Stem 7 Capital Announces First Focus On Brazilian Graphite
NEWS RELEASE
Stem 7 Capital Announces First Focus On Brazilian Graphite
June 12th, 2017 – Vancouver, B.C. - Stem 7 Capital Inc. (“Stem 7” or the “Company”)
(TSXV: STS.H) is pleased to inform shareholders on the Company’s decision that the initial
focus of its Brazil initiative will be on the expanding global graphite industry.
Stem 7’s two newest directors, Eric Allison and Allen Ambrose, both geologists, have extensive
experience in Latin America and, specifically, Brazil with over sixty-five years of combined
project evaluation and development experience. Messrs. Allison and Ambrose are focused on a
specific graphite producing region of Brazil that could yield several potential graphite
opportunities based on further due diligence planned over the coming weeks.
Mr. Allison commented “I am excited that Stem 7’s board agrees that graphite is a strong first
area of concentration for the Company’s recently announced (June 1, 2017) Brazil-focused
strategy. With industry analysts reporting global demand for graphite is expected to increase
significantly over the next five years, the Company is presented with a strong window of
opportunity to review and potentially acquire graphite assets for near term development. Though
not intended as the Company’s sole focus for mining opportunities, the graphite industry is
undeniably an excellent sector to focus on first to maximize shareholder value.”
Some points on the graphite sector for shareholders to consider:
- Graphite has been deemed a critical strategic metal by the U.S. Department of Energy
and critical raw material by the European Union.
- Many analysts expect a major increase in demand for purified spherical graphite for use
in the rapidly-growing Lithium-ion battery (“Li-B”) sector. Corporate giant Panasonic is
forecasting the Li-B sector to grow from US$10 billion to $60 billion by 2025. Each Li-B
contains 20 to 30 times more graphite than lithium.
- Traditional graphite markets (non-Li-B) represent the largest market opportunity for
natural graphite in the medium term. Graphite use in electric arc steel production
(recarburisers), foundries, refractories, lubricants and friction products represents about
86% of current market demand. These markets are projected to grow 5-10% annually.
- China has long been the leader in graphite production; however, Chinese graphite
production has been causing significant pollution problems in China due to poor mining
practices and low environmental standards. Li-B manufacturers and traditional graphite
consumers are working to source graphite from environmentally responsible and
sustainable producers elsewhere in the world.
- Alternative uses for graphite-based materials such as graphene have also seen a steady
increase in demand and are expected to continue to increase steadily over the next ten
years.
Brazil is the world’s third largest producer of graphite with over 80 years of production history.
Graphite deposits in Brazil are typically near surface and saprolitic in nature requiring little or no
drilling and blasting to mine. These characteristics, coupled with simple, proven concentration
methods, result in significant cost advantages. This allows current Brazilian producers to be very
competitive in all segments of the global graphite market. Brazil is also a significant consumer of
graphite products providing the opportunity for lower cost, in-country sales of a wide range of
graphite products.
On behalf of the Board,
Dave McMillan
Chairman & CEO
Ph: +1 (778) 773-4560
Email: [email protected]
For additional information, please contact:
Kris Kottmeier
Ph: +1 (604) 506-2502
Email: [email protected]
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Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.