Northern Graphite Closes Non-Brokered Private Placement
November 23 2017 - 6:15PM
Northern Graphite Corporation (“Northern” or the “Company”)
(TSXV:NGC)(OTCQX:NGPHF) announces that it has
closed its previously announced non-brokered private placement and
has issued 4,582,644 units at a price of $0.45 per unit for gross
proceeds of $2,062,190. Each unit consists of one common
share and one half of one common share purchase warrant, with each
full warrant entitling the holder to purchase one common share at a
price of $0.60 per share for a period of two years. The securities
are subject to a four month hold period from the date of
closing. The placement is also subject to final approval by
the TSX Venture Exchange.
The Company intends to use the net proceeds from
the private placement (i) to finalize operational permitting for
the Bissett Creek graphite project; (ii) to update the bankable
feasibility study for the project to reflect a substantial decline
in the CDN/US exchange rate, lower oil prices and more competitive
equipment pricing, and to integrate some capital cost reduction
modifications into the flow sheet; (iii) to conduct a pilot plant
test of the Company’s proprietary purification process which has
the potential to provide a substantial competitive advantage in the
manufacture of anode material for lithium ion batteries; and (v)
for working capital and general corporate purposes.
Gregory Bowes, Chief Executive Officer,
commented that, “the financing was oversubscribed which I believe
is a reflection of the quality of the Company’s asset and the
outlook for the graphite market. The financing provides the means
to continue moving forward with preparations for full project
financing, construction and production.”
The Company paid finders’ fees on part of the
private placement which consisted of $131,119.15 in cash and
291,370 broker warrants, with each broker warrant exercisable to
acquire one common share at a price of $0.60 for a period of one
year.
The securities issued under the private
placement, including the broker warrants and common shares
underlying the warrants and broker warrants, are subject to a
statutory hold period lasting until March 23, 2018.
A director and officer of the Company
participated in the private placement and acquired 100,000 units.
Such participation constitutes a “related party transaction”
pursuant to Multilateral Instrument 61-101 - Protection of Minority
Security Holders in Special Transactions (“MI 61-101”). The
issuance to this insider is exempt from the formal valuation and
minority shareholder approval requirements of MI 61-101 as the fair
market value of the units issued to, or consideration paid by such
person, did not exceed 25% of the Company’s market
capitalization.
This press release is for informational purposes
only and shall not be constituted as an offer to sell or the
solicitation of an offer to buy the units nor shall there be any
sale of the units in any jurisdiction in which such sale would be
unlawful.
About Northern Graphite
Northern is a Canadian company that has a 100%
interest in the Bissett Creek graphite deposit located in southern
Canada, relatively close to all required infrastructure. Bissett
Creek is an advanced stage project with a Full Feasibility Study
and its major environmental permit. Subject to the completion of
operational and species at risk permitting, which are well
advanced, Northern could commence construction in 2018 pending
financing. The Company believes Bissett Creek has the highest
margin, best flake size distribution and lowest marketing risk of
any new graphite project, and has the added advantages of low
capital costs and realistic production levels relative to the size
of the market.
Gregory Bowes, B.Sc. MBA, P. Geo., a Qualified
Person as defined under NI 43-101, has reviewed and is responsible
for the technical information in this press release.
For additional information, please
contact: Gregory BowesCEO (613)
241-9959
This press release contains forward-looking
statements, which can be identified by the use of statements that
include words such as "could", "potential", "believe", "expect",
"anticipate", "intend", "plan", "likely", "will" or other similar
words or phrases. These statements are only current predictions and
are subject to known and unknown risks, uncertainties and other
factors that may cause our or our industry's actual results, levels
of activity, performance or achievements to be materially different
from those anticipated by the forward-looking statements. The
Company does not intend, and does not assume any obligation, to
update forward-looking statements, whether as a result of new
information, future events or otherwise, unless otherwise required
by applicable securities laws. Readers should not place undue
reliance on forward-looking statements.
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.
Northern Graphite (TSXV:NGC)
Historical Stock Chart
From Aug 2024 to Sep 2024
Northern Graphite (TSXV:NGC)
Historical Stock Chart
From Sep 2023 to Sep 2024