Gratomic Provides Clarification Regarding its Signing of a Definitive Graphite Concentrate Sales Agreement and Exclusive Marketing Agent for Continental Europe
TSX VENTURE: GRAT
TORONTO, May 14, 2019 /CNW/ - Gratomic Inc. ("Gratomic" or the "Company") (TSX-V: GRAT) (CB81–FRANKFURT) a vertically integrated graphite to graphenes, advanced materials development company provides the following clarification to its most recent press release in which it disclosed the entering into of a definitive off take agreement for graphite concentrate to be produced from its Aukam Graphite mine ("Aukam") in Namibia ("Offtake Agreement").
Gratomic wishes to emphasize that Offtake Agreement is conditional on Gratomic being able to bring the Aukam into a production phase, and for any graphite being produced to meet certain technical and mineralization requirements.
Gratomic continues to move its business towards production and as part of its business plan, expects to obtain a National Instrument 43-101 Standards of Disclosure for Mineral Projects technical report to help it ascertain the economics of Aukam.
Presently the Company uses its existing pilot processing facility to produce certain amounts of graphite concentrate from accumulated surface graphite.
The Company advises that it has not based its production decision 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.
"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).