OTTAWA, ONTARIO--(Marketwired - Aug. 8, 2014) -
Focus Graphite Inc. ("Focus" or the "Company") (TSX
VENTURE:
FMS) (OTCQX:
FCSMF) (FRANKFURT:FKC) sole owner of the Lac Knife,
Quebec high purity graphite deposit announced today that the Feasibility
Report prepared in accordance with National Instrument 43-101and with
form 43-101F1 will be filed under the Company's SEDAR profile on Friday
August 8
th, 2014 at
www.sedar.com and on Focus' website (
www.focusgraphite.com).
The Feasibility Study was prepared by Met-Chem Canada Inc.
with contributions from AGP Mining Consultants, Journeaux Associates and
Golder Associates.
Don Baxter, Focus' President and Chief Operating Officer
said: "With the Feasibility Study now completed, we continue to de-risk
the project by focusing on key, near to mid-term milestones, including:
detailed engineering, project financing, and the permitting process.
"In particular," he added, "the Feasibility Study opens the door to another level of available financing.
"We are evaluating options to secure project financing that
will enable us to advance the Lac Knife mine and plant construction."
Mr. Baxter said discussions with potential offtake partners
are ongoing and will complement the
existing 10-year offtake signed in
December, 2013.
The highlights of the Feasibility Study, as reported June 25, 2014:
Of note is that average prices used in the financial
model do not include value added products produced using the typically
lower valued finer natural flake graphite.
Background:
The Feasibility Study was conducted with engineering and
estimation methods appropriate to target an accuracy of 15% that is
standard and realistic for capital and operating cost estimates for this
level of study, that is required prior to detailed engineering, and
well beyond the +/- 30% accuracy of a Preliminary Economic Assessment
(PEA). Based on an extensive risk review exercise the contingency is
11.5%. Capital Expenditures in Table 2 itemize cost requirements for
mine construction, processing plant, power line and all associated
infrastructure estimated at $165.55 million.
The company is continuing discussions with vendors to define
financing packages for equipment. The company's aim is to reduce up
front capital and add to the basket of financing options currently being
investigated. Discussions and due diligence continue regarding Supply
Chain Financing ("SCF") based on the offtake agreement signed in
December, 2013 for a minimum of 50% of Lac Knife's production over the
life of a 10-year agreement. SCF is a non-dilutive alternative to equity
financing and is less encumbering than traditional debt, or royalty
financing.
Future off-take agreements will contain a financial
component. This project-financing alternative could include equity and
low interest debt as well as a signing bonus to execute an offtake
agreement. The various options discussed above have the potential to
enhance future project economic evaluation metrics, and the company
continues these discussions with several interested parties.
Qualified Persons
The technical information within this news release was
approved by Project Leader Mary-Jean Buchanan Eng., and Jeffrey Cassoff
Eng., Lead Mining Engineer, and Ewald Pengel P. Eng., Senior
Metallurgist, who was responsible for concentrator design, of Met-Chem
Canada Inc. all Qualified Persons under NI 43-101 guidelines and
independent of the issuer. Pierre Desautels, P.Geo., of AGP Inc.
completed the NI- 43-101 Mineral Resource Estimate and is independent of
the issuer.
The technical information in this news release was prepared
by Mr. Don Baxter, P. Eng., Focus President & Chief Operating
Officer, a Qualified Person as defined by NI 43-101 guidelines, who has
reviewed and approved the technical content of this news release.
About Focus Graphite
Focus Graphite Inc. is an emerging mining development company
with an objective to produce value added products initially for the
lithium ion battery market from the Lac Knife graphite deposit located
south west of Fermont, Québec. The Lac Knife project hosts a NI 43-101
compliant Measured and Indicated Mineral Resource Estimate* of 9.6
million tonnes grading 14.77% graphitic carbon (Cg) as natural flake
graphite with an additional Inferred Mineral Resource Estimate* of 3.1
million tonnes grading 13.25% Cg. Focus' goal is to assume an industry
leadership position by becoming a low-cost producer of technology-grade
graphite. The Feasibility Study filed with SEDAR on August 8, 2014 for
the Lac Knife Project indicates the project is economically viable and
has the potential to become a low cost graphite producer based on 7.86
million tonnes (429,000 tonnes Proven and 7,428,000 tonnes Probable) of
Proven and Probable Reserves grading 15.13 Cg. On May 27, 2014 the
Company announced the Potential for High Value Added Sales in the Li-Ion
Battery Sector following battery coin cell tests performed on Lac Knife
Spherical Graphite ("SPG"). Testing measured the performance metrics
and confirmed Focus' capability to tailor lithium ion battery anode
grade graphite and value added products to meet the most stringent
customer specifications. Focus Graphite is a technology-oriented
enterprise with a vision for building long-term, sustainable shareholder
value. Focus also holds a significant equity position in graphene
applications developer Grafoid Inc.
*
Mineral resources are not mineral reserves and do not have demonstrated economic viability
Forward Looking Statement
This news release contains "forward-looking information"
within the meaning of Canadian securities legislation. All information
contained herein that is not clearly historical in nature may constitute
forward-looking information. Generally, such forward-looking
information can be identified by the use of forward-looking terminology
such as "plans", "expects" or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or "believes", or variations of
such words and phrases or state that certain actions, events or results
"may", "could", "would", "might" or "will be taken", "occur" or "be
achieved". Forward-looking information is subject to known and unknown
risks, uncertainties and other factors that may cause the actual
results, level of activity, performance or achievements of the Company
to be materially different from those expressed or implied by such
forward-looking information, including but not limited to: (i) volatile
stock price; (ii) the general global markets and economic conditions;
(iii) the possibility of write-downs and impairments; (iv) the risk
associated with exploration, development and operation of mineral
deposits; (v) the risk associated with establishing title to mineral
properties and assets; (vi) the risks associated with entering into
joint ventures; (vii) fluctuations in commodity prices; (viii) the risks
associated with uninsurable risks arising during the course of
exploration, development and production; (ix) competition faced by the
resulting issuer in securing experienced personnel and financing; (x)
access to adequate infrastructure to support mining, processing,
development and exploration activities; (xi) the risks associated with
changes in the mining regulatory regime governing the resulting issuer;
(xii) the risks associated with the various environmental regulations
the resulting issuer is subject to; (xiii) risks related to regulatory
and permitting delays; (xiv) risks related to potential conflicts of
interest; (xv) the reliance on key personnel; (xvi) liquidity risks;
(xvii) the risk of potential dilution through the issue of common
shares; (xviii) the Company does not anticipate declaring dividends in
the near term; (xix) the risk of litigation; and (xx) risk management.
Forward-looking information is based on assumptions management believes
to be reasonable at the time such statements are made, including but not
limited to, continued exploration activities, no material adverse
change in metal prices, exploration and development plans proceeding in
accordance with plans and such plans achieving their stated expected
outcomes, receipt of required regulatory approvals, and such other
assumptions and factors as set out herein. Although the Company has
attempted to identify important factors that could cause actual results
to differ materially from those contained in the forward-looking
information, there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that such
forward-looking information will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such forward-looking information. Such forward-looking information has
been provided for the purpose of assisting investors in understanding
the Company's business, operations and exploration plans and may not be
appropriate for other purposes. Accordingly, readers should not place
undue reliance on forward-looking information. Forward-looking
information is made as of the date of this news release, and the Company
does not undertake to update such forward-looking information except in
accordance with applicable securities laws.
Focus Graphite Inc.
Mr. Don Baxter, P.Eng
RB Energy Inc. 
