Gratomic Inc. is pleased to announce that the Company has entered into a letter of intent with Zumbi Mineração Brazil and the shareholders of Zumbi for the acquisition of 100% of the rights and interests in and to the “Capim Grosso Property” comprising mineral claim 870.1802012 located in Capim Grosso, BA, Brazil : make a one-time cash payment equal to CAD $ 200,000; issue that number of common shares in the …
Gratomic Inc. (“Gratomic“, “GRAT” or the “Company”) (TSXV:GRAT)(OTCQX:CBULF)(Frankfurt:CB82) is pleased to announce that the Company has entered into a letter of intent with Zumbi Mineração Brazil (“Zumbi”) and the shareholders of Zumbi (collectively the “Vendors”) for the acquisition of 100% of the rights and interests in and to the “Capim Grosso Property” (the “Acquisition”) comprising mineral claim 870.1802012 (426.03 Ha) located in Capim Grosso, BA, Brazil (the “Target Property
In consideration for a 100% interest in the Target Property, Gratomic will, upon closing of the Acquisition (the “Closing“): (i) make a one-time cash payment equal to CAD $ 200,000; (ii) issue that number of common shares (“Common Shares”) in the capital of GRAT (the “Subject Shares“), as is equal to the number arrived at by dividing CAD$2,300,000 by the price per Common Share at the date of the execution of the definitive agreement relating to the Acquisition; and (iii) issue a promissory note in the amount of CAD$3,000,000 payable on the earlier to occur of: (a) that date which is twenty (24) months after Closing; and (b) ten (10) business days after the receipt by GRAT of a pre-feasibility study in respect of the Target Property completed in accordance with and pursuant to National Instrument 43-101 “Standards of Disclosure for Mineral Projects”. The Subject Shares will be issued as directed by the Vendors and will be subject to a four month and one day hold period from the Closing.
The Vendors will also retain a 3% gross smelter return royalty (the “Royalty“) in respect of all minerals processed from the Target Property, other than graphite, on the terms and conditions set forth in a gross smelter royalty agreement, which shall contain the usual covenants, agreements, terms and conditions for a royalty agreement (the “Royalty Agreement“). The Royalty will be reduced by any pre-existing net smelter royalties in respect of the Target Property.
Acquiring the Brazilian graphite project provides Gratomic the opportunity to diversify the Company’s interests and develop the graphite deposit at the Capim Grosso project. This strategically positions the Company to better meet growing demand for high quality graphite and provides a significant competitive advantage by limiting risk through business development in several key mining friendly jurisdictions.
The Capim Grosso graphite project is located within the São Francisco Craton (SFC). The SFC is a tectonic domain surrounded by Neoproterozoic orogens. Its southern sector is composed by Archean crust, with age between 3.5 and 2.6 Ga, that is formed mostly by granite-gneisses and greenstone belts constituted by mafic-ultramafic, intermediate-felsic volcanic and volcanoclastic rocks with terrigenous sediments. Graphite at Capim Grosso is set within NW-SE striking ultramafic units.
The Vendors of the project have completed three preliminary drillholes and 10 shallow trenches over a 1 km part of the mineralisation. Assay results show total graphitic carbon (TGC) of between 6.79 % TGC over 2.5 m to 20.95 % TGC over 2.4 m in surface trenching. Drilling results of 26.47 % TGC over 1 m have been obtained. While the QP has visited the sites, assays have not been verified and true mineralisation widths have not yet been obtained.
Immediately following Closing, Gratomic will commence a trenching program to generate further geological information and plan future drilling. The Company has collected verification samples on the property and has sent these to SGS Geosol Brazil for umpire analysis. These form part of the prequalification conditions to conclude the transaction.
Arno Brand, President and CEO commented, “Obtaining the Capim Grosso Project will serve as our base in Brazil, the largest graphite producer outside of China, as we plan to expand operations. The Company has reviewed projects all around the world and considers Zumbi to be one of the most promising.”
Armando Farhate, COO & Head of Graphite Marketing and Sales stated, “Bringing Gratomic to my home country has a touch of personal satisfaction to me. Having worked for the largest and most traditional graphite producer in the country gives me the required experience to support Gratomic on this very strategic move towards becoming a key player in the graphite world.”
The Acquisition is subject to satisfactory completion of a due diligence review of Zumbi and the Target Property by Gratomic, the determination of the appropriate structure of the Acquisition and execution of a definitive agreement relating to the Acquisition. The Acquisition (including the issuance of the Subject Shares) is subject to the fulfillment of certain conditions precedent as are customary for transactions of this nature including the approval of the TSX Venture Exchange.
Nico Scholtz is a consulting geologist and has reviewed and approved the scientific and technical information in this news release. Mr. Scholtz is a registered Professional Natural Scientist with the South African Council for Natural Scientific Professions (Pr. Sci. Nat. No. 400299/07). Mr. Scholtz has reviewed and approved the scientific and technical information in this press release and is the Company’s “Qualified Person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
About Gratomic Inc.
Gratomic is focused on introducing an exceptional anode material to the global electric vehicle and energy storage supply chains. True to its roots as an exploration and mining company, Gratomic aims to achieve full operational capabilities in 2021 on its Aukam Graphite Project and continues to diversify its assets into a multi-national company with various projects globally. Large quantities of its naturally high-quality vein graphite have been shipped for testing to confirm its viability as an anode material. Gratomic is confident that the results will provide a unique competitive advantage in its desired target markets.
The Company’s recent collaboration agreement with Forge Nano has advanced the developments on its graphite finalization phase for the micronization, spheronization, and the patented ALD coating of its Aukam vein graphite for use in lithium-ion batteries. Forge Nano is a global leader in surface engineering and precision nano-coating technology, using Atomic Layer Deposition.
GRAT has two outstanding off-take purchase agreements with TODAQ and Phu Sumika with contract fulfillment slated to begin in 2021. Gratomic plans to deliver mine-to-market traceability through its partnership with deeptech company TODAQ by providing documented tracking on all graphite generated at its flagship Aukam Graphite Project.
For more information: visit the website at www.gratomic.ca or contact:
Arno Brand at email@example.com or 416 561-4095
Subscribe at gratomic.ca/contact/ to be added to our email list.
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Forward Looking Statements:
This news release contains forward-looking statements, which relate to future events or future performance and reflect management’s current expectations and assumptions. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward-looking statements are neither promises nor guarantees and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in Canada (available at www.sedar.com)
SOURCE: Gratomic Inc.
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