VALUE ADDED PRODUCT PROJECT BECOMES PRIORITY, MINE AND CONCENTRATOR PROJECT PUT ON HOLD
LAVAL, Quebec, April 09, 2020 (GLOBE NEWSWIRE) -- Current market conditions have led Mason Graphite Inc. (“Mason Graphite” or “the Company”) to re-prioritize its projects. Therefore, Mason Graphite announces that the second transformation project (coated spherical graphite) has become the priority of the Company while the first transformation project (mine and concentrator) has been postponed.
Priority to the Value-Added Products Project
Given the greater market demand and superior economics for value-added products of Mason Graphite, (VAP or second transformation), this project has been placed in priority sequence and will be the main focus of the Company’s resources. The high-level technical and economic study completed internally at the beginning of the year has demonstrated that a VAP plant, for the production of coated spherical graphite used for Li-ion batteries, presents sufficient potential to justify further analysis.
Furthermore, cycling tests on coated spherical graphite produced at the pilot scale in 2019 from Lac Guéret concentrate continue (within the limits imposed by the COVID-19 crisis) at three independent laboratories. To date, the results from testing in half coin cells, full coin cells and single-layer pouch cells demonstrate that:
- Specific capacity is higher than 350 mAh/g;
- Capacity retention after 100 cycles is higher than 90%;
- Results in power cycling (accelerated discharge) are conclusive;
- Performances are coherent and reproducible for all three laboratories.
In short, these electrochemical performances are at the same level as commercial references currently available on the market. Tests in multi-layer pouch cells will start as soon as the circumstances allow.
First Transformation Project Postponed
Given the current oversupply of graphite on world markets and the unfavourable capital market conditions for natural resources projects, the Company has decided to postpone, until further notice, the development of the Lac Guéret mine and concentrator (first transformation project). As a result of this decision, Mason Graphite is forced to downsize its team dedicated to the engineering and construction of the first transformation project.
Lac Guéret is one of the highest grade and highest quality known graphite deposits in the world, is located in a highly desirable jurisdiction (Quebec) and remains a key asset for the Company. To this end, all permits, stakeholder relationships and technical studies will be kept current and in good standing for when market conditions return to normal.
Appointment of Interim President and CEO
As of April 1st, 2020, Paul Carmel, Chair of the Board of Directors of Mason Graphite, has been appointed President and CEO of Mason Graphite on an Interim basis. A search committee has been formed – among the directors – and is actively seeking to identify and appoint a permanent CEO.
Consent of the Qualified Person
Jean L'Heureux, Eng., M. Eng., Executive Vice President, Process Development for Mason Graphite, and a Qualified Person, as defined by NI 43-101 for Mason Graphite, was responsible for the audit of data presented in this press release and read and approved it.
About Mason Graphite
Mason Graphite is a Canadian company dedicated to the production and transformation of natural graphite. Its long-term strategy includes the development of value-added products, notably for green technologies like transport electrification. The Company also owns 100% of the rights to the Lac Guéret graphite deposit, one of the richest in the world. The Company is managed by an experienced team cumulating many decades of experience in graphite, covering production, sales, as well as research and development.
For more information: www.masongraphite.com.
Source:
Ana Rodrigues, at info@masongraphite.com or at +1 514 289 3580
Head office: 3030, boulevard Le Carrefour, bureau 600, Laval, Québec, H7T 2P5
Cautionary Statements
This press release contains "forward-looking information" within the meaning of Canadian securities legislation. All information contained herein that is not clearly historical in nature may constitute forward-looking information. Generally, such forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: (i) volatile stock price; (ii) the general global markets and economic conditions; (iii) the possibility of write-downs and impairments; (iv) the risk associated with exploration, development and operations of mineral deposits; (v) the risk associated with establishing title to mineral properties and assets; (vi) the risks associated with entering into joint ventures; (vii) fluctuations in commodity prices; (viii) the risks associated with uninsurable risks arising during the course of exploration, development and production; (ix) competition faced by the resulting issuer in securing experienced personnel and financing; (x) access to adequate infrastructure to support mining, processing, development and exploration activities; (xi) the risks associated with changes in the mining regulatory regime governing the resulting issuer; (xii) the risks associated with the various environmental regulations the resulting issuer is subject to; (xiii) risks related to regulatory and permitting delays; (xiv) risks related to potential conflicts of interest; (xv) the reliance on key personnel; (xvi) liquidity risks; (xvii) the risk of potential dilution through the issue of common shares; (xviii) the Company does not anticipate declaring dividends in the near term; (xix) the risk of litigation; and (xx) risk management.
Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made, including but not limited to, continued exploration activities, no material adverse change in metal prices, exploration and development plans proceeding in accordance with plans and such plans achieving their stated expected outcomes, receipt of required regulatory approvals, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Such forward-looking information has been provided for the purpose of assisting investors in understanding the Company's business, operations and exploration plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is made as of the date of this press release, and the Company does not undertake to update such forward-looking information except in accordance with applicable securities laws.
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