Graphite One Resources Inc. (TSXV:GPH, OTCQX:GPHOF) announces that it has entered into a Memorandum of Understanding (“MOU”) with the Alaska Industrial Development and Export Authority (“AIDEA”) to explore opportunities to collaborate on the development of Graphite One’s proposed vertically integrated project to mine, process and manufacture high grade coated spherical graphite primarily for lithium-ion electric vehicle batteries (the “Graphite One Project” or the “Project”).
- Exploration of opportunities to maximize job creation and economic development via the Graphite One Project
- Facilitation of project permitting and development of a framework for community and stakeholder dialogue
- Options and opportunities for AIDEA to participate in infrastructure funding of project facilities related to the Graphite One Project
“Following the recent release of our Preliminary Economic Assessment(1), this MOU with AIDEA marks an important step in progressing our studies on the development of our Graphite One Project,” said Anthony Huston, Chief Executive Officer of Graphite One. “It serves as a strong signal of Alaska’s commitment to responsible development of the State’s natural resources. Graphite One pledges to be a responsible partner in this potential development.”
“The completion of the MOU with Graphite One aligns with our mandate to promote economic growth and diversification in Alaska,” said John Springsteen, Executive Director of AIDEA. “With the Preliminary Economic Assessment now available, we look forward to working with the Graphite One team to advance all aspects of the project’s review.”
The MOU acknowledges that Graphite One has commenced preliminary discussions with State of Alaska officials from the Department of Commerce, Community and Economic Development (DCCED), AIDEA and the Alaska Department of Natural Resources (DNR) to begin evaluating potential sites, within Alaska but away from the Graphite Creek property, at which facilities might be developed for further processing of Graphite Creek graphite. Criteria relevant to deciding on the location of such facilities in Alaska include power cost and supply, availability of industrial zoned land, proximity to tidewater and port facilities, and infrastructure that allows easy access for the workforce.
AIDEA has provided Graphite One a list of potential sites in Alaska to evaluate whether they might satisfy some or all of the relevant criteria.
In summary, the MOU covers the following aspects of the Project:
- Economic Impact. Facilitate strategies to maximize local economic benefits and job opportunities as a result of responsible development of the Graphite One Project.
- State Agency Collaboration. Establish the groundwork for collaboration with DCCED and DNR in order to assess the potential opportunities at each of the proposed locations for Processing and Manufacturing Facilities for suitability of the site and any other multi-user opportunities, including the assessment of future marine traffic patterns and logistics.
- Community Engagement. Provide a framework for AIDEA and Graphite One to engage cooperatively with local communities and other stakeholders to incorporate their input via public meetings and consultations.
- Permitting. Allow the parties to work cooperatively to identify activities requiring federal, state or local permitting.
- AIDEA Infrastructure Funding. Allow both parties to investigate options and opportunities for AIDEA to participate in funding some of the project facilities.
AIDEA’s purpose is to promote, develop, and advance the general prosperity and economic welfare of the people of Alaska. One of the ways AIDEA fulfills this purpose is by supporting development of natural resources in Alaska. AIDEA has the statutory authority to finance, develop and own and operate facilities and improvements, including roads intended for use in connection with the extraction, production, and transportation of minerals and materials.
ABOUT GRAPHITE ONE RESOURCES INC.
GRAPHITE ONE RESOURCES INC. (TSX VENTURE:GPH)(OTCQX:GPHOF) continues to develop its Graphite One Project (the “Project”), whereby the Company could potentially become the dominant American producer of high grade Coated Spherical Graphite (“CSG”) that is integrated with a domestic graphite resource. The Project is proposed as a vertically integrated enterprise to mine, process and manufacture high grade CSG primarily for the lithium-ion electric vehicle battery market. As set forth in the Preliminary Economic Assessment, potential graphite mineralization mined from the Company’s Graphite Creek Property, is expected to be processed into concentrate at a graphite processing plant. The proposed processing plant would be located on the Graphite Creek Property situated on the Seward Peninsula about 60 kilometers north of Nome, Alaska. CSG and other value-added graphite products, would likely be manufactured from the concentrate at the Company’s proposed graphite product manufacturing facility, the location of which is the subject of further study and analysis. The Company intends to make a production decision on the Project once a feasibility study is completed.
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