SRG:CC - SRG Announces Update on Financing Offtake and Strategic Partnerships Near Completion of Studies to Double Mine Production and Establish Downstream Processing Facility
(TheNewswire)
Montreal, QC - TheNewswire - January 18, 2023 - SRG Mining Inc. (TSXV:SRG) (“ SRG ” or the “ Company ” ) today announced further details on thefinancing, offtake and strategic partnership discussions to advancethe development of the Lola Graphite Project in the Republic of Guinea(the “ Lola GraphiteProject ”) into a fully integrated supplier ofbattery anode material to the North American and European markets. Asthe Company looks back on the transformational year of 2022 where itattracted significant investment from the La Mancha Fund, it ispleased to announce the progress it has made on the implementation ofthe integrated business model. The integrated business model wouldresult in the creation of a mine-to-market active anode materialproducer, hosting a large high-purity graphite production mine andconcentrator in Africa and a value-added, coated spherical purifiedgraphite (“ CSPG ”) conversion facility in Europe or North America.
Financing, Offtake and StrategicPartnership Discussions Progressing
The Company is advancing discussions with multiple parties who have expressed interest in providingfinancing to advance SRG towards first production. The Company is veryencouraged by the level of interest it has received from severalhigh-quality investors to provide both debt and equity financing tofund the construction of the first phase of the Lola Graphite Project.In addition to the existing offtake agreements, several Western andAsian parties have also expressed interest in a significant andlong-term offtake agreement for the Lola Graphite Project concentrateproduction. The Company has made available, large one-tonne samplesfrom its bulk sample pilot plant to prospective offtakers to completethe necessary quality assessments ahead of progressing the discussionson commercial terms for its high quality, battery-grade graphiteconcentrate. As the Company is developing itsCSPG strategy several parties have expressed interest in joiningforces with SRG to become a Tier One supplier to the Western endmarkets.
SRG will provide further commentonly if a specific transaction or process is concluded, or if furtherdisclosure is required or deemed appropriate. There can be noassurance that the Company will pursue any transaction or that atransaction, if pursued, will be completed.
Studies Near Completion
The independent, updated feasibility study (the“ Updated FeasibilityStudy” or “UFS ”), which targets initialproduction of 100,000 tonnes per annum (“ tpa ”) of graphiteas concentrate from the Lola Graphite Project and is led by DRA GlobalLimited (“ DRA ”) is progressing. In parallel with the UFS the Company isalso progressing the independent, preliminary economic assessment(“ PEA ”) for the start-up of a second transformation step toproduce CSPG from the Lola Project graphite concentrate. The PEA isbeing prepared by Dorfner Anzaplan GmbH (“ Anzaplan ”), aleading consultancy and engineering company for industrial, specialtymineral and metal projects, based in Hirschau, Germany. The PEA isscheduled to be completed in Q2 2023.
An integral part of the PEA is a comprehensive reviewto update existing metallurgical test work on spheroidization,purification and coating aspects to produce a high-quality CSPGproduct. The Company has provided Anzaplan and its partners with partof its 10-tonne bulk sample concentrate from its pilot-scalemetallurgical test work. The preliminary results of this additionalmetallurgical test work have confirmed that theLola Graphite Project concentrate can be purified into a battery-gradeproduct, that will serve as the precursor for the production ofbattery-grade CSPG product required by cell manufacturers.
In addition, the Company has contracted Minviro Ltd. toundertake a life-cycle assessment (“ LCA ”) on the LolaGraphite Project, to determine the project's carbon footprintpotential in addition to assisting in developing measures to mitigatethese emissions. The first part of the LCA assessment is amine-to-gate assessment of the project's environmental impacts, andcollection of data for mining and concentrating the ore todifferentiate Scope 1, 2, and 3 emissions. The second part of the LCAassesses the environmental impact of mining activities and theconcentration of natural graphite, as well as the impacts of producingCSPG.
“These studies are a continuation of the previouslyannounced strategy and will enable the Company to advance discussionswith both financial institutions as well as potential customers,”said Matthieu Bos, President and Chief Executive Officer. “Given theprojected surge in demand for graphite from the electric-vehiclerevolution and renewable energy technologies, the Lola Project will beof significant strategic importance for auto makers and clean-energycompanies looking to secure a long-term, reliable supply ofhigh-quality graphite.”
About SRG Mining
SRG Mining is a Canadian-based mining company focusedon developing the Lola Graphite Project located in the Republic ofGuinea, West Africa. The Lola Graphite Project has Proven and ProbableReserves of 42Mt at a grade of 4.2% Cg. SRG aims to develop a fullyintegrated source of battery anode material to supply the Europeanlithium-ion and fuel cell markets. With attractive operating costs,proximity to European end-markets and strong ESG credentials, theCompany is poised to become a reliable supplier while promotingsustainability and supply chain transparency. SRG is committed to generating sustainable, long-term benefits thatare shared with the host countries and communities where itoperates.
For additional information, please visit SRG’swebsite at www.srgmining.com .
Contact :
Matthieu Bos
President & CEO
Email: m.bos@srgmining.com
Neither the TSXV nor its RegulationServices Provider (as that term is defined in the policies of theTSXV) accepts responsibility for the adequacy or accuracy of thisrelease.
This press releasecontains "forward-looking information" within the meaning ofCanadian securities legislation. All information contained herein thatis not clearly historical in nature may constitute forward-lookinginformation. Generally, such forward-looking information can beidentified by the use of forward-lookingterminology such as “advance”, “progress”, “result”,“confirm”, “target”, “increase”, “expect”,“scheduled”, “enable”, projected”, “drive”, “aim”,“realise”, “growth”, “goals”, “continue”,“advance”, “potential”, “will”, “demonstrate”,“deliver”, “believe”, or variations of such words and phrasesor state that certain actions, events or results "may","could", "would" or "might".Forward-looking information is subject to known and unknown risks,uncertainties and other factors that may cause the actual results,level of activity, performance or achievements of the Company to bematerially different from those expressed or implied by suchforward-looking information, including but not limited to: (i)volatile stock price; (ii) the general global markets and economicconditions; (iii) the possibility of write-downs and impairments; (iv)the risk associated with exploration, development and operations ofmineral deposits and mine plans for the Company’s mining operations;(v) the risk associated with establishing title to mineral propertiesand assets including permitting, development, operations andproduction from the Company’s operations being consistent withexpectations and projections; (vi) fluctuations in commodity prices,finding offtake takers and potential clients or enforcing suchagreements against same and other risks and factors described orreferred to in the section entitled "Risk Factors" in theMD&A of the Company and which is available at www.sedar.com, allof which should be reviewed in conjunction with the information foundin this news release.
Although the Company has attempted to identifyimportant factors that could cause actual results to differ materiallyfrom those contained in the forward-looking information, there may beother factors that cause results not to be as anticipated, estimatedor intended. There can be no assurance that such forward-lookinginformation will prove to be accurate, as actual results and futureevents could differ materially from those anticipated in suchforward-looking information. Such forward-looking information has beenprovided for the purpose of assisting investors in understanding theCompany's business, operations and exploration plans and may not beappropriate for other purposes. Accordingly, readers should not placeundue reliance on forward-looking information. Forward-lookinginformation is given as of the date of this press release, and theCompany does not undertake to update such forward-looking informationexcept in accordance with applicable securities laws.
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