OTTAWA, Nov. 02, 2017 (GLOBE NEWSWIRE) -- Northern Graphite Corporation (“Northern” or the “Company”) (TSX-V:NGC) (OTCQX:NGPHF) announces that it plans to complete a non-brokered private placement of 3.33 million units at a price of $0.45 per unit for gross proceeds of $1.5 million. Each unit will consist of one common share and one half of one common share purchase warrant with each full warrant entitling the holder to purchase one common share at a price of $0.60 per share for a period of two years. The securities to be issued will be subject to a four month hold period from the date of closing and the placement is subject to approval by the TSX Venture Exchange. It is anticipated that the net proceeds of the placement will be used to:
Finalize operational permitting for the Bissett Creek graphite project;
Update the bankable feasibility study for the project to reflect a substantial decline in the CDN/US exchange rate, lower oil prices and more competitive equipment pricing, and to integrate some capital cost reduction modifications into the flow sheet;
Conduct a pilot plant test of the Company’s proprietary purification process which has the potential to provide a substantial competitive advantage in the manufacture of anode material for lithium ion batteries; and
Working capital and general corporate purposes.
Finders’ fees will be payable on part of the placement and consist of 6.5% in cash, and warrants equal to 6.5% of the units issued with each warrant exercisable to acquire one common share at a price of $0.60 for a period of one year.
This press release is for informational purposes only and shall not be constituted as an offer to sell or the solicitation of an offer to buy the units nor shall there be any sale of the units in any jurisdiction in which such sale would be unlawful.
About Northern Graphite
Northern Graphite is a Canadian company that has a 100% interest in the Bissett Creek graphite deposit located in southern Canada, relatively close to all required infrastructure. Bissett Creek is an advanced stage project that has a Full Feasibility Study and its major environmental permit. Subject to the completion of operational and species at risk permitting, which are well advanced, Northern could commence construction in 2018 pending financing. The Company believes Bissett Creek has the highest margin, best flake size distribution and lowest marketing risk of any new graphite project, and has the added advantages of low capital costs and realistic production levels relative to the size of the market.
Gregory Bowes, B.Sc. MBA, P. Geo., a Qualified Person as defined under NI 43-101, has reviewed and is responsible for the technical information in this press release.
This press release contains forward-looking statements, which can be identified by the use of statements that include words such as "could", "potential", "believe", "expect", "anticipate", "intend", "plan", "likely", "will" or other similar words or phrases. These statements are only current predictions and are subject to known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from those anticipated by the forward-looking statements. The Company does not intend, and does not assume any obligation, to update forward-looking statements, whether as a result of new information, future events or otherwise, unless otherwise required by applicable securities laws. Readers should not place undue reliance on forward-looking statements.
Neither 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.
Northern Graphite share price is continuing to rise on huge volumes both in the U.S. and Canada. The Oxford Club apparently recommended it in their resource newsletter the weekend before last. At least three other U.S.-based articles have appeared since. Here's another:
Northern is the best of the bunch IMO and is up almost 100% in three trading days. Price and volume increase started in the U.S. last Friday afternoon but Canada did almost 3 million shares of volume today compared with just over 1.3 million stateside. 2016 was the year for lithium. 2017 was the year for cobalt. Will 2018 be the year for graphite? Seems like many are betting that this will be the case.
NORTHERN GRAPHITE IMPROVES YIELD OF LARGE FLAKE GRAPHITE
Northern Graphite Corp. has released the results of additional metallurgical test work carried out on ore from the Bissett Creek deposit by BGRIMM, a Chinese state-owned metallurgical research and development company. BGRIMM confirmed the high recoveries and high purities used in the Feasibility Study ("FS") and successfully increased the percentage of high value, +50 mesh XL flake in the final concentrate from 48 to 61 per cent.
Gregory Bowes, CEO commented that: "We believe Bissett Creek has the best flake size distribution of any graphite project which will result in concentrate prices that are more than 60 per cent higher than for the "average" project, and we will not have the fines problem that characterizes almost every graphite deposit." He added that "XL flake markets are growing rapidly while Chinese production of XL flake is declining which creates an excellent opportunity for the Bissett Creek Project."