Mason Graphite Provides Corporate Update
2013-10-02 - News Release
Mr Benoit Gascon reports
Mason Graphite Inc. has provided an update on its recent corporate developments.
Recent and upcoming milestones
Since acquiring the Lac Gueret project in April, 2012, Mason Graphite has achieved the following important milestones that are critical to advancing the project toward the development of a mine.
Recent milestones:
- Acquisition of Lac Gueret project (April, 2012);
- TSX Venture Exchange listing (October, 2012);
- Completion of a 26,500-metre drilling program (2012);
- Completion of an initial National Instrument 43-101 mineral resource estimate (July, 2012);
- Results from initial metallurgical testwork (February, 2013) -- see press release dated Feb. 22, 2013:
- Graphite recoveries in excess of 96 per cent;
- 29 per cent large flake graphite;
- 96.3 per cent concentrate purity (plus 150 mesh cumulative);
- Completion of a preliminary economic assessment (April, 2013):
- 22 years of production at 27.4 per cent Cgr (LOM);
- Direct capital costs of $89.9-million;
- Production costs of $390 per tonne;
- Completion of a $5-million financing (June, 2013);
- $24,233,210 raised since April, 2012;
- Receipt of purification test results (September, 2013).
The company expects to complete a number of important derisking events in the upcoming months, including the initiation of a definitive feasibility study and piloting program. Mason Graphite also intends to initiate the permitting process for the Lac Gueret project by filing an environmental baseline study.
Expected upcoming milestones:
- Update of the mineral resource estimate and the National Instrument 43-101 technical report for the Lac Gueret project;
- Completion of a 15,000-metre drilling program;
- Receipt of results from more detailed metallurgical testwork;
- Completion of feasibility study and pilot program;
- Advancement of permitting, including the completion of the environmental baseline study.
Benoit Gascon, president and chief executive officer of Mason Graphite, commented: "The recent developments at our Lac Gueret project have all either met or exceeded our expectations. This is very encouraging to us and the speed at which we have been able to advance the project speaks to the quality of our asset and of our experienced team members. We believe that our project has world-class potential and we will continue to work diligently to advance the project and achieve our objective of becoming a graphite producer as quickly as possible."
Extension of October, 2013, warrants
Mason Graphite has applied to the TSX Venture Exchange to extend the term of 12,614,989 common share purchase warrants previously set to expire on Oct. 30, 2013, to Oct. 30, 2014. Each warrant is exercisable for one common share in the capital of the company for an exercise price of $1. Under the amended terms of the warrants, if at any time after Oct. 30, 2013, the common shares of the company trade at or above $1.40 per share (on a volume weighted adjusted basis) for a period of 30 consecutive days, the company will have the right to accelerate the expiry date of the warrants to the date that is 30 days after the company issues a news release announcing that it has elected to exercise this acceleration right.
Investor relations engagement
Mason Graphite has engaged Proactiveinvestors to provide investor relations services to the company. Proactiveinvestors is a leading multimedia news organization, investor portal and events management business with offices in New York, Sydney, Perth, Toronto, Calgary, Vancouver and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, commentary and analysis on hundreds of listed companies across the globe daily. The company has agreed to pay Proactiveinvestors $1,250 per month for a period of 12 months. The agreement is subject to the approval of the TSX Venture Exchange.
Non-brokered private placement
Mason Graphite has launched a non-brokered private placement financing of 155,000 common shares of the company at a price of 40 cents for total gross proceeds equal to $62,000. The common shares issued pursuant to the financing will be subject to a hold period of four months and one day. The financing is fully subscribed for, but remains subject to the approval of the TSX Venture Exchange. The proceeds of the financing will be used for general corporate purposes.
Qualified person
Jean L'Heureux, Eng, Mason Graphite's executive vice-president of process development and a qualified person as defined by National Instrument 43-101, has reviewed and approved the scientific and technical content of this press release.
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