Great Lakes Graphite Makes Strategic Transition to Commercial Operations with Formal Launch of Innovations Division
February 26, 2015 (Source: Newsfile) — Ontario-Based Graphite Micronization Facility Positions the Company to Enter the Expanding Finished Carbon Tech Market
Great Lakes Graphite Inc. (TSXV: GLK) (OTC: GLKIF) (FWB: 8GL) (“Great Lakes” or the “Company“) is pleased to announce the formal launch of Great Lakes Innovations (“GLI“), an operating division of Great Lakes Graphite Inc. This division was established in the third quarter of 2014 in order to pursue specific opportunities in the growing value-added graphite products market, beginning with micronization and purification.
Representing a key enabling component of this strategy, the Company has entered an agreement in principle with Northfil Resources Limited to lease a fully equipped integrated micronization facility capable of processing flake graphite, located in Ontario. “We’re off to a strong start and are looking forward to a great relationship with Great Lakes Graphite.” said Paul Adams, President of Northfil Resources Limited.
The facility is planned to begin commercial operations during the second half of 2015, with a ramp-up to full production by the late 2016. Refurbishment of the plant is planned to begin immediately with commissioning scheduled to follow, in approximately five months.
Through these developments, the Company intends to achieve the following objectives:
- Establish a position in the upgraded graphite products market with North American customers.
- Create a competitive and disruptive advantage by leveraging existing assets.
- Pursue an accelerated timeline to cash flow and revenue by micronizing and upgrading flake graphite, enabled by supply agreements with current graphite producers.
- Develop customer relationships that will, in the longer term, position the Company to pursue off-take arrangements for Great Lakes’ 100% owned Lochaber Graphite Deposit, located in SW Québec.
CEO Paul Gorman commented on this exciting development, “Our business plan is designed to monetize an opportunity in a growing marketplace for finished carbon materials in North America. By leveraging existing resources, we are now positioned to begin generating significant cash flow this year, in a model that requires very little upfront capital. As always, our objective is to build an enterprise that generates substantial shareholder value over the long term, in a responsible, sustainable fashion.
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It is also worth noting that the re-commissioning of this facility will result in the creation of a number of jobs in a Northern Ontario community that is seeking to promote this type of economic development. In addition to plant operations, we envision a long-term potential for this facility to become a regional hub for industrial minerals processing research and development. We reached out to organizations dedicated to fostering job growth in Northern Ontario and we are now working closely with these groups to identify ways to maximize the economic benefit of this facility to the community. There is tangible near-term potential and opportunity here for everybody involved, not just for Great Lakes.
The Company will continue to communicate the on-going strategy to the market in a series of announcements that are scheduled over the coming weeks. These announcements will provide further detail on the positive developments announced today.”
Updated information regarding the Matheson Micronization Facility will be maintained on the Company’s website at: www.GreatLakesGraphite.com/Matheson.
About Great Lakes Graphite: Great Lakes Graphite Inc. is an Industrial Minerals company bringing value-added graphite products to market by establishing a vertically integrated supply chain and through the acquisition and development of high quality graphite deposits.
As there are currently no graphite mines producing in North America, Great Lakes Graphite has the ability to become one of the first producers to supply a growing regional customer base that requires high quality natural graphite, where pricing and demand continue to rise.
The Company, through strategic acquisitions and capable management will become a leader in the industrial minerals marketplace. The Company’s 100%-owned flagship Lochaber Graphite property is located just 35 kilometres east of Ottawa, in southwestern Québec. The Company has also entered into option and joint venture agreements with Eloro Resources Inc.(TSXV:ELO) on the Summit-Gaber Cobalt property located in the La Grande Greenstone Belt in the Baie James region of Québec. Further information regarding Great Lakes can be found on the Company’s website at: www.GreatLakesGraphite.com.
Great Lakes Graphite trades with symbol GLK on the TSX Venture Exchange and currently has 78,714,820 shares outstanding (115,278,656 fully diluted).
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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