TSX-V: GRAT
TORONTO, Oct. 24, 2019 /CNW/ - Gratomic Inc.
("Gratomic" or the "Company") (TSX-V: GRAT) (CB81–FRANKFURT;
WKN:A143MR) a vertically integrated graphite to graphenes,
advanced materials development company is pleased to provide
further updates from its Aukam Graphite Project in Namibia.
The Company is pleased to report that is has completed the
crushing and grinding circuit which has a 50 metric tonnes per hour
capacity. The Company also completed the installation and setup of
the Processing Plant's Rougher, Cleaner and Scavenger flotation
columns. The cumulative capacity of the columns combined with
the Rougher Mixing Tank and slurry line is initially 2.8 tonnes per
hour.
To date the Company has put 178 tonnes of product through the
existing pilot plant systematically increasing the grade to
commercially desirable 95% - 97% Cg (Carbon in Graphite). It has further indicated
that it is able to upgrade this material through air classification
to over 99% Cg.
Operationally, the Company has decided to put on hold an updated
drying circuit pending financing of the Company. The drying circuit
will be shipped to Namibia after
the final payment of CAD $75,000 is
made and will arrive within 39 days of the payment. The Company has
decided to delay this upgrade in the short term in order to
preserve available capital and will utilize the existing drying
circuit which can manage the material drying requirements in the
interim.
The Company has entered into an agreement with VIVO Shell in
July of 2019 (the "Agreement") to invest N$ 700,000 into the
construction of a bulk 50,000 litre fuel storage facility that will
be erected at the Aukam Fuel depot located within 1.2 km from the
mine site. The Company is also in discussions with Namibia's largest mining contractor "LEWCOR"
and is reviewing plans to initiate mining and earth moving
operations.
In preparation of product sales, a total of 350 tonnes of
graphitic material has been stockpiled at the processing site ready
for beneficiation. During the first two months of the LEWCOR
contract, the stockpile will be further increased to 5,000 tonnes
from available surface mine dumps which contain approximately
23,000 tonnes of graphitic material.
Management will be curtailing ongoing mining costs by
temporarily reducing non-critical staff until the completion of a
financing. The Company sees this as a positive means to decrease
monthly capital requirements by approximately 75%. All staff
has been paid up to date with salaries being supported primarily
through capital injection by the company's two CEOs. The
non-critical mine staff that are not directly affiliated with mine
construction will be rehired upon the completion of a financing to
resume mining and processing activities.
Risk Factors
The Company advises that it has not based its production
decision on even the existence of mineral resources let alone on a
feasibility study of mineral reserves, demonstrating economic and
technical viability, and, as a result, there may be an increased
uncertainty of achieving any particular level of recovery of
minerals or the cost of such recovery, including increased risks
associated with developing a commercially mineable deposit.
Historically, such projects have a much higher risk of economic
and technical failure. There is no guarantee that production will
begin as anticipated or at all or that anticipated production costs
will be achieved.
Failure to commence production would have a material adverse
impact on the Company's ability to generate revenue and cash flow
to fund operations. Failure to achieve the anticipated production
costs would have a material adverse impact on the Company's cash
flow and future profitability.
Qualified Persons
Steve Gray, P. Geo. has reviewed,
prepared and approved the scientific and technical information in
this press release and is Gratomic Inc's "Qualified Person" as
defined by National Instrument 43-101 - Standards of Disclosure for
Mineral Projects.
About Gratomic Inc.
Gratomic is an advanced materials company focused on mine to
market commercialization of graphite products most notably high
value graphene-based components for a range of mass market
products. The Company has a JV collaborating with
Perpetuus Carbon Technology, a leading European
manufacturer of graphenes, to use Aukam graphite to
manufacture graphene products for commercialization on an
industrial scale. The Company is listed on the TSX
Venture Exchange under the symbol GRAT.
"Neither 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."
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).
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SOURCE Gratomic