JV Provides Capex & Operational Funding to Process On-Site Graphite
NEW YORK, NY and WINDHOEK, NAMIBIA / ACCESSWIRE / July 21, 2015 / Next Graphite, Inc. (GPNE) ("Next Graphite," "GPNE" or the "Company"), an exploration/development stage company in Africa's Republic of Namibia targeting the growing global graphite production industry and market demand, today announced a joint-venture agreement ("JV") with Micron Investments PTY, Ltd. (“Micron”).
Micron is a private, Namibia-based company with expertise in geology, engineering, mining, funding and marketing of commodities. Under the JV with Next Graphite, Micron has agreed to fund a facility to process, test, and commercialize Next Graphite's on-site 140,000 tonne heaps. Additionally, the companies will explore existing adits and visible graphite veins on the property which are expected to provide Next Graphite with significant additional inventory.
Micron has committed seven-figure funding to design, engineer, procure, build and staff a 2,500 tonnes per annum natural flake graphite screening and processing facility with the ability to scale up to 10,000 tonnes per annum. The facility and its engineering plans were reported by the Company through its Preliminary Economic Analysis ("PEA") on April 28, 2015. The two companies will initiate ground preparation work and announce a date in the coming months to build and complete the processing facility. As part of the agreement, Micron is also providing GPNE working capital into the second half of 2016 until the processing plant is up and running. Micron will recover its investment through a farm-out agreement with the Company.
As reported by the Company during the course of its six-month sampling, testing, and grading program in 2014, graphite contained in the Company's existing heaps can achieve a 96.0% grade through a flotation process. Included below are the test results from Gecko Laboratories, Namibia, on the analysis conducted on samples from delivered to Gecko's lab in Swakopmund, Namibia.
Dr. Roger Moss, CEO of Micron added, "We are excited to be entering into this JV with Next Graphite and looking forward to advancing work on the Aukam graphite project with plans to move it into production in the near term."
About Next Graphite, Inc.
Next Graphite, Inc. is an exploration/development stage company targeting the growing global graphite production industry with the Company's 125,000-acre Africa-based Aukam Graphite Project. The Aukam Graphite Mine was established in 1940 in the current Republic of Namibia, produced USD$30 million of graphite at today's prices. The Graphite property is estimated to still contain a significant amount of high grade, vein type graphitic material. Global graphite demand is being driven by the development of new markets for clean and efficient energy alternatives, smart grid infrastructure and military capabilities. Next Graphite has an immediately available, surface-visible, estimated 140,000-tonne mine heaps along with competitive projected mining and processing costs. The completion of GPNE's Aukam Graphite Mine re-launch and development activities are expected to result in a multi-million dollar inward investment into Namibia.
For more information, please visit: www.nextgraphite.com.
About Micron Investments PTY, Ltd.
Micron is a private Namibia-based company with expertise in geology, engineering, mining, funding and marketing of commodities. Micron's principals have significant experience in Namibia and beyond in mining exploration and development.
Safe Harbor Statement
This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Next Graphite Inc.'s management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Such statements include, among others, those concerning market and industry segment growth and demand and acceptance of new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in Africa, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements. Among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in Africa, general economic conditions; geopolitical events and regulatory changes, availability of capital, the Company's ability to maintain its competitive position and dependence on key management. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
SOURCE: Next Graphite, Inc.