The new Focus Graphite

Focus Graphite — The Most Advanced Battery-Grade Graphite Project in North America

With proven reserves and strong economics, Focus Graphite Inc. is an emerging mining development company with the objective of producing value-added products for the lithium-ion (Li-ion) battery market from its 100%-owned Lac Knife Graphite Project. Located in mining-friendly Québec, Canada, Lac Knife is one of the highest-grade natural flake graphite deposits known in the world and the most advanced graphite project in North America.

The Company’s predevelopment milestones have been met and we are now moving forward. From an initial listing on the TSX-Venture in May of 2010, the company has positioned itself as one of the most advanced, innovative graphite development companies in the world.

Graphite is a critical strategic material in the clean energy technology economy, driven by increasing demand for products such as Li-ion batteries for electric vehicles, energy storage, photovoltaics, and consumer electronics from smartphones to laptops. As a bottom-quartile cost producer, Focus Graphite is positioned meet demand for technology grade graphite now and into the future, and to weather cyclical downturns in the market through a vertically integrated, cost-mitigating supply chain structure.

Entering 2015, Focus Graphite enjoys the support of multiple levels of government and the Innu First Nation. Focus Graphite’s industrial strategy rests on future production from its Lac Knife, Québec deposit to produce low-cost, high-grade graphite concentrate and value added graphite products for the renewable energy sectors, inclusive of battery grade spherical graphite.

According to Dundee Capital Markets, graphite demand will rise an estimated 8.6% per year between now and 2020 causing a supply imbalance from production curtailment in China; anticipated demand in the global battery manufacturing sector, created in part by demand from Tesla Motors and its electric vehicle competitors, and; China’s electrification and Europe’s expansion of existing electric transportation infrastructures. 

Having met its numerous regulatory and developmental milestones during 2014, Focus is exceptionally well positioned to make further advances toward production during 2015.

Discussions leading to securing mine and plant financing of $165.5 million (including a $17 million contingency) are currently underway with public and private sector funds, vendors and institutions. The company anticipates further announcements resulting from those discussions within the coming months.

Focus Graphite’s Industry-Leading Accomplishments Include:

December 2013: Focus made mining history by signing the first-ever, long-term graphite supply contract – or offtake agreement – with a Chinese industrial conglomerate located in Dalian City.

January 2014: A 92% increase of Lac Knife’s Measured and Indicated Resource to 9.6 million tonnes grading at 14.77% Cg. The updated mineral resource was subsequently incorporated into a mineral reserve estimate in the Lac Knife feasibility study.

May 2014: Independent testing confirmed Focus Graphite’s success in producing extremely high-performing coated spherical graphite for use in anodes for Li-ion batteries. Focus achieved this through in-house, proprietary purification technologies.

June 2014: The Lac Knife Feasibility Study highlighting a pre-tax NPV of $383 million ($224 million post tax); 30.1% IRR (24.1% post tax) and Operating Costs of $441 per tonne over a 25-year mine life. The study did not incorporate values related to its spherical graphite production.

September 2014: The company’s definitive move into the project financing phase for the Lac Knife Project with first tranche closing of a $6.5 million private placement with net proceeds used in part for work related to the Detailed Engineering Phase of the project.

October 2014: Intersection of significant mineralization at depth below a discovery of 88.5 metres grading 12.82% Cg at its Lac Tetepisca Project. Metallurgical results showed an average of 94.7% total carbon in +200 mesh flake, including 97.7% total carbon for +80 mesh flake with similarities in carbon content to the Company’s Lac Knife Deposit. The Graphite Flake shows some similar properties to the Lac Knife flake. This shows promise of use in batteries.

October 2014: The Company enters into a pre-development, collaborative agreement with the Uashat Mak Mani-Utenam Innu First Nation to incorporate the community’s concerns related to the Lac Knife Graphite Project into the company’s submission of its Environmental and Social Impact Assessment to the Québec government.

December 2014: The filing of the company’s Environmental and Social Impact Assessment for the Lac Knife Graphite Project to the Québec government – a significant milestone required to obtain permitting approvals for mine and plant construction.

January 2015: Entering the final discussions phase for mine and plant financing beginning with Caterpillar Financial Services Corporation’s formal expression of interest in participating in the Lac Knife Project’s financing structuring.

“With the Feasibility Study in hand, ESIA filed, an historic offtake agreement in place, as well as battery-tested spherical graphite, Focus Graphite has positioned itself as a proven leader in the graphite space. No other company has achieved this level of development.”
Gary Economo
President and Chief Executive Officer
Focus Graphite Inc.

Our Anticipated 2015 Milestones Include:

  • Commencement of detailed Engineering, Procurement, and Construction Management (EPCM)
  • Hydro-Québec’s power line detailed engineering and build-out to the Lac Knife mine site
  • Submission of Mine Closure Plan and mining leases
  • Execution of additional offtake agreements
  • Completion of Project Financing
  • Launching of a new Feasibility Study for the project of construction of Focus Graphite’s secondary value-added graphite transformation plant in the port city of Sept-Iles, Québec (a non-extractive project that does not follow the CIM Definition Standards of “Feasibility Study for a Mineral Project” as defined in the NI 43-101 guidelines)

With the above milestones achieved and a clear strategy moving forward, Focus Graphite intends to reset the standard for high-quality graphite and become a leader in the clean technology economy through an innovative, vertically integrated mine-to-technology strategy.

Beginnings

Focus Graphite President and Chief Executive Officer Gary Economo closes a $20,000,000 bought deal private placement, led by Cormark Securities Inc. (May 12, 2011)

Focus Metals Inc. listed on the TSX Venture Exchange on May 25, 2010. IAMGOLD sold 100% of the Lac Knife property to Focus on October 5, 2010. Focus Metals changed its name to Focus Graphite on May 24, 2012, to better reflect the company’s core business.

20100325-fo200

20100706-Focus_200

20120524-focusgraphite_200