Great Lakes Graphite, which is doing business as NovoCarbon, and Saint Jean Carbon (SJC)has received conditional approval for the Lochaber Graphite Property in South Western Quebec.
The Lochaber Graphite Deposit, located in the prolific Buckingham Region of Quebec, is a former producing mine that boasts high purity capability through simple flotation methods and a favourable particle size distribution for making battery anode materials.
The Company is selling its 100% ownership in the Lochaber claims to SJC for the following consideration;
(i) SJC issues 750,000 common shares to GLK;
(ii) cash consideration of $425,000.00 payable in four yearly installments of $106,250.00 being the first payment and the following three installments to be paid on May 7, 2019, May 7, 2020 and May 7, 2021;
(iii) 1.75% net operational operating cost royalty for 10 years (the “Royalty”); and
(iv) has entered into an offtake agreement with SJC to have the first right of refusal to purchase up to 10,000 metric tons per year of graphite for the life of the Lochaber mine (the “Offtake Agreement”).
For clarity, the supply of the material under the offtake agreement will be at market value and the Royalty will not apply to purchases made pursuant to the offtake agreement.
All securities issued are subject to a hold period of four months and one day pursuant to applicable securities laws.
Source: Company Press Release