Northern Graphite to raise $1.6M for feasibility study

Canadian miner Northern Graphite (TSXV: NGC) plans to raise up to C$2.2 million ($1.6 million) on the stock market as it builds on a recent federal lifeline extended to North America’s sole graphite mine.Up to 20 million common shares will be sold at C$0.11 apiece in a non-brokered private placement, Northern Graphite said Thursday in a statement. Net proceeds will be used to start a feasibility study on a planned battery anode material plant in Baie-Comeau, Quebec, and for working capital and corporate expenses.News of the offering comes less than a month after the federal government loaned Ottawa-based Northern Graphite money to boost the company’s main Lac des Îles mine in Quebec.Canada’s C$6.2 million repayable contribution is expected to finance three-quarters of the eligible costs for an extension of the mine’s pit to increase output of the critical mineral.It would help keep the mine in operation and allow the company to continue to serve industrial customers while pursuing a goal of becoming a key supplier to growing defence and battery markets in North America, CEO Hugues Jacquemin said Aug. 26.Work ASAPNorthern Graphite’s goal is to break ground as soon as possible to ensure a continuous flow of material. First production from the new zones could take place in six to eight months, the company said. In the meantime, Northern Graphite plans to continue processing ore from existing pit and ore stockpiles through the third quarter and fulfilling orders from inventory thereafter.Lac des Îles has faced operational uncertainty due to a slowdown in the global electric vehicle market, leading to falling prices in battery minerals. Earlier this year, Northern Graphite said it would shut the mine down by the end of 2025 unless it secures C$10 million for an expansion.Located about 150 km northwest of Montreal, the mine has been in operation for 35 years, serving mostly industrial clients such as foundries or carmakers. It supplied 12,000 tonnes of graphite concentrates last year.2024 resourceThe pit extension is based on the mine’s January 2024 resource, which outlined 3.3 million indicated tonnes at an average grade of 6.4% graphitic carbon, containing around 213,000 tonnes of the mineral. The site also holds 1.4 million inferred tonnes averaging 7.4% graphitic carbon containing about 106,000 tonnes of the mineral.The stock sale announced Thursday is subject to the receipt of all requisite approvals, including the final acceptance of the TSX Venture Exchange, Northern Graphite said. Shares sold in the private placement will be subject to a statutory hold period of four months from the date of issuance.Northern Graphite envisions starting construction of the Baie-Comeau facility as soon as next year, with operations beginning in 2027. Annual capacity would initially be about 20,000 tonnes, with potential for expansion. The proposed plant is currently awaiting power allocation from Hydro-Quebec, the provincially owned electricity producer.Shares of Northern Graphite fell 6.5% to close at C$0.145 on Thursday in Toronto, giving the company a market value of about C$19 million. The stock has ranged between C$0.045 and C$0.20 in the past year.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com