Focus Graphite Enters Into a Pre-Development Agreement With the Uashat Mak Mani-Utenam Innu First Nation on the Lac Knife Graphite Project
October 28, 2014 (Source: Marketwired) — Focus Graphite Inc. (TSX VENTURE: FMS) (OTCQX: FCSMF) (FRANKFURT: FKC) (“Focus” or the “Company”) is proud to announce the signing of a Pre-Development Agreement (“PDA”) with the Uashat Mak Mani-Utenam Innu (“ITUM”) First Nation Band Council, for the Lac Knife Mine Development Project located 30 km south of Fermont, in north-eastern Québec.
The intent of ITUM-Focus agreement is to enter into a collaborative relationship in order to better understand the impacts of the project and to incorporate ITUM’s concerns into the Lac Knife mine development project planning. The PDA further lays out the possibility that future negotiations could pave the way to a long-term partnership that would allow for the sustainable development of the project in the region as well as innovative opportunities in the secondary transformation market, all the while working with ITUM to address the community’s social needs and supporting its long term vision and aspirations.
Don Baxter, President and Chief Operating Officer of Focus Graphite said: “We are very pleased to announce this agreement with ITUM to work together regarding the Environmental and Social Impact Assessment (“ESIA”) of the Lac Knife mine development project. This Pre-Development Agreement with ITUM confirms that both parties will continue working together to better understand and assess the mine development project during the ESIA study process. Together, we will assess the environmental impact and project benefits in preparation for potential discussions towards the creation of a partnership.
“Now that we have published battery test results for value added spherical graphite, we will also work towards a partnership regarding the secondary transformation of graphite concentrate to spherical graphite for the Lithium Ion battery market. This opportunity to supply the battery grade graphite market will undergo a preliminary economic assessment once the Lac Knife project financing process is completed,” Mr. Baxter added.
Chief Mike McKenzie of ITUM said the agreement serves as a starting point for both parties’ future collaborative efforts.
“This is an important first step in my community’s assessment of the Lac Knife project. Amongst other measures, the agreement includes a welcome contribution from Focus Graphite to help offset the important costs associated with analyzing mining projects. I also salute Focus’ interest in partnering with my community and note that the company’s link to green technologies could prove to be an interesting sustainable partnership opportunity for the Innu of Uashat mak Mani-utenam,” Chief McKenzie said.
The technical information in this news release was prepared, reviewed and approved by Mr. Don Baxter, P. Eng., Focus President & Chief Operating Officer, a Qualified Person as defined by NI 43-101 guidelines.
About Focus Graphite
Focus Graphite Inc. is an emerging mining development company with an objective to produce value added products initially for the lithium ion battery market from the Lac Knife graphite deposit located south west of Fermont, Québec. The Lac Knife project hosts a NI 43-101 Measured and Indicated Mineral Resource Estimate* of 9.6 million tonnes (432,000 tonnes Measured and 9,144,000 tonnes Indicated) grading 14.77% graphitic carbon (Cg) as natural flake graphite with an additional Inferred Mineral Resource Estimate* of 3.1 million tonnes grading 13.25% Cg. Focus’ goal is to assume an industry leadership position by becoming a low-cost producer of technology-grade graphite. The Feasibility Study filed with SEDAR on August 8, 2014 for the Lac Knife Project indicates the project is economically viable and has the potential to become a low cost graphite producer based on 7.86 million tonnes (429,000 tonnes Proven and 7,428,000 tonnes Probable) of Proven and Probable Reserves grading 15.13 Cg. On May 27, 2014 the Company announced the Potential for High Value Added Sales in the Li-Ion Battery Sector following battery coin cell tests performed on Lac Knife Spherical Graphite (“SPG”). Testing measured the performance metrics and confirmed Focus’ capability to tailor lithium ion battery anode grade graphite and value added products to meet the most stringent customer specifications. Focus Graphite is a technology-oriented enterprise with a vision for building long-term, sustainable shareholder value. Focus also holds a significant equity position in graphene applications developer Grafoid Inc..
* Mineral resources are not mineral reserves and do not have demonstrated economic viability
This News Release contains “forward-looking information” within the meaning of Canadian securities legislation. All information contained herein that is not clearly historical in nature may constitute forward-looking information. Generally, such forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. 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 be materially different from those expressed or implied by such forward-looking information, including but not limited to:
(i) volatile stock price; (ii) the general global markets and economic conditions; (iii) the possibility of write-downs and impairments; (iv) the risk associated with exploration, development and operations of mineral deposits; (v) the risk associated with establishing title to mineral properties and assets; (vi) the risks associated with entering into joint ventures; (vii) fluctuations in commodity prices; (viii) the risks associated with uninsurable risks arising during the course of exploration, development and production; (ix) competition faced by the Company in securing experienced personnel and financing; (x) access to adequate infrastructure to support mining, processing, development and exploration activities; (xi) the risks associated with changes in the mining regulatory regime governing the Company; (xii) the risks associated with the various environmental regulations the Company is subject to; (xiii) risks related to regulatory and permitting delays; (xiv) risks related to potential conflicts of interest; (xv) the reliance on key personnel; (xvi) liquidity risks; and (xvii) the risk of potential dilution through the issue of common shares. Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made, including but not limited to, continued exploration activities, no material adverse change in metal prices, exploration and development plans proceeding in accordance with plans and such plans achieving their stated expected outcomes, receipt of required regulatory approvals, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Such forward-looking information has been provided for the purpose of assisting investors in understanding the Company’s business, operations and exploration plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is made as of the date of this News Release, and the Company does not undertake to update such forward-looking information except in accordance with applicable securities laws.
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