AUGUST 27, 2013 - Calgary, Alberta ? Graphite One Resources Inc.
(GPH: TSX-V; GPHOF: OTCQX) (?Graphite One? or the
?Company?)
is pleased to announce that, subject to TSX Venture Exchange
approval, the Company intends to complete a non-brokered private
placement to raise gross proceeds of up to $2.2 million by the
issuance of 27,500,000 units (the ?Units?) of the Company at a
price of $0.08 per Unit. Each Unit will consist of one
common share and one non-transferable common share purchase warrant
(a ?Warrant?). Each
Warrant will entitle the holder to purchase one additional common
share of the Company at a purchase price of $0.125 per share for a
period of 36 months from the date of closing (the ?Closing Date?)
subject to acceleration as described below.
In the event that, following the restricted period that expires
four months from the date of issuance, the average volume weighted
average price of the common shares of the Company is greater than
$0.225 per share for any period of 21 consecutive trading days
during the term of the Warrant, the Company may at its sole option,
provide notice of such event to the holders of any outstanding
Warrants and thereafter the outstanding Warrants will expire and
cease to be exercisable on the date which is 45 calendar days after
the notice is deemed delivered to the holders of the Warrants by
the Company.
The proceeds will be used for exploration and development of the
Company?s Graphite Creek project and for general working capital
purposes.
Closing of the private placement is anticipated to occur on or
before September 15, 2013 and is subject to receipt of applicable
regulatory approvals including approval of the TSX Venture
Exchange. All
securities issued in connection with the private placement will be
subject to a restricted period that expires four months following
the date of issuance. The Company may pay a finder?s fee
in cash and/or securities in connection with certain subscriptions
on terms to be negotiated by the Company.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in the United
States. The securities have not been and will not be registered
under the United States Securities Act of 1933, as amended (the
?U.S. Securities Act?) or any state securities laws and may not be
offered or sold within the United States or to U.S. Persons unless
registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is
available.
The Graphite Market
China currently produces approximately 70% of the world?s graphite
(world production is approximately 1,100,000 tonnes of which
400,000 is flake graphite) and has recently restricted exports by
instituting an export tax. As well, the Chinese government
has banned any new graphite plants and imposed strict environmental
regulations on existing plants in Qingdao. A state owned amorphous graphite
monopoly has been formed which will consolidate 210 amorphous
graphite mines down to 20 and will reduce production capacity from
600,000 to 510,000 tonnes per year. The implementation of these new
rules and standards will make graphite mines much more difficult to
build and/or operate in China.
Recently, South Graphite, which was formed in 2011 to consolidate
all the amorphous graphite resources in Hunan, China (which is the
world?s largest graphite producer) and has a total production
capacity of approximately 200,000 tonnes per annum.
Graphite is
an allotrope of carbon along with diamonds and coal. Graphite is the best known
conductor of heat and electricity. Graphite and graphite powder are
valued in industrial applications for their self-lubricating and
dry lubricating properties. It maintains its strength and
stability to temperatures in excess of 3,000?C and is resistant to
chemical attack.
Graphite demand was historically driven by the steel and automotive
industries. Due to the
industrialization of BRIC (Brazil, Russia, India, China) economies,
Graphite demand has steadily increased by 5% per annum since 2000.
Global graphite demand
is growing rapidly and is expected to continue based on new
applications and green technologies, including but not limited to:
hybrid-electric vehicles (HEVs); plug-in hybrid-electric vehicles
(PHEVs); battery-electric vehicles (BEVs); fuel cells; Lithium-Ion
Batteries; Pebble Bed Nuclear Reactors; lubricants and
Graphene.
As global
demand grows, graphite prices have increased substantially, more
than doubling over the past three years.
Both the European
Union and the United States have declared graphite a supply
critical mineral.
About Graphite Creek
The Graphite Creek Property comprises 129 claims totaling 6,799
hectares on the Seward Peninsula of Alaska, 65 kilometres north of
Nome. Mineralization at the Graphite Creek Property is
characterized by coarse crystalline (large flake) graphite (greater
than 80 mesh) within graphite-bearing schist(s). Graphite
mineralization is exposed at surface. The large flake graphite
occurs as disseminations and high grade segregations and lenses in
distinctive sillimanite-garnet-quartz-biotite schist(s) and/or
quartz-biotite schist(s). The host schist(s) is continuous over 18
kilometres of strike length, based on mapping, sampling and
airborne geophysics. Please refer to the January 21, 2013 press
release where Graphite One reports the filing of a NI43-101
Technical Report with an inferred resource of 164.5 million tonnes
at 4.61% graphite (including 25.44 million tonnes at 9.69% graphite
and 7.8 million tonnes at 13.49% graphite).
