Northern Graphite Corporation has announced that it has completed the previously announced exercise of its option to acquire a 100% interest in the Mousseau West graphite project (“Mousseau West” or the “Property”) through the payment of $500,000 in cash and the issuance of 900,000 common shares of the Company to the owners of the Property. Northern also has the right to acquire a 2% net smelter royalty retained by the owners at any time upon the payment of $1 million.
Hugues Jacquemin, Northern CEO, commented, “Mousseau West has the potential to become a significant project and we expect the deposit can play an important role as the Company solidifies its position as the only significant graphite producer in North America. We recognize there are local concerns and will do everything possible to minimize its effects and to maximize its benefits to all stakeholders in the Antoine-Labelle Regional Municipality and the Province of Quebec. Projects such as Mousseau West and local communities must find ways to co-exist because minerals like graphite are critical to maintaining our standard of living, supporting the transition to a green economy and reducing our dependence on China. Our Lac des Iles, Quebec quarry (‘LDI’) is the only significant graphite producer in North America and has been providing jobs and economic benefits to the municipality for over 30 years. Resources at LDI will be depleted in the next couple years and Mousseau West has the potential to significantly extend its life and return production to 25,000tpy, thus maintaining the jobs and economic benefits generated in the Antoine-Labelle Regional Municipality. There will be no processing plant or tailings pond at Mousseau West, only a quarry. Both projects are in close proximity to a number of North American lithium ion battery factories and are well positioned to provide them with a secure supply of graphite produced with the highest ESG standards.”
Graphite is the largest component in lithium ion batteries which make the transition to electric vehicles (“EV”) possible. It is also a critical component in fuel cells and it is an additive that makes many products lighter, stronger and more energy efficient. China is the largest producer of graphite and though its processes are not ESG compliant it continues to supply almost all graphite that is used in batteries. For these reasons the EU, US and Canada have declared graphite a critical mineral.
Mousseau West is located approximately 12 kms north of Highway 117, 40 kms east of Mont Laurier, Quebec and 150 kms north of Montreal, Quebec. It is located approximately 80 kms from the Company’s producing LDI graphite mine. Over 7,500 meters of drilling has been carried out at Mousseau West and the Property contains an Inferred Resource of 4.1 million tonnes grading 6.2% graphitic carbon. The resource includes 2.7 million tonnes that have been drilled on 25 meter centers and do not need additional definition work.
The Mousseau West deposit outcrops at surface making it very suitable for an open pit quarry. The deposit has not been closed off by drilling and other conductors exist on the Property and represent additional exploration targets. The graphite is mainly hosted by calcitic marbles which provide buffering capacity for the low level of sulphides which indicates that like LDI, any tailings would likely be non-acid generating.
The common shares issued to the owners of Mousseau West as partial consideration for the Company’s acquisition of the Property are subject to four month resale restrictions under applicable Canadian securities laws and the policies of the TSX Venture Exchange expiring on February 5, 2023.
