Leading Edge Materials Provides Update on Strategic Review
Leading Edge Materials Provides Update on
Strategic Review
VANCOUVER
,
March 4, 2019
/CNW/ -
Leading Edge Materials Corp.
("
Leading Edge Materials
"
or the
"Company
") (
TSXV: LEM
) (
OTCQB: LEMIF
) (
Nasdaq First North: LEMSE
) is pleased to
provide an update on the progress of the internal corporate strategic review (the "
Strategic
Review
") announced 7
th
January 2019. The review is being led by Company Chairman Mr.
Michael
Hudson
and Mr.
Filip Kozlowski
, an Independent Director, and was initiated to identify, examine and
consider opportunities across its portfolio of individual assets to enhance shareholder value.
Leading Edge Materials is advancing a portfolio of European battery raw material projects including
the fully built and permitted Woxna graphite mine in
Sweden
("
Woxna
"), the Bihor Sud cobalt-
copper-nickel project in
Romania
, and the Norra Kärr heavy rare earth element-zirconium-hafnium
deposit, of which are all high merit projects within the European raw material sector.
As a first step, the Strategic Review highlighted that the Company's combination of discovery-stage
and development-stage assets may present different requirements with regard to operational
structure, capital needs and investor preferences.
The Board has resolved that the next stage of the Strategic Review will identify and compare
opportunities for the Woxna graphite mine. Potential recommendations from this stage of the
Strategic Review may include a transition to a freestanding European company, and will consider
direct third-party investment into Woxna, horizontal or vertical joint-venture of with aligned parties, or
a standalone public listing of Woxna on a Swedish exchange.
The Board emphasizes that any recommendation is predicated on Leading Edge Materials continuing
to hold significant exposure to the success of the Woxna graphite mine as a future anode supplier,
while enabling the Company to allocate resources to progress discovery at other projects within the
portfolio and therefore maximize value for shareholders.
The merits of Woxna include:
A fully constructed mine, with all operating equipment, infrastructure and waste management in
place to produce 10,000 tonnes of flake graphite per year with operating permits until 2041;
Substantial sunk capital such that further capital investments to achieve commercial volume of
high purity anode production are forecast to be relatively modest;
Potential to be a first mover in the supply of European sustainably-sourced ultra-high purity
natural graphite anode for lithium ion batteries. Recent research (see press release dated 18
th
January 2019
) undertaken by the Company has provided the data required for installation of a
purification and spheronisation demonstration plant on the Woxna mine site; and
The opportunity for Woxna graphite to be use as a feed material for graphene production, and
as a supplier to other high value applications.
The Board restates that there is no fixed timeline for the Strategic Review and that the Company will
disclose developments with respect to the review process if a potential transaction is identified
and/or further disclosure is required. The Board cautions that there is no assurance or guarantee
that any potential transaction identified by the Strategic Review will be pursued.
Mr.
Mark Saxon
, Interim CEO Company stated, "
The Woxna graphite mine is a unique project in
the sector, with the capacity to be both a near-term and long-term supplier of European natural
graphite anode, and other high value graphite products including graphene, to European
customers. Woxna has consistently attracted significant interest, with a high European industrial
awareness of potential products and regular inquiries around current status. The Strategy Review
is seeking mechanisms to accelerate the transition of the mine from the production of flotation
concentrate only, to the production of high-purity anode, which should be beneficial to both
Leading Edge Material shareholders and emerging European lithium ion battery customers.
"
On behalf of the Board of Directors,
Leading Edge Materials Corp.
Mr.
Mark Saxon
, Interim CEO
About Leading Edge Materials
Leading Edge Materials is a Canadian public company focused on production of high value critical
raw materials for the European market, with an operating base in the Nordic region, a region well
recognized for its promotion and investment in innovation. LEM's flagship asset is the Woxna
Graphite production facility located in central
Sweden
targeting the supply of specialty materials for
lithium ion battery production. LEM's assets and research focus are towards the raw materials for
Li-ion batteries (graphite, lithium, cobalt); materials for high thermal efficiency building products
(graphite, silica, nepheline); and materials that improve the efficiency of energy generation
(dysprosium, neodymium, hafnium). Investments are linked to the global shift to low-carbon energy
generation and energy storage. Leading Edge Materials currently operate in four divisions, Graphite,
Lithium, Rare Earth and Cobalt. Mangold Fondkommission AB is the company's Certified Adviser
("
CA
") as part of the listing requirements for Nasdaq First North.
Additional Information
This information is inside information that Leading Edge Materials Corp. (publ). is obliged to make
public pursuant to the EU Market Abuse Regulation. The information was submitted for publication
through the agency of the contact person set out above, at
4th March 2019
at
1:00 PM
Vancouver
time.
Leading Edge Materials is listed on the TSXV under the symbol "LEM" and Nasdaq First North
Stockholm under the symbol "LEMSE". Mangold Fondkommission AB is the Company's CA on
Nasdaq First North and may be contacted at +46 (0) 8 5030 1550.
Reader Advisory
This news release may contain
statements which constitute "
forward-looking information
",
including statements regarding the plans, intentions, beliefs and
current expectations
of the
Company, its directors, or its officers with respect to the future business activities of the Company.
The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate",
"expect" and similar expressions,
as
they relate to the Company, or its management, are intended
to identify such forward-looking statements. Investors are cautioned that any such forward-looking
statements are not
guarantees of future
business activities and
involve risks
and
uncertainties
,
and
that
the Company's future business activities
may
differ
materially from those
in the forward-
looking
statements
as a result of various factors, including,
but not limited to,
fluctuations in market
prices, successes of the operations of the Company, continued availability of capital and financing
and general economic, market or business
conditions
. There can be no assurances that such
information
will prove accurate and, therefore, readers are advised to rely on their own evaluation
of such uncertainties. The Company does not assume
any obligation to update any forward-looking
information except as required
under the applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of
this news release.
SOURCE
Leading Edge Materials
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For further information:
Please contact the Company at: 1.604.685.9316,
[email protected], www.leadingedgematerials.com
CO: Leading Edge Materials
CNW 16:00e 04-MAR-19