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Focus Graphite (TSX VENTURE:FMS) Files Lac Knife Graphite Project Feasibility Study T

Discussion in 'Stock Market News & Analysis' started by mickymoose99, Aug 8, 2014.

  1. mickymoose99

    mickymoose99 Member

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    Focus Graphite (TSX VENTURE:FMS) Files Lac Knife Graphite Project Feasibility Study Technical Report

    Weighs lower-cost options for tandem financing of mine/plant and purification facilities for high value "battery grade" graphite production


    OTTAWA, ONTARIO--(Marketwired - Aug. 8, 2014) - Focus Graphite Inc. ("Focus" or the "Company") (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) sole owner of the Lac Knife, Quebec high purity graphite deposit announced today that the Feasibility Report prepared in accordance with National Instrument 43-101and with form 43-101F1 will be filed under the Company's SEDAR profile on Friday August 8th, 2014 at www.sedar.com and on Focus' website (www.focusgraphite.com).

    The Feasibility Study was prepared by Met-Chem Canada Inc. with contributions from AGP Mining Consultants, Journeaux Associates and Golder Associates.

    Don Baxter, Focus' President and Chief Operating Officer said: "With the Feasibility Study now completed, we continue to de-risk the project by focusing on key, near to mid-term milestones, including: detailed engineering, project financing, and the permitting process.

    "In particular," he added, "the Feasibility Study opens the door to another level of available financing.

    "We are evaluating options to secure project financing that will enable us to advance the Lac Knife mine and plant construction."

    Mr. Baxter said discussions with potential offtake partners are ongoing and will complement the existing 10-year offtake signed in December, 2013.

    The highlights of the Feasibility Study, as reported June 25, 2014:

    Table 1 Lac Knife Feasibility Results (Pre-Tax) Base Case 2016 Forecast Units Average Price / Tonne of Concentrate: $1,713 $2,256 US$ Internal Rate of Return (IRR) 30.1 41.8 % Net Present Value @ 6% Discounted Cash Flow 510 809 $ million Net Present Value @ 8% Discounted Cash Flow 383 624 $ million Net Present Value @ 10% Discounted Cash Flow 291 488 $ million Payback Period 3.0 2.1 Years Lac Knife Feasibility Results (After-Tax) Base Case 2016 Forecast Units Internal Rate of Return (IRR) 24.1 32.8 % Net Present Value @ 6% Discounted Cash Flow 304 476 $ million Net Present Value @ 8% Discounted Cash Flow 224 364 $ million Net Present Value @ 10% Discounted Cash Flow 165 280 $ million Payback Period 3.2 2.4 Years All monetary values are in Canadian Dollars ("CDN") except where specified otherwise

    Of note is that average prices used in the financial model do not include value added products produced using the typically lower valued finer natural flake graphite.

    Background:

    The Feasibility Study was conducted with engineering and estimation methods appropriate to target an accuracy of 15% that is standard and realistic for capital and operating cost estimates for this level of study, that is required prior to detailed engineering, and well beyond the +/- 30% accuracy of a Preliminary Economic Assessment (PEA). Based on an extensive risk review exercise the contingency is 11.5%. Capital Expenditures in Table 2 itemize cost requirements for mine construction, processing plant, power line and all associated infrastructure estimated at $165.55 million.

    Table 2 Lac Knife Capital Expenditure - Cost Centers CDN$ millions Mine equipment, infrastructure, and pre-stripping 4.21 Infrastructure 11.62 Primary Crushing 7.02 Concentrator 62.24 Environmental and Tailings Management 8.22 Additional Infrastructure 15.4 Indirect Costs 39.77 Contingency (11.5%) 17.07 Sub Total 165.55

    The company is continuing discussions with vendors to define financing packages for equipment. The company's aim is to reduce up front capital and add to the basket of financing options currently being investigated. Discussions and due diligence continue regarding Supply Chain Financing ("SCF") based on the offtake agreement signed in December, 2013 for a minimum of 50% of Lac Knife's production over the life of a 10-year agreement. SCF is a non-dilutive alternative to equity financing and is less encumbering than traditional debt, or royalty financing.

    Future off-take agreements will contain a financial component. This project-financing alternative could include equity and low interest debt as well as a signing bonus to execute an offtake agreement. The various options discussed above have the potential to enhance future project economic evaluation metrics, and the company continues these discussions with several interested parties.

    Qualified Persons

    The technical information within this news release was approved by Project Leader Mary-Jean Buchanan Eng., and Jeffrey Cassoff Eng., Lead Mining Engineer, and Ewald Pengel P. Eng., Senior Metallurgist, who was responsible for concentrator design, of Met-Chem Canada Inc. all Qualified Persons under NI 43-101 guidelines and independent of the issuer. Pierre Desautels, P.Geo., of AGP Inc. completed the NI- 43-101 Mineral Resource Estimate and is independent of the issuer.

