence and underwriting process and receiving all required Project approvals.
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. Any statements that
are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are
often identified by terms such as "may", "should", "anticipate", "will", "intends" "expects" and similar expressions which are intended to identify forward-looking
information or statements.
Forward-Looking Information includes, but is not limited to, disclosure regarding possible events, next steps and courses of action
including the Company's plans to submit a financing application to EXIM; the prospects of successfully securing financing from EXIM on acceptable terms, or at
all.
The Company cautions that all forward-looking statements are inherently uncertain, and that actual performance may be affected by a number of material
factors, assumptions and expectations, many of which are beyond the control of the Company.
Factors that could cause actual results to differ materially from
those in forward-looking statements include market prices, exploitation and exploration successes, continuity of mineralization, uncertainties related to the
ability to obtain necessary permits, licenses and title and delays due to third party opposition, changes in government policies regarding mining and natural
resource exploration and exploitation, and continued availability of capital and financing, and general economic, market or business conditions.
The reader is
cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual
results to differ materially from those predicted as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond
the control of the Company
. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed
in this press release, and the Company undertakes no obligation to update publicly or revise any forward-looking information, except as required by applicable
securities laws. For more information on the Company, investors should review the Company's continuous disclosure filings that are available at
www.sedarplus.ca
.
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For further information:
For more information on Graphite One Inc., please visit the Company's website, www.GraphiteOneInc.com or contact: Anthony Huston,
CEO, President & Director, Tel: (604) 889-4251, Email: [email protected]; Investor Relations Contact, Tel: (604) 684-6730,
CO: Graphite One Inc.
CNW 07:00e 18-OCT-24