VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 26, 2017) - Graphite One Resources Inc. (TSX VENTURE:GPH)(OTCQX:GPHOF) ("Graphite One" or the "Company") announces it has extended the deadline by 4 years to buyout the 2% net smelter royalty applicable to certain of its mining claims in the State of Alaska purchased in January 2012.
By agreement dated January 24, 2012, the Company's wholly owned subsidiary, Graphite One (Alaska) Inc. ("AlaskaCo"), purchased from the holder of such claims (the "Seller") 28 mining claims in the State of Alaska subject to certain cash payments at closing and when producing, a 2% net smelter return royalty. AlaskaCo had the right to purchase the royalty within 3 years from the agreement date (on or before January 24, 2015) for $1 million (the "Royalty Purchase Option"). AlaskaCo then entered into an extension agreement effective January 24, 2015 (the "Original Extension") whereby the Royalty Purchase Option could have been exercised at any time on or before the earlier to occur of (1) January 24, 2017, or (2) the date that is six (6) months after the release by the Company or AlaskaCo of a "feasibility study" in exchange for the issuance by the Company of 769,231 common shares of the Company at an issue price of Cdn$0.13 per share.
The parties have now agreed to further extend the term of the Royalty Purchase Option and have entered into an extension agreement effective January 24, 2017 (the "New Extension") whereby the Royalty Purchase Option may be exercised at any time on or before January 24, 2021 in exchange for the issuance to the Seller of: (a) 1,666,667 common shares of the Company (the "Shares") at an issue price of Cdn$0.09 per share; and (b) 1,153,846 common share purchase warrants of the Company (the "Warrants"), whereby each Warrant may be exercisable at any time on or before January 24, 2021 at a price of Cdn$0.13 per share. The Shares and Warrants are subject to the acceptance of the New Extension by the TSX Venture Exchange Inc. and will be subject to a restricted period that expires four months and a day following the date of issuance.
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. Graphite mineralization mined from the Company's Graphite Creek Property would be processed into concentrate at a graphite processing plant. The 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 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 Graphite Creek Property contains America's largest known large flake graphite deposit. Resources identified to date include 10.32 million tonnes of indicated resources grading 7.2 percent graphitic carbon ("Cg") and 71.24 million tonnes of inferred resources at 7.0 percent Cg identified, using a 6% Cg mining cut-off grade. Work on the Graphite Creek Property is progressing through the evaluation phase with environmental baseline sampling programs and engineering studies in progress. Mineral processing testing, mine, infrastructure and processing plant design work, and a resource development drilling program are expected to be undertaken in the months ahead.
For more information on Graphite One Resources Inc. please visit the Company's website, www.GraphiteOneResources.com.
