Northern Graphite Completes Additional Royalty Financing on Bissett Creek Project
Northern Graphite Completes Additional
Royalty Financing on Bissett Creek Project
Ottawa, Ontario--(Newsfile Corp. - September 27, 2023) - Northern Graphite Corporation
(TSXV: NGC)
(OTCQB: NGPHF) (FSE: 0NG) (XSTU: 0NG)
(the "
Company
" or "
Northern
")
announces that it has
sold an additional 0.5% gross revenue royalty ("
GRR
") on its Bissett Creek Project to Electric Royalties
Ltd. ("
ELEC
") for cash consideration of CAD $950,000. ELEC had previously purchased a 1.0% GRR
from the Company in 2020 such that it now holds a total 1.5% GRR on the Bissett Creek Project.
In connection with the sale of the additional GRR, Northern and ELEC have entered into an amended
and restated royalty agreement governing ELEC's GRR on the Bissett Creek Project. Pursuant to the
terms of the amended agreement, in addition to the GRR on future production, Northern will make a
separate fixed royalty payment to ELEC in the total amount of CAD $200,000, payable in eight quarterly
payments of $25,000 for the next two years.
"The sale of this additional Bissett Creek royalty is one of a number of initiatives the Company is
pursuing to raise financing for our development programs in a non-dilutive manner during very
challenging market conditions," said Northern Chief Executive Officer Hugues Jacquemin. "We are very
pleased with the continued support of ELEC as we move steadily forward toward our goal of becoming a
fully integrated, mine-to-battery producer of natural graphite supplying North America's EV revolution and
the widescale energy transition," he added.
Brendan Yurik, CEO of Electric Royalties, stated, "The Bissett Creek Project stands out from its North
American counterparts because it possesses a high proportion of large/XL flake, making it well-suited
for lucrative markets such as micronized graphite, expandable graphite, and high-purity flake graphite,
which command premium prices. Additionally, project operator Northern Graphite is working hard to
establish the capability to manufacture anode material for the rapidly growing lithium-ion battery market,
primarily driven by the surge in electric vehicles. In contrast to many other graphite deposits, virtually all
production from Bissett Creek will meet the standards for 'battery grade'."
The Bissett Creek project is located between North Bay and Ottawa, Ontario and is 15 kilometres from
the Trans-Canada highway.
It has ready access to labor, supplies and natural gas and is five hours from
the port of Montreal. It has one of the highest percentages of large/XL flake in the industry, which is
particularly important to the hydrogen economy as it is used in the bipolar plates in fuel cells.
First-phase
production is projected at 44,000 tonnes per year ("
tpy
") of graphite concentrate and permitting is well-
advanced. The Company intends to undertake a Preliminary Economic Assessment to assess
expanding production in a second phase.
Graphite from Bissett Creek, together with the Company's Lac des Iles mine in Quebec, will supply
Northern's planned 200,000-tpy Battery Anode Material plant in Baie-Comeau, Quebec, which is
contemplated to enter first-phase production in 2026.
About Northern Graphite
Northern is a Canadian, TSX Venture Exchange listed company that is focused on becoming a world
leader in producing natural graphite and upgrading it into high value products critical to the green
economy, including anode material for lithium-ion batteries/EVs, fuel cells and graphene, as well as
advanced industrial technologies.
Northern is the only significant graphite producing company in North America and will become the third
largest producer outside of China when its Namibian operations come back online. The Company
operates the Lac des Iles mine in Quebec and has two large scale development projects, Bissett Creek
in Ontario, and Okanjande in Namibia, which is due to restart operations in 2024 subject to financing.
All
projects have "battery quality" graphite and are located close to infrastructure in politically stable
jurisdictions.
For media inquiries, contact
Pav Jordan, VP of Communications
Email:
For further information contact
Guillaume Jacq, CFO
Telephone: (613) 271-2124
Email:
Qualified Person
Gregory Bowes, B.Sc. MBA P.Geo, the Chairman of Northern, is a "qualified person" as defined under
National Instrument 43-101 and has reviewed and approved the content of this news release.
For additional information
Please visit the Company's website at
http://www.northerngraphite.com/investors/presentation/
, the
Company's profile on
www.sedarplus.ca
our
Social Channels
listed below or
contact the Company at
(613) 271-2124.
YouTube
Cautionary Note Regarding Forward-Looking Statements
This news release contains certain "forward-looking statements" within the meaning of applicable
Canadian securities laws. Forward- looking statements and information are frequently characterized
by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "potential",
"possible" and other similar words, or statements that certain events or conditions "may", "will",
"could", or "should" occur. Forward-looking statements in this release include statements regarding,
among others, the Company's obligations with respect to the GRR and its intentions to advance its
development projects to production and develop the capacity to manufacture value added products.
All such forward-looking statements are based on assumptions and analyses made by management
based on their experience and perception of historical trends, current conditions and expected future
developments, as well as other factors they believe are appropriate in the circumstances. However,
these statements are subject to a variety of risks and uncertainties and other factors that could cause
actual events or results to differ materially from those projected including, but not limited to
unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the
failure of other parties to perform as agreed; social or labour unrest; changes in commodity prices;
unexpected failure or inadequacy of infrastructure and the failure of ongoing and contemplated
studies to deliver anticipated results or results that would justify and support continued studies,
development or operations. Readers are cautioned not to place undue reliance on forward-looking
information or statements.
Although the forward-looking statements contained in this news release are based on what
management believes are reasonable assumptions, the Company cannot assure investors that
actual results will be consistent with them. These forward-looking statements are made as of the date
of this news release and are expressly qualified in their entirety by this cautionary statement. Subject
to applicable securities laws, the Company does not assume any obligation to update or revise the
forward-looking statements contained herein to reflect events or circumstances occurring after the
date of this news release.
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.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/182040