GPHOF - Graphite One 2023 Year in Review | Benzinga

Graphite One Closes Landmark 2023 Debt Free, 
Two U.S. Department of Defense Grants, New Strategic Investor
and U.S. Government Confirmation that Graphite Creek Deposit is "among the largest in the world'

Accelerated Path-to-Production Objectives Set for 2024

VANCOUVER, BC, Jan. 2, 2024 /PRNewswire/ - Graphite One Inc. (TSXV:GPH) (OTCQX:GPHOF) ("Graphite One", the "Company", or "G1") is pleased to provide the Company's 2023 year in review and a look forward to its objectives for 2024. 

• G1 receives first Department of Defence ("DoD") grant, US$37.5 million: After 2022 designation of graphite as a Defense Production Act Title III material, Graphite One awarded US$37.5M DoD grant to accelerate Feasibility Study
• G1 receives second DoD grant, US$4.7 million:  To develop a domestically sourced graphite fire foam suppressant, to meet congressional mandates of replacing legacy suppressants known to be both hazardous to the environment and human health
• Alaska's Bering Straits Native Corporation ("BSNC") makes strategic investment in G1 for up to US$10.4M
• Taiga acquires Net Smelter Production Royalty, makes G1 debt-free heading into 2024
• US Geological Survey confirms Graphite Creek as the largest flake graphite deposit in the U.S. and "among the largest in the world"
• Production of sample materials of Alaska natural graphite and synthetic graphite for testing by a U.S. National Lab and EV end-users
• Accelerated Drilling Program:  DoD grant enables 2023 drilling program four times larger than in 2022; 52 of 52 resource holes intercept graphite
• Graphite One's production is expected to qualify under the Inflation Reduction Act ("IRA") tax credits in both categories, based on U.S. Treasury/Department of Energy guidance and received strong support from Alaska elected officials

"2023 was a year of major milestones for Graphite One," said Anthony Huston, Graphite One's President and CEO. "We were awarded two Department of Defense grants, the USGS once again validated the significance of the Graphite Creek deposit, and we welcomed a strategic investment from Alaska's Bering Straits Native Corporation, approved unanimously by BSNC's Board.  We also quadrupled this year's drilling program year-over-year, made possible by the DoD grant.  52 of 52 holes drilled in the summer program intercepted graphite, proving the excellent continuity of near surface, flat lying graphite mineralization.  We commenced delivering samples of both natural and synthetic graphite, materials essential to EV battery anodes, to potential end-users and a U.S. National Lab for further development of end products.  And with the sale of the NSR and the continued support from Taiga, G1 is debt free heading into 2024."

"It is a testament to our strategic plans and talented G1 team and Board aiming to fill the lack of battery grade graphite material in the United States." 

Mr. Huston continued "We have incredible momentum and believe we are very well positioned to accelerate our path-to-production schedule."

Early-stage Commercial Synthetic Graphite Production.  Subject to financing and permitting requirements, Graphite One enters 2024 planning an early-stage commercial facility to complete a finishing and coating line for synthetic graphite by late 2025, with Phase 1 production of 25,000 tonnes of synthetic anode material by mid-2026 and production growth from then on as market demand requires.

1Q 2024:  Submission of DoE Proposal for Early-Stage Commercial Synthetic Graphite Anode Facility.  G1 intends to submit a proposal to the U.S. Department of Energy ("DoE") seeking a grant for a precursor development plant and an early-stage commercial synthetic graphite anode facility.

"Management currently anticipates construction and commissioning costs are estimated at US$430 million subject to any unforeseen delays or varied market conditions," said Mr. Huston.  "This is planned to be a direct path to revenue, even as we continue to develop our Graphite Creek natural graphite deposit."

1Q 2024:  Site Selection for the Graphite Anode Material Production Facility.  The site will be in the contiguous United States, in keeping with G1's complete U.S.-based supply chain strategy. 

1Q 2024:  Completion of Graphite One/Sunrise TLA.  The Technology License Agreement with Sunrise (Guizhou) New Energy Material Co. Ltd. ("Sunrise") (the "TLA") to license technology to be used in a planned graphite anode material production facility and is intended to comport with the U.S. Treasury/Department of Energy federal tax credit guidance.  

4Q 2024:  Completion of Feasibility Study.  With DoD Defense Production Act funding, G1 remains on track to complete the Feasibility Study ("FS") in Q4 2024, a full year ahead of the Company's initial schedule. 

The Company reported progress in 2023 on the following fronts:

In July 2023, after the 2022 Presidential Determination designating graphite as a Defense Production Act Title III material "essential to the national defense," Graphite One was awarded a US$37.5 million grant from the Department of Defense to accelerate the Company's Feasibility Study, cutting completion time for the FS by a full year to Q4 2024. The drawdown of the grant is contingent upon the Company's obligation to raise an equivalent dollar-for-dollar amount to complete the Feasibility Study.

"This investment to increase domestic capabilities for graphite exemplifies [DoD's] Industrial Base Policy's commitment to building a resilient industrial base to meet current and future national defense requirements," said Dr.  Laura Taylor-Kale, DoD Assistant Secretary for Industrial Base Policy.  "The agreement with Graphite One (Alaska) is in furtherance of the Defense Department's strategy for minerals and materials related to large-capacity batteries¹."