Northern Graphite Signs Option to Acquire Mousseau West Graphite Project
Northern Graphite Signs Option to Acquire
Mousseau West Graphite Project
Ottawa, Ontario--(Newsfile Corp. - February 23, 2022) - Northern Graphite Corporation
(TSXV: NGC)
(OTC Pink: NGPHF) (FSE: 0NG) (XSTU: 0NG)
(the "
Company
" or "
Northern
") is pleased to
announce that it has entered into an agreement (the "Option Agreement") that provides it with the option
to acquire a 100% interest in the Mousseau West Graphite project ("Mousseau West" or the "Property"),
subject to the owners retaining a 2% net smelter royalty ("NSR").
The Property is located approximately
80 kms, and in economic trucking distance, from the producing Lac-des-Iles ("LDI") graphite mine in
Quebec.
On December 2, 2021 Northern announced that it had entered into binding purchase
agreements to acquire LDI and a graphite deposit/ processing plant in Namibia from subsidiaries of
Imerys SA (the "Imerys Transaction").
See press release here
.
Pursuant to the Option Agreement, Northern has agreed to pay $50,000 for the six-month exclusive right
to conduct due diligence on the Property.
If the Company elects to exercise its option, it can acquire
Mousseau West through the payment of $500,000 in cash and the issuance of 900,000 common shares
of the Company, subject to the acceptance of the TSX Venture Exchange ("TSX-V").
Northern will also
have the right to acquire the 2% NSR from the owners at any time upon the payment of $1 million.
A technical report entitled, "Technical Report and Resources Estimate of the Mousseau West Property"
dated September 24, 2013 (the "Report") was completed by Alain Tremblay, geol. eng. and Yvan
Bussières, geol. eng. in accordance with the requirements of National Instrument 43-101,
Standards of
Disclosure for Mineral Projects
("NI 43-101").
It was filed on SEDAR on October 17, 2013 and is
available under the profile of NanoXplore Inc.
From 1996 to 2008, Alain Tremblay was in charge of
exploration at the LDI mine and is well-acquainted with the geology and mining of graphite mineralization
in the area.
The Report states that the nature of mineralization at Mousseau West is similar to LDI which
"indicates high confidence in the possibility of mining, milling and concentrating it into a final graphite
product suitable for customers."
Gregory Bowes, CEO commented that, "The Company's main priority when the Imerys Transaction
closes is to extend the mine life at LDI, increase production back to its nameplate capacity of 25,000tpy
and solidify its position as the only producing graphite mine in North America.
The Mousseau West
deposit not only provides an attractive option for meeting these objectives, it also has the potential to
become a significant project in its own right."
He added "the world requires significantly more graphite
production to support the evolution to electric vehicles and Northern believes that high-quality deposits
located close to infrastructure in politically stable jurisdictions will become very valuable commodities."
Mousseau West consists of 12 claims totalling 489 hectares in size.
It is located approximately 150 kms
north of Montreal in the Mont-Laurier area and can be accessed from Highway 117 over 12 kms of good
quality logging roads.
Over 7,500 meters of drilling has been carried out on the Property and the Report
estimates that it contains an Inferred Resource of 4.1 million tonnes grading 6.2% graphitic carbon
("Cg").
The resource includes 2.7 million tonnes that have been drilled on 25 meter centers which the
Report states "are considered to have reached a high level of definition and do not need additional
work."
In 1990 Derry, Michener, Booth & Wahl ("DMBW") estimated Probable Reserves of 1.7 million
tonnes grading 7.2% Cg and Possible Reserves of 0.7 million tonnes grading 7.8% Cg.
The Company is classifying both the Inferred Resources contained in the Report and the Reserves
calculated by DMBW as historical estimates as the Company's Qualified Person (as defined by NI 43
101) has not performed sufficient work to classify them as either current mineral resources or mineral
reserves.
However, the Company considers the data to be relevant as it is indicative of potential
mineralization on the Property. The Company is not aware of any more recent resource estimates.
The Mousseau West deposit outcrops at surface and the Report indicates that the morphology of the
deposit is potentially very suitable for open pit mining, with a low waste-to-ore stripping ratio.
Also,
zonation in the deposit allows access to richer mineralization first.
The deposit is 250 metres long and
lies at the western end of an EM conductor that extends another 400 meters east to the property
boundary.
This area represents a prime exploration target with the potential to expand the size of the
deposit.
Other conductors also exist on the Property and represent additional exploration targets.
The
graphite is mainly hosted by calcitic marbles which provide buffering capacity for the low level of
sulphides.
Like LDI, this likely indicates that any tailings would be non-acid generating.
Update on the Imerys Transaction
Closing of the Imerys Transaction is subject to a number of conditions, including acceptance of the TSX-
V and completion of US$55 million in related equity/stream/royalty/debt financings.
The first tranche of
the equity financing has closed and the Company anticipates that the royalty/stream/debt financing and
the Imerys Transaction will close within two weeks.
About Northern Graphite
Northern Graphite is a Canadian company, listed on the TSX Venture Exchange and focused on
becoming a world leading producer of natural graphite and upgraded, high value products critical to the
green energy revolution including anode material for lithium-ion batteries/EVs, fuel cells and graphene,
as well as advanced industrial technologies.
Completion of the Transaction will enable Northern to become the only North American and the world's
third largest graphite producing company outside of China.
Northern will also own two large scale
development projects that have high quality flake graphite and are located close to infrastructure in
politically stable jurisdictions.
These projects will enable the Company to significantly expand production
to meet rapidly growing demand from the EV/battery markets.
Qualified Person
Gregory Bowes, B.Sc. MBA P.Geo
is a "qualified person" as defined under NI 43-101 and has reviewed
and approved the content of this news release including data disclosed with respect to the Mousseau
West Property.
For additional information
Please visit the Company's website at
http://www.northerngraphite.com/investors/presentation/
, the
Company's profile on
www.sedar.com
, our
Social Channels
listed below or
contact the Company at
(613) 241-9959.
YouTube
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, but not limited to,
statements regarding the Company's plans with respect to due diligence and the potential acquisition
of the Property, future production from LDI, its intentions to complete the Imerys Transaction and
related financings, the Company's market position post-Transaction and the future demand for
graphite. 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/114570