GPHOF - InvestorNewsBreaks - Graphite One Inc. (TSXV: GPH) (OTCQX: GPHOF) Announces Loan Agreement for Up to $5M
Graphite One (TSXV: GPH) (OTCQX: GPHOF), a company working to complete a domestic supply chain for advanced graphite materials, has entered into an unsecured loan agreement for up to $5 million; the company’s subsidiary Graphite One (GI Alaska ) Inc. is also on the loan. According to the announcement, the loan is with Taiga Mining Company Inc. ("Taiga"), a controlling shareholder of the company. The loan agreement comes after the company was awarded a $37.5 million grant from the U.S. Department of Defense to accelerate completion of its feasibility study. Earlier this year, a U.S. government geological survey reported that the company’s Alaska-based Graphite Creek deposit is “the largest known flake graphite resource in the USA and is among the largest in the world.” The company anticipates using the funds from the loan to double the Graphite Creek resource by infill drilling along trend to Hole 22GC079, drilled 2.1 km west of the current block model, which encountered 58 meters of 4.18% graphite. According to the announcement, the loan matures in one year and the interest on the loan accrues at a rate of 12% per annum; funds from the loan can be drawn from time to time or all at once. As part of the loan agreement, G1 Alaska granted Taiga an option to purchase a net smelter returns royalty interest in 0.25% increments for every $1.25 million advance up to a maximum of 1% on the 133 Alaska state claims owned or leased by G1. “Graphite One thanks Taiga for its continued support, as the funding will allow the company to continue with delineating the scope and size of our resource,” Graphite One founder and CEO Anthony Huston in the press release. “This funding, like the $37.5 million DoD grant announced this week, is not dilutive to our shareholders.”
To view the full press release, visit https://ibn.fm/mWo92
About Graphite One Inc.
Graphite One is developing its Graphite One Project to become an American producer of high-grade anode materials on a commercial scale 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 approximately 35 miles 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. For more information about this company, please visit www.GraphiteOneInc.com.
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