    The technical information in this news release was prepared by Mr. Don Baxter, P. Eng., Focus President & Chief Operating Officer, a Qualified Person as defined by NI 43-101 guidelines, who has reviewed and approved the technical content of this news release.

    About Focus Graphite

    Focus Graphite Inc. is an emerging mining development company with an objective to produce value added products initially for the lithium ion battery market from the Lac Knife graphite deposit located south west of Fermont, Québec. The Lac Knife project hosts a NI 43-101 compliant Measured and Indicated Mineral Resource Estimate* of 9.6 million tonnes grading 14.77% graphitic carbon (Cg) as natural flake graphite with an additional Inferred Mineral Resource Estimate* of 3.1 million tonnes grading 13.25% Cg. Focus' goal is to assume an industry leadership position by becoming a low-cost producer of technology-grade graphite. The Feasibility Study filed with SEDAR on August 8, 2014 for the Lac Knife Project indicates the project is economically viable and has the potential to become a low cost graphite producer based on 7.86 million tonnes (429,000 tonnes Proven and 7,428,000 tonnes Probable) of Proven and Probable Reserves grading 15.13 Cg. On May 27, 2014 the Company announced the Potential for High Value Added Sales in the Li-Ion Battery Sector following battery coin cell tests performed on Lac Knife Spherical Graphite ("SPG"). Testing measured the performance metrics and confirmed Focus' capability to tailor lithium ion battery anode grade graphite and value added products to meet the most stringent customer specifications. Focus Graphite is a technology-oriented enterprise with a vision for building long-term, sustainable shareholder value. Focus also holds a significant equity position in graphene applications developer Grafoid Inc
     
  2. mickymoose99

    mickymoose99 Member

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    Focus Graphite (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) Announces Additional Deb

    Focus Graphite (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) Announces Additional Debt Financing Interest in Lac Knife




    OTTAWA, ONTARIO--(Marketwired - Feb. 24, 2015) - Focus Graphite Inc. (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) ("Focus" or the "Company") is pleased to announce that FLSmidth ("FLS") has expressed its formal interest to further evaluate the Company's Lac Knife Project in order to provide Focus with a "One Source" solution of engineering & technical services and supply of mineral processing equipment.

    The initial set of Lac Knife mineral processing equipment being proposed by FLS bears a feasibility study level cost estimate of $12 million. The project scope may include a second component at a later date associated with dewatering, filtration, and conveyance equipment used for the de-watering and dry-stacking of tailings.

    Focus included this revised tailings management system in the Environmental and Social Impact Assessment report filed in November 2014 in order to reduce the environmental footprint of Lac Knife's general site layout.

    FLSmidth, is a Danish multinational global corporation with annual revenues in excess of 3.6 billion euros, and is a leading supplier of mineral processing equipment and mining services and is specialized in dry-stacked tailings management.

    "FLS's Letter of Interest represents another significant potential financing option as the Company develops the Lac Knife Structured Project Financing," said Don Baxter, Focus Graphite President and Chief Operating Officer.

    FLS has introduced the Lac Knife project to the Danish Export Credit Agency ("EKF") and the project may be eligible for EKF credit support. An EKF guarantee is backed by the Danish State, and as such, the EKF loan guarantee can be considered as AAA-rated. "Both parties are discussing this financing option with a view to achieving a mutually satisfactory conclusion."

    "This potential debt facility represents 7% of Lac Knife's total project financing requirements, raising the total of potential vendor financing to approximately 20%. Terms of a debt facility are to be negotiated and a comprehensive disclosure will be released at a later date."

    This announcement follows the Caterpillar Structured Finance announcement on January 6th, 2015. Focus is continuing project-financing discussions with various stakeholders, investors, and institutional funds in both the public and private sector with the objective of minimizing shareholder dilution through a mix of debt and equity financing.

    On August 8th, 2014 Focus Graphite published its Lac Knife Project Feasibility Study that included a mine and concentrator operation with a capital expenditure requirement of $165.6 million including a $17.1 million contingency.

    Qualified Person
    The technical information in this news release was prepared, reviewed and approved by Mr. Don Baxter, P. Eng., Focus President & Chief Operating Officer, and a Qualified Person as defined by NI 43-101 guidelines.

    About FLSmidth

    Established in Denmark in 1882, FLSmidth supplies the minerals and cement industries globally with engineering, single machines and complete processing plants, maintenance, support services and operation of processing facilities. Its core strengths are reflected in its market-leading product range, its ability to implement, manage and maintain projects, and its operation of minerals and cement processing plants worldwide. FLSmidth employs some 15,000 in more than 50 countries, including Canada.

