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- Up to $6.225 million, interest-free repayable contribution will assist in financing continued production at North America's only operating graphite mine
- Funding supports Canada's critical minerals strategy and Northern's plans to boost domestic supply
Northern Graphite Corporation (TSXV: NGC) (OTCQB: NGPHF) (FSE: 0NG) (XSTU:0NG) (the "Company" or "Northern") is pleased to announce that the Canadian government has agreed to provide a repayable contribution of up to $6.225 million to support extending the life of the Company's cornerstone Lac des Îles ("LDI") graphite mine in Quebec.
The interest-free and unsecured contribution, provided by Natural Resources Canada ("NRCan") and delivered by The Economic Development Agency of Canada for Quebec Regions ("CED"), under the Regional Economic Growth Through Innovation Program, will finance 75% of the eligible costs for the pit extension at LDI to support continued production from North America's only operating graphite mine. The assistance is being provided at a time when Canada is vying to establish itself as a sustainable supplier of critical minerals to the Western world.
"We are thrilled to receive this foundational support from the Canadian government which will help keep the mine in operation and continuing to supply our loyal customer base in industrial markets as well as to pursue our goal of becoming a key supplier to growing defence and battery markets in North America and further afield," said Northern Chief Executive Officer Hugues Jacquemin. "Lac des Îles is the cornerstone of our growth strategy, and this support shows that Canada is serious about turning its critical mineral potential into global leadership."
"We are in conversations with other parties to finance the remaining cost of the mine extension and hope to be able to announce something soon," added Mr. Jacquemin.
LDI, located about 150 km northwest of Montreal, Quebec, is Northern's flagship operation, producing approximately 15,000 tonnes of graphite concentrate per year with installed capacity of 25,000 tonnes per year. The mine has long served traditional markets - from refractories for steelmaking to heat management in electronics and friction materials for the global automotive sector. As widescale electrification proceeds under the energy transition, the availability of graphite is forecast to tighten sharply as demand rises, especially to manufacture lithium-ion batteries, where it is the largest critical mineral component.
"Our government is committed to investing in our industries, which will build a strong and secure economy. This investment in Northern Graphite's operations in Lac-des-Îles will strengthen Canada's domestic critical mineral supply chains, while positioning us as a global leader in the sector. This project will have tangible economic impacts for Quebec workers and our communities," said The Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions.
"Canada is a global leader in providing the responsibly sourced critical minerals essential for energy, digital technologies and national defence," said The Honourable Tim Hodgson, Minister of Energy and Natural Resources. "This strategic investment in the Northern Graphite expansion project will enable the production of these minerals and strengthen our economy and security while keeping good jobs in Quebec — a win-win for the province and the entire country."
The funding will assist the Company in avoiding putting LDI on care and maintenance at the end of 2025 and allows Northern to immediately begin work on extending the existing pit. The goal is to break ground as soon as possible to ensure a continuous flow of material to the plant and first production from the new zones could take place in approximately six- to eight months. In the interim, Northern will continue supplying customers by processing ore from existing pit and ore stockpiles through the third quarter and fulfilling orders from inventory thereafter. Repayment of the contribution will commence thirty six months following the project completion date with 84 equal monthly instalment payments.
The pit extension is based on the LDI resource estimate published in January 2024 which shows potential to extend the life of the mine and supports the Company's plan to meet rising demand by permanently moving the LDI mill to a seven-days-per week operation, targeting annual nameplate capacity of 25,000 tonnes per year. A technical report in respect of the mineral resource estimate prepared in accordance with National Instrument 43-101 — Standards of Disclosure for Mineral Projects ("NI 43-101") was filed under the Company's profile on SEDAR+ (www.sedarplus.ca) on March 1, 2024.
Northern acquired LDI from Imerys in 2022 with the conviction that the mine had far greater potential than its then-published reserve life suggested which is supported by the last resource estimate. Since then, demand for the mine's high-purity, flake graphite has only increased, as global supply has been squeezed by Chinese export controls and production cuts.
Gregory Bowes, B.Sc. MBA P.Geo, the Chairman of Northern, is a "Qualified Person" as defined under NI 43-101 and has reviewed and approved the content of this news release.
About Northern Graphite
Northern is a Canadian, TSX Venture Exchange listed company that is the only flake graphite producing company in North America. Northern is focused on becoming a world leader in producing natural graphite and upgrading it into high-value products critical to the green economy, including anode material for lithium-ion batteries/EVs, fuel cells and graphene, as well as advanced industrial technologies. The Company's mine-to-battery strategy is spearheaded by its Battery Materials Group, which has a fully equipped, state-of-the-art laboratory in Frankfurt. Northern's graphite assets include the producing Lac des Îles mine in Quebec, where the Company is boosting output to meet growing demand from industrial customers and coming demand from North American battery makers. The Company also owns the large-scale, advanced stage Bissett Creek graphite project in Ontario and the fully permitted Okanjande graphite mine in Namibia, which is currently on care and maintenance, and represents an opportunity to substantially increase graphite production at a lower cost and with a shorter time to market than most competing projects. All projects have "battery quality" graphite and are located close to infrastructure in politically stable jurisdictions.
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For media inquiries, contact
Pav Jordan, VP of Communications
Email: pjordan@northerngraphite.com
For additional information
Please visit the Company's website at https://www.northerngraphite.com/home/, the Company's profile on www.sedarplus.ca our Social Channels listed below or contact the Company at (613) 271-2124.
Cautionary Note Regarding Forward-Looking Statements
This news release contains certain "forward-looking statements" within the meaning of applicable Canadian securities laws. Forward-looking statements and information are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "potential", "possible" and other similar words, or statements that certain events or conditions "may", "will", "could", or "should" occur. Forward-looking statements in this news release include statements regarding, among others, the Company's plans to extend the mine life of its LDI mine and development plans for its other projects including Bissett Creek. All such forward-looking statements are based on assumptions and analyses made by management based on their experience and perception of historical trends, current conditions and expected future developments, as well as other factors they believe are appropriate in the circumstances. However, these statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected including, but not limited to, unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of other parties to perform as agreed; social or labour unrest; changes in commodity prices; unexpected failure or inadequacy of infrastructure and the failure of ongoing and contemplated studies to deliver anticipated results or results that would justify and support continued studies, development or operations and the inability to raise required financing. Readers are cautioned not to place undue reliance on forward-looking information or statements.
Although the forward-looking statements contained in this news release are based on what management believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with them. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release.
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 news release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/263877
