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Graphite One Announces Revised DoD Cost-Share Agreement as Feasibility Study Remains Subject to Financing
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Plain English summary
Graphite One Inc. (GPH: TSX‐V; GPHOF: OTCQX) announced a revised cost-share agreement with the Department of Defense for its accelerated Feasibility Study.
- On May 17, 2024, Graphite One entered a revised cost-share agreement with the Department of Defense for G1's Defense Production Act grant.
- The agreement changes the DoD's share of accelerated Feasibility Study expenditures from 50% to 75%, based on a revised contract value of $49.8 million.
- The DoD's maximum share of the accelerated Feasibility Study program is now $37.3 million under the revised agreement.
- Graphite One advised the DoD project oversight team that the project remains on schedule for Feasibility Study completion by December 2024, subject to financing.
The 2024 field season is about to begin at the Graphite Creek deposit north of Nome, Alaska.
Investor FAQs
Graphite One Inc. announced that, on May 17, 2024, it entered into a revised cost-share agreement with the Department of Defense (DoD) concerning expenditures related to the accelerated Feasibility Study (FS). The revised agreement adjusts the DoD’s share from 50% to 75%, based on a revised contract value of $49.8 million.
The DoD’s maximum share of the accelerated FS programme is now $37.3 million. The source states that Graphite One receives 75% of expenditures in DoD grant funding upon submission, rather than 50%, and does not provide further details on payment timing or other terms.
Graphite One has advised the DoD’s project oversight team that the project remains on schedule to complete the FS as planned by December 2024, subject to financing. The source cautions that continued availability of capital and financing is a factor that could affect forward-looking information.
The Graphite One Project is anchored by the Graphite Creek deposit on the Seward Peninsula about 60 kilometers north of Nome, Alaska. The company’s plan includes processing graphite concentrate and manufacturing natural and artificial graphite anode active materials and other value-added graphite products at a proposed facility in northeastern Ohio. The plan also includes a recycling facility to reclaim graphite and other battery materials at the Ohio site.
Graphite One states that the Project is proposed as a vertically integrated enterprise to mine, process and manufacture anode active materials primarily for the lithium-ion electric vehicle battery market. The company intends to make a production decision upon completion of a Feasibility Study. The source does not state that production has begun or that a production decision has been made.
Graphite One states that forward-looking information is not a guarantee of future performance and that actual results or developments may differ materially. Identified factors include market prices, exploration and exploitation successes, continuity of mineralization, obtaining necessary permits, licences and title, delays due to third-party opposition, changes in government policies, continued availability of capital and financing, and general economic, market or business conditions. The company also states that there is no certainty that testing of its materials will be successful or result in successful products.
The source identifies Graphite One Inc. as GPH: TSX‐V and GPHOF: OTCQX. It also states that the TSX Venture Exchange and its Regulation Services Provider do not accept responsibility for the adequacy or accuracy of the release.
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