    About Focus Graphite

    Focus Graphite Inc. is an emerging mining development company with an objective to produce value added products initially for the lithium ion battery market from the Lac Knife graphite deposit located south west of Fermont, Québec. The Lac Knife project hosts a NI 43-101 Measured and Indicated Mineral Resource Estimate* of 9.6 million tonnes (432,000 tonnes Measured and 9,144,000 tonnes Indicated) grading 14.77% graphitic carbon (Cg) as natural flake graphite with an additional Inferred Mineral Resource Estimate* of 3.1 million tonnes grading 13.25% Cg. Focus' goal is to assume an industry leadership position by becoming a low-cost producer of technology-grade graphite. The Feasibility Study filed with SEDAR on August 8, 2014 for the Lac Knife Project indicates the project is economically viable and has the potential to become a low cost graphite producer based on 7.86 million tonnes (429,000 tonnes Proven and 7,428,000 tonnes Probable) of Proven and Probable Reserves grading 15.13 Cg. On May 27, 2014 the Company announced the Potential for High Value Added Sales in the Li-Ion Battery Sector following battery coin cell tests performed on Lac Knife Spherical Graphite ("SPG"). Testing measured the performance metrics and confirmed Focus' capability to tailor lithium ion battery anode grade graphite and value added products to meet the most stringent customer specifications. Focus Graphite is a technology-oriented enterprise with a vision for building long-term, sustainable shareholder value. Focus also holds a significant equity position in graphene applications developer Grafoid Inc.
     
  3. mickymoose99

    mickymoose99 Member

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    Focus Graphite (TSX VENTURE:FMS) Closes First Tranche of Offering

    Focus Graphite (TSX VENTURE:FMS) Closes First Tranche of Offering





    Focus Graphite Inc. (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) ("Focus" or the "Company") announces today the closing of the first tranche of its previously announced private placement (the "Offering") for gross proceeds of $2,051,758.10 (see Company's news release dated March 2nd, 2015 for more details on the Offering). In total, the Company has issued 5,862,166 units (the "Units") at a price of $0.35 per Unit, each Unit being comprised of one (1) common share of the Company and one half (1/2) of one common share purchase warrant (each whole warrant a "Warrant") with each Warrant entitling the holder thereof to acquire one (1) additional common share of the Company at a price of $0.55 per share until March 13, 2017.

    Stormcrow Capital Ltd. ("Stormcrow"), an exempt market dealer headquartered in Toronto (Ontario) acting as agent in connection with the Offering, received a cash commission equal to $143,623 and 410,351 non-transferable broker warrants, each broker warrant entitling Stormcrow the right to acquire one (1) common share of the Company at a price of $0.35 per share until March 13, 2017.

    The Company anticipates proceeding shortly with the closing of the second tranche of the Offering and has received thus far several expressions of interest in this regard.

    The securities issued in connection with the closing of the first tranche of the Offering are subject to a four-month hold period expiring on July 14, 2015. The Offering is subject to the final approval of the TSX Venture Exchange.

    The securities offered pursuant to the Offering will not be registered under the United States Securities Act of 1933 (the "Act") and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Act.

    About Focus Graphite

    Focus Graphite Inc. is an emerging mining development company with an objective to produce value added products initially for the lithium ion battery market from the Lac Knife graphite deposit located south west of Fermont, Québec. The Lac Knife project hosts a NI 43-101 Measured and Indicated Mineral Resource Estimate* of 9.6 million tonnes (432,000 tonnes Measured and 9,144,000 tonnes Indicated) grading 14.77% graphitic carbon (Cg) as natural flake graphite with an additional Inferred Mineral Resource Estimate* of 3.1 million tonnes grading 13.25% Cg. Focus' goal is to assume an industry leadership position by becoming a low-cost producer of technology-grade graphite. The Feasibility Study filed with SEDAR on August 8, 2014 for the Lac Knife Project indicates the project is economically viable and has the potential to become a low cost graphite producer based on 7.86 million tonnes (429,000 tonnes Proven and 7,428,000 tonnes Probable) of Proven and Probable Reserves grading 15.13 Cg. On May 27, 2014 the Company announced the Potential for High Value Added Sales in the Li-Ion Battery Sector following battery coin cell tests performed on Lac Knife Spherical Graphite ("SPG"). Testing measured the performance metrics and confirmed Focus' capability to tailor lithium ion battery anode grade graphite and value added products to meet the most stringent customer specifications. Focus Graphite is a technology-oriented enterprise with a vision for building long-term, sustainable shareholder value. Focus also holds a significant equity position in graphene applications developer Grafoid Inc.
     
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