BSNC will make an initial investment of US$2.0 million in Graphite One, with an option to
invest an additional US$8.4 million,
including the exercise of warrants, fully supporting the
development of Graphite Creek Deposit.
Investment builds on $37.5
million Department of Defense award to Graphite One under
the U.S. Defense Production Act.
Graphite One and BSNC will partner on continued regional
and community development.
VANCOUVER, BC, Sept. 5,
2023 /CNW/ - Graphite One Inc. (TSXV: GPH)
(OTCQX: GPHOF) ("Graphite One", "G1" or the "Company"),
planning a complete domestic U.S. supply chain for advanced
graphite materials, is pleased to announce that it has arranged a
strategic investment from the Bering Straits Native Corporation
("BSNC") for up to US$10.4
million.
This is not just an investment in Graphite One, it is a
long-term investment in our region. We at BSNC have watched for
years as Graphite One has worked to advance the Graphite Creek
project and become a friendly neighbor in the region," said
Dan Graham, BSNC Interim President
and CEO. "Graphite One has told us of its intent to develop an
environmentally responsible project and provide an exciting
economic opportunity for the region that hopefully will play a
crucial role in the nation's transition to a clean energy future.
This is at the heart of our Board's unanimous support of the
project."
"After careful review and many long discussions, we believe
Graphite One shares our values of land stewardship and providing
benefits to the region. Our investment in Graphite One is about
providing opportunities for BSNC shareholders and being proactive
about the future of our region," said BSNC Chair Cindy Massie.
Formed in 1972, BSNC is the regional Alaska Native Corporation
(ANC) for the Bering Strait region, which includes the Seward Peninsula in Western Alaska and the coastal lands
surrounding Norton Sound. The Graphite Creek Project is located on
State and private land in the BSNC region.
"We are grateful for and humbled by BSNC's support. Working
collaboratively, we can make Graphite Creek a project to be modeled
after in Alaska and nationwide,"
said Anthony Huston, President and
CEO of Graphite One. "BSNC is a dynamic development force in
Alaska, with an unwavering
commitment to community and heritage." Huston continued. "All of us
at G1 look forward to partnering with BSNC on ways to make our
project a model not just for Alaska -- but for a nation that is navigating
the transition to a new energy future."
The Graphite One-BSNC agreement follows multiple community
meetings with local residents and Graphite One officials during
2023. To coordinate regional and community development, G1 and BSNC
will establish an advisory board to ensure direct communications of
the Company's activities and development details as well as utilize
the local expertise of BSNC.
The BSNC investment and community development program follows
the July 17, 2023 award to G1's
wholly owned subsidiary, Graphite One (Alaska), Inc., of a Department of Defense
("DoD") Technology Investment Agreement grant of $37.5
million under Title III of the Defense Production Act
("DPA").
Private Placement
The Initial Investment of US$2.0
million is by way of a non-brokered private placement for
2,802,690 units at a price of CA$0.97 per unit. Each unit consists
of one common share and one common share purchase warrant
("Warrants") exercisable at CA$1.21 per share expiring twelve (12)
months from the closing of the private placement. The Company has
received conditional approval for this private placement from the
TSX Venture Exchange. All securities issued in connection with this
private placement will have a restricted period that expires four
months and one day following the date of issuance.
The Company granted BSNC an option to invest a further
US$6.0 million in common shares of
the Company at any time within twelve (12) months closing of the
private placement (the "Option"). If and when the Option and
Warrants are exercised, BSNC would have invested a total of
US$10.4 million in Graphite One,
based on the current exchange rate1.
Net proceeds from the investment will be used to support the
feasibility study, community investment and general corporate
purposes.
DPA Title III $37.5 million grant to Graphite One
The funding objective of the DoD-Graphite One (Alaska) Technology Investment Agreement is to
perform an accelerated Feasibility Study to modernize and expand
domestic production capacity and supply for graphite battery anodes
necessary for electronic vehicles and alternative energy batteries,
as an essential national defense technology item.
The DPA funding allows G1 to accelerate its Feasibility Study
covering its Graphite Creek Project 60 km (35 miles) north of
Nome, Alaska. Graphite Creek was
recently confirmed by the U.S. Geological Survey to be the
country's largest known graphite resource, and "among the largest
in the world2."
__________________________________
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1 1 USD
= 1.36 CAD
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2 Insights
into the metamorphic history and origin of flake graphite
mineralization at the Graphite Creek graphite deposit, Seward
Peninsula, Alaska, USA
|
Graphite One's Supply Chain
Strategy
With the United States
currently 100 per cent import dependent for natural graphite,
Graphite One is planning to develop a complete U.S.-based, advanced
graphite supply chain solution anchored by the Graphite Creek
resource. The Graphite One Project plan includes an advanced
graphite material and battery anode manufacturing plant expected to
be sited in Washington State
integrated with the development of the Graphite Creek Property. The
plan includes a recycling facility to reclaim graphite and the
other battery materials, to be co-located at the Washington State site, the third link in
Graphite One's circular economy strategy.
About Graphite One Inc.
GRAPHITE ONE INC. (TSX‐V: GPH; OTCQX: GPHOF) continues to
develop its Graphite One Project (the "Project") to become an
American producer of high-grade anode materials that is integrated
with a domestic graphite resource. The Project is proposed as a
vertically integrated enterprise to mine, process and manufacture
anode materials primarily for the lithium‐ion electric vehicle
battery market. As set forth in the Company's 2022 Pre-Feasibility
Study, graphite mineralization mined from the Company's Graphite
Creek Property, situated on the Seward
Peninsula about 60 kilometers north of Nome, Alaska, would be processed into
concentrate at an adjacent processing plant. Natural and artificial
graphite anode materials and other value‐added graphite products
would be manufactured from the concentrate and other materials at
the Company's proposed advanced graphite materials manufacturing
facility expected to be located in Washington State. The Company intends to make
a production decision on the Project upon the completion of a
Feasibility Study.
On Behalf of the Board of
Directors
"Anthony Huston" (signed)
For more information on Graphite One Inc., please visit the
Company's website, www.GraphiteOneInc.com.
On Twitter @GraphiteOne
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.
All statements in this release, other than statements of
historical facts, including those related to the timing and
completion of the anticipated Feasibility Study, future production,
establishment of a processing plant and a graphite manufacturing
plant, establishment of a battery materials recycling facility, and
events or developments that the Company intends, expects, plans, or
proposes are forward-looking statements Generally,
forward‐looking information can be identified by the
use of forward‐looking terminology such as
"proposes", "expects", "is expected", "scheduled", "estimates",
"projects", "plans", "is planning", "intends", "assumes",
"believes", "indicates", "to be" or variations of such words and
phrases that state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved". The Company cautions that there is no certainty that
tests of the Company's material will be successful or that such
tests will result in the development of successful products.
Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results or developments may differ materially from those in the
forward-looking statements. Factors that could cause actual results
to differ materially from those in forward-looking statements
include market prices, exploitation and exploration successes,
continuity of mineralization, uncertainties related to the ability
to obtain necessary permits, licenses and title and delays due to
third party opposition, changes in government policies regarding
mining and natural resource exploration and exploitation, and
continued availability of capital and financing, and general
economic, market or business conditions. Readers are cautioned not
to place undue reliance on this forward-looking information, which
is given as of the date it is expressed in this press release, and
the Company undertakes no obligation to update publicly or revise
any forward-looking information, except as required by applicable
securities laws. For more information on the Company, investors
should review the Company's continuous disclosure filings that are
available at www.sedar.com.
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SOURCE Graphite One Inc.