During 2011, Graphite One tested 3 samples from surface at the
Graphite Creek area (where the 2012 drilling was focused) for flake
size analysis. The
samples analyzed included: (1) high grade rock grab samples
(assayed 56.9%C); (2) mixed grade rock grab samples (disseminated
and high grade material mixed (assayed 14.5%C)); and (3) rock grab
samples with disseminated graphite (assayed 8.2% C). From these samples, 84.3%; 93.6%
and 76.5% of graphite recovered are large flakes respectively
(greater than 80 mesh). Specifically, the majority of the
recovered graphite in the samples is considered to be large
flake. Furthermore,
the majority of the large flake graphite is greater than 40 mesh
(64.8%, 65.8% and 73.3%, respectively) and is considered Jumbo
Flake. The analytical
work was conducted at Hazen Laboratories, Co, USA.
During 2012, Graphite One tested 4 samples from drill core for
flake size analysis.
The samples analyzed contained 8.7%, 13.7%, 14.9% and 8.0% Cg,
respectively. From
these samples 62.9%, 70%, 63.9%, and 59.3%* of the graphite
recovered are large flakes (*samples were crushed to 10 mesh so
results may be understated because the 2011 samples contained up to
10.5% +10 mesh material). The analytical work was conducted
at Hazen Laboratories, Co, USA. Based on the 2011 and 2012 tests,
the Graphite Creek Property is known to be a flake graphite deposit
whereby the majority of the flake is considered to be large
flake.
About Graphite One Resources Inc.
GRAPHITE ONE RESOURCES INC. (GPH: TSX-V; GPHOF: OTCQX) is a
mineral exploration company with extensive experience in the state
of Alaska and a business strategy to identify, acquire, and explore
high potential projects ready for rapid advancement. The Graphite
Creek Property on the Seward Peninsula of Alaska fits with the
Graphite One business strategy offering significant potential for
the discovery and development of a large flake, graphite deposit
exposed at surface. Graphite One has an option to earn a 100%
interest in the Graphite Creek Property.
Dean Besserer, P.Geol., Vice President of Exploration for the
Company and a ?Qualified Person? under NI 43-101, is responsible
for and has reviewed and approved the technical content of this
press release.
ON BEHALF OF THE BOARD OF DIRECTORS
(signed)
"Charles Chebry?
For more information on Graphite One Resources Inc. please visit
the Company?s website,
www.GraphiteOneResources.com
or contact:
Anthony Huston
President & Director
Tel: (604) 697-2862
Email:
AnthonyH@GraphiteOneResources.com
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.
This release includes certain statements that may be deemed to be
forward-looking statements. All statements in this release, other
than statements of historical facts that address access to capital,
regulatory approvals, exploration drilling, exploitation activities
and events or developments that the Company expects, are
forward-looking statements. Although the Company believes the
expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of
future performance and actual results or developments may differ
materially from those in the forward-looking statements. Factors
that could cause actual results to differ materially from those in
forward-looking statements include the Company being unable to
complete the private placement on the terms contemplated or at all,
market prices, exploitation and exploration successes, continuity
of mineralization, uncertainties related to the ability to obtain
necessary permits, licenses and title and delays due to third party
opposition, changes in government policies regarding mining and
natural resource exploration and exploitation, and continued
availability of capital and financing, and general economic, market
or business conditions. Readers are cautioned not to place undue
reliance on this forward-looking information, which is given as of
the date it is expressed in this press release, and the Company
undertakes no obligation to update publicly or revise any
forward-looking information, except as required by applicable
securities laws. For more information on the Company, investors
should review the Company's continuous disclosure filings that are
available at
www.sedar.com.
The mineral resource estimates reported in this press release were
prepared in accordance with Canadian National Instrument 43-101
Standards of Disclosure for Mineral Projects (?NI 43-101?), as required by
Canadian securities regulatory authorities. For United States
reporting purposes, the United States Securities and Exchange
Commission (?SEC?) applies different
standards in the classification of mineralization. In particular,
while the terms ?measured,? ?indicated? and ?inferred? mineral
resources are required pursuant to NI 43-101, the SEC does not
recognize such terms. Canadian standards differ significantly from
the requirements of the SEC. Investors are cautioned not to assume
that any part or all of the mineral deposits in these categories
constitute or will ever be converted into reserves. In addition,
?inferred? mineral resources have a great amount of uncertainty as
to their existence and great uncertainty as to their economic and
legal feasibility. It cannot be assumed that all or any part of an
inferred mineral resource will ever be upgraded to a higher
category. Under Canadian securities laws, issuers must not make any
disclosure of results of an economic analysis that includes
inferred mineral resources, except in rare cases.
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