Next Graphite's JV Partner Signs Letter of Intent to Supply Graphite From Aukam
First Shipment of 2,000 - 3,000 Tonnes Targeted for July
NEW YORK, NY and WINDHOEK, REPUBLIC OF NAMIBIA--(Marketwired - Mar 24, 2016) - Next Graphite Inc. (OTC PINK: GPNE) ("Next Graphite," "GPNE" or the "Company"), a graphite exploration / development stage company in Africa's Republic of Namibia, today announced that its joint venture partner has secured an LOI in which the venture will supply up to 5,000 metric tonnes of graphite material to a vertically integrated graphite producer over the course of the next year. First shipment is anticipated in July of this year.
Graphitic material grading between 40 and 50% Cg (carbon as graphite) will be delivered over the course of the next year under the terms of the letter of intent. It is expected that a first shipment of between 2,000 and 3,000 tonnes of graphitic material will be made in July 2016, prior to which the partners will supply a 1.6 tonne sample to allow the producer to run the material through its mill and make any adjustments necessary to treat the Aukam material on a go-forward basis.
This material comes from the previously announced bulk sampling program (see news release dated December 18, 2015). During a 500 tonne bulk sampling program in 2014, Next Graphite was able to stockpile and grade 240 tonnes of graphitic lumps with an average grade of 41.6% Cg within a range of 17.0% to 81.8% Cg.
"We are pleased that our partner has advanced these discussions to a preliminary arrangement for shipment of product to an established graphite producer. This allows us to move on to the next phase of our business plan," said Cliff Bream, President / CEO of Next Graphite Inc. "This sales development is largely due to the quality of our graphite. Vein-type graphite, such as that which occurs at Aukam, is one of the highest grade naturally occurring forms of carbon. The highest grade sample assayed to date from the Aukam property graded 81.8% Cg, similar to the high grade graphite found in Sri Lanka."
Next's partner, CKR Carbon Corp. ("CKR" or the "Company") (TSX VENTURE: CKR) (FRANKFURT: CB8), has also issued a release on this important development.
About Next Graphite, Inc.:
Next Graphite Inc. is an exploration / development stage company targeting the growing global graphite production industry with the Company's Africa-based Aukam Graphite Project. The Aukam Graphite Mine was established in 1940 in the current Republic of Namibia and produced USD$30 million of graphite at today's prices. The site is estimated to contain a significant amount of high grade, vein type graphitic material, and is close to the port city of Luderitz. Global graphite demand is being driven by the development of new markets for clean and efficient energy alternatives, smart grid infrastructure and military capabilities. The completion of GPNE's Aukam Graphite Mine re-launch and development activities are expected to result in a significant investment into Namibia commencing in 2016.
For more information, please visit: www.nextgraphite.com
Safe Harbor Statement
This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Next Graphite Inc.'s management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Such statements include, among others, those concerning market and industry segment growth and demand and acceptance of new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in Africa, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements. Among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in Africa, general economic conditions; geopolitical events and regulatory changes, availability of capital, the Company's ability to maintain its competitive position and dependence on key management. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Contact
CONTACT:
John Mattio
Investor Relations
+1 949 397-2522 ext. 3
ir@nextgraphite.com