High-Grade, Large-Flake, Graphite-Rich Territory and Previously-Producing Mining Operations Purchased in the Transaction
NEW YORK, NY and WINDHOEK, NAMIBIA -- (Marketwired) -- 04/03/14 -- Next Graphite, Inc. (OTCQB: GPNE) ("Next Graphite", or the "Company"), a development stage company targeting the growing global graphite production industry in Africa's Republic of Namibia, today announced the successful exercise of its option to purchase 100% of the Aukam Mine located on 125,000 acres in the graphite-rich Aukam property. The Aukam Mine and surrounding territories are located in southern Namibia's Karas Region, within the Betaine district, just to the north of South Africa.
As previously reported on its Form 8-K filed with the SEC on November 20, 2013, the Company's wholly-owned subsidiary African Graphite, Inc. ("AGI"), entered into a Stock Purchase Option Agreement dated November 14, 2013, with NMC Corp., a corporation organized under the laws of the Province of Ontario, Canada ("NMC"). NMC granted to AGI an option to purchase 90 ordinary shares, par value one Namibian dollar per share, of Gazania Investments Two Hundred and Forty Two (Proprietary) Limited ("Gazania"), representing 90% of the issued and outstanding shares of Gazania, for USD $240,000. Gazania currently holds an exclusive prospecting license that grants the right to conduct operations in the Aukam license area. The Aukam Mine is the only mine in Namibia which has produced graphite.
Under the Option Agreement, AGI was required to pay to NMC $90,000 as an advance payment to be credited towards the purchase price of the Gazania shares. The Company made the advance payment on November 14, 2013. The balance of the purchase price in the amount of $150,000 was paid by AGI upon exercise of the option that was completed on March 14, 2014. As a result, Gazania became a direct wholly-owned subsidiary of Next Graphite's 100% owned subsidiary, AGI.
"We have worked hard to reach this milestone and are pleased to have successfully closed this transaction," began Cliff Bream, CEO of Next Graphite, Inc. "We are currently negotiating the transfer of Aukam's Exclusive Prospecting License #3985 to Next Graphite which we anticipate will also close in the very near future. With both milestones met, we will begin with a new round of studies and geology which are supported by years of previous production results since the territory was actively mined from 1940. We are eager to reconfirm the high grade of what our consultants have described as the territory's natural, large-flake, hydrothermal-sourced graphite throughout the license area and that of the graphite which we have in our existing stockpile. Based on our consultants' initial estimates and previous geology, it is estimated that the territory contains approximately 4 million tons of graphite reserves."
About Next Graphite, Inc.:
Next Graphite, Inc. is a development stage company targeting the growing global graphite production industry with the Company's 125,000-acre Africa-based Aukam Graphite Mine. The Aukam Graphite Mine was established in 1940 in the current Republic of Namibia, produced USD$30 million of graphite at today's prices, and is estimated to hold over 4 million tons of natural, high-grade, large-flake, hydrothermal-sourced graphite reserves. 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-ton stockpile, along with competitive projected mining and processing costs. The completion of GPNE's Aukam Graphite Mine re-launch and development activities is expected to result in a multi-million dollar inward investment into Namibia in 2014-2015.
For more information, please visit: www.nextgraphite.com
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 Resource Acquisition'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.
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Source: Next Graphite, Inc.