The companies had signed the option agreement in March 2012.
Tawsho Mining said that the mineral claims have been left in good standing for a minimum period of 180 days, as per the agreement terms.
The assessment report, which was accepted for filing by the Newfoundland Department of Natural Resources, has been issued to optionors of the property.
Tawsho Mining president and CEO Stephen Balch said, "preliminary metallurgical work on the graphite indicated that the material would have to be ground into a smaller flake size distribution than we had hoped for in order to produce a marketable grade.
"This would result in a lower value per tonne of concentrate compared to other graphite projects.
"Given the high number of graphite projects currently under development we decided to return Tawsho’s interest in the property to the optionors. Tawsho will instead focus on its Chevrier gold project in Quebec, Canada."
