MONTREAL,
Oct. 2, 2013 /CNW/ - Mason
Graphite Inc. ("Mason Graphite" or the "Company") (TSX.V: LLG)
is pleased to provide an update on its recent corporate
developments.
Recent and Upcoming Milestones
Since acquiring the Lac Guéret project in
April 2012, Mason Graphite has
achieved the following important milestones that are critical to
advancing the project towards the development of a mine.
Recent Milestones |
• Acquisition of Lac Guéret project (April
2012)
• TSX Venture Exchange listing (October 2012)
• Completion of a 26,500 metre drilling program
(2012)
• Completion of an initial NI 43-101 mineral
resource estimate (July 2012)
• Results from initial metallurgical test work
(February 2013)
*see press release dated February 22,
2013
• Graphite
recoveries in excess of 96%
• 29% large
flake graphite
• 96.3%
concentrate purity (+150 mesh cumulative)
• Completion of a Preliminary Economic Assessment
(April 2013)
*see complete technical report on SEDAR
or masongraphite.com
• 22 years of
production at 27.4% Cgr (LOM)
• Direct
capital costs of $89.9M
• Production
costs of $390/tonne
• Completion of a $5 million financing (June
2013)
• $24,233,210
raised since April 2012
• Receipt of purification test results (September
2013)
|
The Company expects to complete a number of
important de-risking events in the upcoming months, including the
initiation of a definitive Feasibility Study and piloting program.
Mason Graphite also intends to initiate the permitting process for
the Lac Guéret project by filing an environmental baseline study.
Expected upcoming milestones are listed in the table below:
Expected Upcoming Milestones |
• Update of the mineral resource estimate and
the NI 43-101 Technical
Report for the Lac Guéret project
• Completion of a 15,000 metre drilling
program
• Receipt of results from more detailed
metallurgical test work
• Completion of Feasibility Study and Pilot
Program
• Advancement of permitting, including the
completion of the
Environmental Baseline Study
|
Benoît Gascon, President and CEO of Mason
Graphite, commented, "The recent developments at our Lac Guéret
project have all either met or exceeded our expectations. This is
very encouraging to us and the speed at which we have been able to
advance the project speaks to the quality of our asset and of our
experienced team members. We believe that our project has
world-class potential and we will continue to work diligently to
advance the project and achieve our objective of becoming a
graphite producer as quickly as possible."
Extension of October 2013 Warrants
Mason Graphite has applied to the TSX Venture
Exchange to extend the term of 12,614,989 common share purchase
warrants (the "Warrants") previously set to expire on October 30, 2013 to October 30, 2014. Each Warrant is exercisable for
one common share in the capital of the Company for an exercise
price of $1.00. Under the amended
terms of the warrants, if at any time after October 30, 2013 the common shares of the Company
trade at or above $1.40 per share (on
a volume weighted adjusted basis) for a period of 30 consecutive
days, the Company will have the right to accelerate the expiry date
of the Warrants to the date that is 30 days after the Company
issues a news release announcing that it has elected to exercise
this acceleration right.
Investor Relations Engagement
Mason Graphite has engaged Proactiveinvestors to
provide investor relations services to the Company.
Proactiveinvestors is a leading multi-media news organisation,
investor portal and events management business with offices in
New York, Sydney, Perth, Toronto, Calgary, Vancouver and London. Proactiveinvestors operates five
financial websites in four languages providing breaking news,
commentary and analysis on hundreds of listed companies across the
globe daily. The Company has agreed to pay Proactiveinvestors
$1,250 per month for a period of 12
months. The agreement is subject to the approval of the TSX Venture
Exchange.
Non-brokered Private Placement
Mason Graphite has launched a non-brokered
private placement financing of 155,000 common shares of the Company
at a price of $0.40 for total gross
proceeds equal to $62,000 (the
"Financing"). The common shares issued pursuant to the Financing
will be subject to a hold period of four months and one day. The
Financing is fully subscribed for, but remains subject to the
approval of the TSX Venture Exchange. The proceeds of the Financing
will be used for general corporate purposes.
Qualified Person
Jean L'Heureux, Eng., Mason Graphite's Executive
Vice-President of Process Development and a Qualified Person as
defined by National Instrument 43-101, has reviewed and approved
the scientific and technical content of this press release.
About Mason Graphite
Mason Graphite is a Canadian mining company
focused on the exploration and development of its 100% owned Lac
Guéret graphite property, which is located in northeastern Québec
near the main service center of Baie-Comeau. The Lac Guéret property currently
hosts a National Instrument 43-101 compliant Mineral Resource (see
news release issued on July 16,
2012), based only on 17% of the known mineralized zone.
Excellent potential exists for mineral growth. The Company has also
completed a Preliminary Economic Assessment study which features 22
years of production at 27.4% Cg and a pre-tax internal rate of
return of 33.7% (see technical report issued by the Company on
June 6, 2013). The Company's senior
management team possesses significant graphite expertise from their
experience at Timcal/Imerys; including Benoit Gascon, CPA, CA, who held executive
positions for 20 years, including over 6 years as President and
CEO; Jean L'Heureux, Eng., Executive Vice-President, Process
Development, with over 20 years of experience; and Luc Veilleux, CPA, CA, Chief Financial Officer
and Executive Vice-President, with 8 years of experience. Timcal,
now owned by Imerys, is one of the largest graphite producers in
the world.
Cautionary Statements Regarding Forward
Looking Information
This press 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 resulting issuer in
securing experienced personnel and financing; * 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 resulting issuer; (xii)
the risks associated with the various environmental regulations the
resulting issuer 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; (xvii) the risk of potential dilution through the issue of
common shares; (xviii) the Company does not anticipate declaring
dividends in the near term; (xix) the risk of litigation; and (xx)
risk management.
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 press
release, and the Company does not undertake to update such
forward-looking information except in accordance with applicable
securities laws.
Full technical details and notes for the
Preliminary Economic Assessment ("PEA") can be found in the
technical report entitled "NI 43-101 Technical Report on the
Preliminary Economic Assessment, Lac Guéret Graphite
Project, Quebec, Canada"
dated June 6, 2013 and effective April 22, 2013,
which is available under Mason Graphite's profile on
SEDAR at www.sedar.com and on Mason
Graphite's website
at www.masongraphite.com.
A PEA is preliminary in nature and includes
Inferred Mineral Resources, which are considered too geologically
speculative to have mining and economic considerations applied to
them that would enable them to be categorized as mineral reserves.
Mineral resources that are not mineral reserves do not have
demonstrated economic viability. There is no certainty that
the reserves development, production, and economic forecasts on
which the PEA is based will be realized.
Neither the 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.
SOURCE Mason Graphite Inc.