LION enters MOU to supply Graphite to Swiss-EMX
908 – 510 Burrard Street
Vancouver, B.C. V6C 3A8
LION enters MOU to supply Graphite to Swiss-EMX
LION: CSE GBBGF: OTCQB 0TD. F
Vancouver, British Columbia, Canada (Feb 14, 2019) – Global Li-Ion Graphite Corp. (“Global
Li-Ion” or, the “Company”) (CSE: LION) is pleased to announce it has signed a MOU with
Swiss EMX, a Private Swiss Company, to enter into an offtake agreement to supply Graphite
from the Ambato -Arana graphite project in Madagascar (the “ Malagasy Project ”). The MOU
contemplates LION supplying 10,000 tonnes within the first three years of a definitive offtake
agreement being signed and an additional 10,000 tonnes within five years. The MOU lays out
the framework for the proposed offtake schedule, which is as follows:
- Year one: 2,000 tonnes;
- Year two: 3,000 tonnes; and
- Year three: 5,000 tonnes.
Upon completion of year three, Swiss EMX will have an option to extend the Offtake Agreement
for an additional two years to purchase an additional 10,000 tonnes of graphite . Swiss EMX’s
product purchase rights are subject to a maximum such that the orders may not cumulatively
exceed 50% of the net total Malagasy Project production of graphite on a yearly basis. The
Company product must also be compliant with the product quality of flake graphite of at least or
better than a minimum 90 pct carbon content and at least or larger than +80 Mesh flake size.
The MOU contemplates the following prices:
a) for the first 5,000 tonnes, the greater of US$600/tonne or the amount calculated using a
35% discount to the previous month’s price for Flake Graphite, 90 -93 pct C, +80 Mesh
FOB China as published by Benchmark Minerals Intelligence Ltd . (the “ Benchmark
Price”);
b) for the second 5,000 tonnes, the greater of $600/tonne or the amount calculated using a
25% discount to the Benchmark Price; and
c) should Swiss EMX exercise the Option, additional graphite may be purchased at a 15%
discount to the Benchmark Price, with delivery terms to be determined at the time of the
option.
Swiss EMX will make a good faith payment against the supply of graphite of $250,000 USD
upon signing of the definitive offtake agreement.
Ambato-Arana Graphite Mine, Madagascar
The Company continues to make very significant progress in its understanding and knowledge
of the past producing Ambato-Arana Graphite Project in Madagascar. The Company completed
the purchase and transfer of a 100% interest in the Ambato Project and is focused on working
with Pascal Marchand M.Sc. P . Geol to complete the updated environmental study and prepare
the detailed license development plan which is needed to put the project back into economic
production. The Company has acquired and verified a substantial amount of historical data
including recently recovered historic data on over 400 auger drill holes on the project that
indicates the presence of substantial graphite mineralization, which will be instrumental in the
implementation of the upcoming confirmation work program and mine plan completion.
Pascal is a Franco-Canadian geologist based in Madagascar with over 25 year’s highly relevant
experience including the exploration and appraisal of mineralisation of graphite. He is a member
of the Ordre des Géologues du Québec. Mr. Marchand holds degrees in geology including
MSc’s from Laval University and from the University of Nancy and a BSc from the University of
Besançon. He has worked throughout Madagascar and, in addition to geological expertise, is
fully conversant with Malagasy mining law, and environmental and social regulations.
About Swiss-EMX
Swiss EMX is pioneering the tokenization of the energy metals using a three -stage approach.
Firstly, by offering commodity backed tokens followed by secondary trading of the tokens on
regulated exchanges, which allows for speculation and liquidity in otherwise illiquid commodities
and finally by offering delivery of the physical under lying commodity via smart contracts using
blockchain technology.
Further information about Global Li -Ion is available under its profile on the SEDAR website ,
www.sedar.com, on the CSE website , www.thecse.com, and the Company’s website ,
www.globalli-iongraphite.com.
For Further information about the Company, please contact:
Jason Walsh
Director & Officer
Global Li-Ion Graphite Corp.
Telephone 604.608.6314
Email: [email protected]
Neither the Canadian Securities Exchange nor its regulation services provider have reviewed or
accept responsibility for the adequacy or accuracy of this press release.
Forward-Looking Information:
This press release contains forward -looking statements. The use of any of the words
“anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “intend”, “believe” and similar
expressions are intended to identify forward -looking statements. Forward looking statements in
this release may include, without limitation, the decision of Company and Swiss EMX to sign a
definitive offtake agreement , project econ omics, permitting, the development timeline, the
Company’s objective to produce graphite. Although the Company believes that the expectations
and assumptions on which the forward -looking statements are based are reasonable, undue
reliance should not be pla ced on the forward -looking statements because the Company can
give no assurance that they will prove to be correct.
Since forward -looking statements address future events and conditions, by their very nature
they involve inherent risks and uncertainties. Such factors include, among other things, the
interpretation and actual results of current exploration activities; changes in project parameters
as plans continue to be refined; future prices of graphite; possible variations in grade or
recovery rates; fa ilure of equipment or processes to operate as anticipated; the failure of
contracted parties to perform; labor disputes and other risks of the mining industry; delays in
obtaining governmental approvals or financing or in the completion of exploration, as well as
those factors disclosed in the Company's publicly filed documents. These statements speak
only as of the date of this press release. Actual results could differ materially from those
currently anticipated due to a number of factors and risks discus sed in the Company's
Management's Discussion and Analysis under the Company's profile on www.sedar.com. While
the Company may elect to, it does not undertake to update this information at any particular
time.