VANCOUVER, March 4, 2019 /CNW/ - Leading Edge
Materials Corp. ("Leading Edge Materials" or the
"Company") (TSXV: LEM) (OTCQB: LEMIF)
(Nasdaq First North: LEMSE) is pleased to provide an update
on the progress of the internal corporate strategic review (the
"Strategic Review") announced 7th January
2019. The review is being led by Company Chairman Mr.
Michael Hudson and Mr. Filip Kozlowski, an Independent Director, and
was initiated to identify, examine and consider opportunities
across its portfolio of individual assets to enhance shareholder
value.
Leading Edge Materials is advancing a portfolio of European
battery raw material projects including the fully built and
permitted Woxna graphite mine in Sweden ("Woxna"), the Bihor Sud
cobalt-copper-nickel project in Romania, and the Norra Kärr heavy rare earth
element-zirconium-hafnium deposit, of which are all high merit
projects within the European raw material sector.
As a first step, the Strategic Review highlighted that the
Company's combination of discovery-stage and development-stage
assets may present different requirements with regard to
operational structure, capital needs and investor preferences.
The Board has resolved that the next stage of the Strategic
Review will identify and compare opportunities for the Woxna
graphite mine. Potential recommendations from this stage of the
Strategic Review may include a transition to a freestanding
European company, and will consider direct third-party investment
into Woxna, horizontal or vertical joint-venture of with aligned
parties, or a standalone public listing of Woxna on a Swedish
exchange.
The Board emphasizes that any recommendation is predicated on
Leading Edge Materials continuing to hold significant exposure to
the success of the Woxna graphite mine as a future anode supplier,
while enabling the Company to allocate resources to progress
discovery at other projects within the portfolio and therefore
maximize value for shareholders.
The merits of Woxna include:
- A fully constructed mine, with all operating equipment,
infrastructure and waste management in place to produce 10,000
tonnes of flake graphite per year with operating permits until
2041;
- Substantial sunk capital such that further capital investments
to achieve commercial volume of high purity anode production are
forecast to be relatively modest;
- Potential to be a first mover in the supply of European
sustainably-sourced ultra-high purity natural graphite anode for
lithium ion batteries. Recent research (see press release dated
18th January 2019)
undertaken by the Company has provided the data required for
installation of a purification and spheronisation demonstration
plant on the Woxna mine site; and
- The opportunity for Woxna graphite to be use as a feed material
for graphene production, and as a supplier to other high value
applications.
The Board restates that there is no fixed timeline for the
Strategic Review and that the Company will disclose developments
with respect to the review process if a potential transaction is
identified and/or further disclosure is required. The Board
cautions that there is no assurance or guarantee that any potential
transaction identified by the Strategic Review will be pursued.
Mr. Mark Saxon, Interim CEO
Company stated, "The Woxna graphite mine is a unique project in
the sector, with the capacity to be both a near-term and long-term
supplier of European natural graphite anode, and other high value
graphite products including graphene, to European customers.
Woxna has consistently attracted significant interest, with a
high European industrial awareness of potential products and
regular inquiries around current status. The Strategy Review
is seeking mechanisms to accelerate the transition of the mine from
the production of flotation concentrate only, to the production of
high-purity anode, which should be beneficial to both Leading Edge
Material shareholders and emerging European lithium ion battery
customers."
On behalf of the Board of Directors, Leading Edge
Materials Corp.
Mr. Mark
Saxon, Interim CEO
About Leading Edge Materials
Leading Edge Materials is a Canadian public company focused on
production of high value critical raw materials for the European
market, with an operating base in the Nordic region, a region well
recognized for its promotion and investment in innovation. LEM's
flagship asset is the Woxna Graphite production facility located in
central Sweden targeting the
supply of specialty materials for lithium ion battery production.
LEM's assets and research focus are towards the raw materials for
Li-ion batteries (graphite, lithium, cobalt); materials for high
thermal efficiency building products (graphite, silica, nepheline);
and materials that improve the efficiency of energy generation
(dysprosium, neodymium, hafnium). Investments are linked to the
global shift to low-carbon energy generation and energy storage.
Leading Edge Materials currently operate in four divisions,
Graphite, Lithium, Rare Earth and Cobalt. Mangold
Fondkommission AB is the company's Certified Adviser ("CA")
as part of the listing requirements for Nasdaq First North.
Additional Information
This information is inside information that Leading Edge
Materials Corp. (publ). is obliged to make public pursuant to the
EU Market Abuse Regulation. The information was submitted for
publication through the agency of the contact person set out above,
at 4th March 2019 at 1:00 PM Vancouver time.
Leading Edge Materials is listed on the TSXV under the symbol
"LEM" and Nasdaq First North Stockholm under the symbol
"LEMSE". Mangold Fondkommission AB is the Company's CA on
Nasdaq First North and may be contacted at +46 (0) 8 5030
1550.
Reader Advisory
This news release may contain statements which
constitute "forward-looking information", including
statements regarding the plans, intentions, beliefs and
current expectations of the Company, its directors,
or its officers with respect to the future business activities of
the Company. The words "may", "would", "could", "will", "intend",
"plan", "anticipate", "believe", "estimate", "expect" and similar
expressions, as they relate to the Company, or
its management, are intended to identify such forward-looking
statements. Investors are cautioned that any such forward-looking
statements are not guarantees of future business
activities and involve
risks and uncertainties, and
that the Company's future business activities may
differ materially from those in the
forward-looking statements as a result of various
factors, including, but not limited to,
fluctuations in market prices, successes of the operations of
the Company, continued availability of capital and financing and
general economic, market or business conditions.
There can be no assurances that such information will
prove accurate and, therefore, readers are advised to rely on their
own evaluation of such uncertainties. The Company does not
assume any obligation to update any forward-looking
information except as required under the applicable
securities laws.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accept responsibility for the adequacy or
accuracy of this news release.
SOURCE Leading Edge Materials