Galaxy Capital Corp. Acquires Buckingham Graphite Property in Quebec
March 15 2012 - 9:15AM
Marketwired
Galaxy Capital Corp. (TSX VENTURE:GXY) (the "Company" or "Galaxy")
is pleased to announce that it has signed an agreement to acquire a
100-per-cent interest in the Buckingham Graphite Property,
Quebec.
Buckingham Graphite Property
The Buckingham Graphite property comprises two former producing
mines, located just east of Buckingham, QC. They are located in the
highly prospective Central Metasedimentary Belt of the Grenville
geological province, host to many active graphite projects. The
host rocks for both deposits are graphitic crystalline marbles,
similar to the host stratigraphy at Timcal's Lac des Iles graphite
mine, currently Canada's only producing graphite mine. The two
properties cover a total of 1,324 Ha on 22 mining claims.
The Ste-Marie deposit had small scale production in 1865, with a
total reported production of 50 tons of graphite. The
mineralization is hosted in lenticular masses and mineralized
veins, within a crystalline limestone marble. The mineralization
results from carbonitization of organic matter in calcareous
sedimentary formations during the Grenvillian metamorphic event.
The graphite mineralization is typically massive.
The Dominion mine produced a reported 916 tons of graphite,
between 1910 and 1919. The geological setting is very similar to
the Ste-Marie deposit. Flake graphite is reported to be the common
form of graphite in the deposit.
The Company cautions that it has not verified the quality and
accuracy of the historic data reported in this news release, which
predate the introduction of National Instrument 43-101 and cautions
readers not to rely upon them. The historic information was
generated from property data on the website of the Quebec Ministere
des Resources Naturelle et de la Faune. This source believed to be
reliable; however, it has not been confirmed by the company's
Qualified Person.
Chris Healey, President of Galaxy commented, "This acquisition,
along with the Sun Graphite property acquisition previously
announced, will move Galaxy to a position of leadership in the
emerging electrical metals field."
Graphite Market
Global consumption of natural graphite has increased from
approx. 600,000 in 2000 to 1.2 MM t in 2012. Demand for graphite
has been increasing by approximately 5% per year since 2000 due to
the ongoing modernization of China, India and other emerging
economies, resulting in strong demand from traditional end uses
such as the steel and automotive industries. Graphite also has many
important new applications such as lithium ion batteries, fuel
cells and nuclear and solar power that have the potential to create
significant incremental demand growth. There is roughly 20 times
more graphite required by weight to produce a lithium-ion battery
than there is lithium. Demand for graphite is expected to rise as
electric vehicles and lithium battery technology are adopted as
well as increasing uses in new technology applications.
Natural graphite comes in several forms: flake, amorphous and
lump. Of the 1.2 million tonnes of graphite produced annually,
approximately 40% is of the most desirable flake type. China, which
produces about 73% of the world's graphite, is seeing production
and export growth leveling and export taxes and a licensing system
have been instituted. A recent European Commission study regarding
the criticality of 41 different materials to the European economy
included graphite among the 14 materials high in both economic
importance and supply risk (Critical Raw Materials for the EU, July
2010). Graphite prices have been increasing in recent months and
over the last couple of years prices for large flake, high purity
graphite (+80 mesh, 94-97%C) have more than doubled.
Terms
Galaxy has an option to earn a 100-per-cent interest in the
Buckingham Graphite Property, Quebec from 9187-1400 Quebec Inc. by
making the following payments and issuing the following common
shares to the vendors: i) $15,000 upon signing the letter agreement
(paid), ii) $15,000 and 300,000 common shares on receipt of the TSX
Venture Exchange ("TSX-V") acceptance of the agreement, iii) and
300,000 common shares six months from TSX-V acceptance.
The vendor will retain a 2-per-cent net milling royalty on the
property, 1% of which can be purchased by Galaxy for
C$1,000,000.
Chris M. Healey P.Geo, a Qualified Person as defined by National
Instrument 43-101, has reviewed and approved the technical content
of this release.
CHRIS M. HEALEY
ON BEHALF OF THE BOARD
Chris M. Healey, President and CEO
We seek safe harbor.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Galaxy Capital Corp. Chris M. Healey President and CEO
(604) 921-1810 (604) 921-1898 (FAX)