Governed by a 20-year lease, the project will have automatic renewal provisions which will allow for a 5% net smelter royalty that could be reduced to 3% if payments are made of $2m for each percent purchased.
The company unveiled the significant advancements it has made on the property since 2012, noting the recently reported National Instrument 43-101-compliant inferred resource of 284.7 million tons at 4.5% graphite, including 37.68 million tons at 9.2% graphite and 8.63 million tons at 12.8% graphite.
Graphite One Resources president and CEO Anthony Huston said, "We have succeeded on all fronts, both financially and technically, to now own this asset 100%, and will forge ahead to unlock the deposit’s value for shareholders."
The Graphite Creek property consists of 129 claims totaling 6,799ha on Alaska’s Seward Peninsula, 65km north of a deep sea port at Nome.
