Skip Navigation Links


Bookmark and Share
Focus Graphite (TSX: FMS) Plans to Mine and to Produce Graphite and Graphite Products with Advancements of its Lac Knife Project in Quebec

on 3/22/2016
Focus Graphite (TSX: FMS) is currently in plans to mine and build a production facility to produce graphite and lithium battery options in the future. Focus Graphite has an expert team led by the vision and guidance of Gary Economo. Focus has one of highest grade graphite deposits and is projected to be a low cost producer in mine friendly Quebec.

Chester Burtt, Director of Focus Graphite (TSX: FMS), updated readers on the progress that the company has been making during his visit to the PDAC convention. He said, “We are quite optimistic about our plans and the graphite sector in general at the moment. We think that it has bottomed out and there is a turnaround coming.”

Mr. Burtt sees this in his own company as well as others. He said, “We could see in the last few days where all of the graphite company stock values are up. We think that in the next while there will be a tipping point. We are only 48 months away from implementation of the Paris accords on emission targets. With automobile manufacturers and EV manufacturers setting aggressive production targets for 2020, there will be an imminent need to source critical materials for battery production. When you connect the dots that is only a short time away, just 48 months. We believe that as a North American source of quality graphite, we are an excellent potential offtake partner.”



Mr. Burtt believes that his company offers something that the market needs. He said, “What makes us different comes down to our concentration, our grade and our purity. We have 15% concentration; you spin that out and it makes for excellent economics. We come out of the ground with a 98% purity, which means upgrading to battery grade material is more affordable than with some other companies, and that is what the green tech revolution is all about, providing a competitive bottom line – quality product at less cost. We will fit well into the development plans of these companies.”



The location of the project is ideal for serving customers. Said Burtt, “Our Lac Knife resource is on the Quebec/Labrador border. We sit right beside North America’s largest iron ore mines. There’s excellent infrastructure, cheap hydropower, excellent rail line service and skilled manpower. So we have all the key ingredients beneficial to us in mine development.”

The team running Focus consists of visionaries, experienced business people and renowned experts in the graphite field. Said Burtt, “We have an excellent team. We have brought together some key players. Our Director of Manufacturing and Technology, Dr. Joseph E. Doninger, MSc, BSc. spent his career at Superior Graphite in Chicago and retired from there before joining us. He is a globally renowned graphite expert and he’s spearheading our talks with various potential offtake partners. He provides the technical experience and credibility needed to interpret our product advantages for offtakes. We have a Vice President of Project Development, Jeff Hussey, P.Geo. BSc. who has a wealth of experience in the mining sector and deep relationships within the Province of Quebec. He has been with us for several years. And we have the vision of our CEO, Gary Economo, whose early vision was to build an enterprise platform of critical material companies for next generation battery development. Along with Focus, we have Stria Lithium, our affiliate lithium company. Stria is working on a process to drive the cost down for lithium production and lithium metals and lithium foil. We have a team of material scientists at our Kingston, Ontario facility, the Grafoid Global Technology Center, working on graphene applications in three areas: next generation battery development, composite materials and coatings. So when you combine this expertise and talent with this breadth and depth across an enterprise platform of graphite, graphene and lithium, we feel we are very well positioned to lead the market.”

In terms of where Focus Graphite is now in its development plans, Burtt said, “our capex to build the mine is $166 million Canadian. We are actively searching out financing to meet our capex requirements. We have approximately 2/3 of that money identified. We are actively looking for the remaining 1/3. We have 120 million shares outstanding right now. With the stock price of $0.15, we have a market cap of about $17 million dollars.”



Burtt believes now is the time for investors to take a hard look at Focus Graphite and the graphite sector. He said, “I would say to investors, even though the market is down, we have a high grade with a high purity and at a price the market requires. It’s a compelling investment case. Tomorrow’s markets are going to be driven by mobile tech applications, electric vehicles and a consciousness that we need to focus on protecting the environment. The products that we offer will be the ones that will drive green technology applications. Graphite and lithium are two of the key, critical materials for tomorrow’s economy.”

The eventual plan is to go from mine to product. Said Burtt, “I’d like people to keep in mind that the early strategy set by Gary Economo and Chairman Jeff York hasn’t changed. We wanted to build a vertically integrated enterprise that would produce graphite and graphene value added products and applications for tomorrow’s markets, and we have a base like no others in the world. We wanted a mine to market strategy that when exercised would give shareholders a de-risked business model with many options for shareholder return. We just bought a small battery company in Florida that supplies batteries for Indy, NASCAR and Formula 1 race cars. It is a niche market player that we want to expand into other revenue areas. As well as a profitable battery supply company, Braille will be our battery development company.”

Disclosure
The Alper family owns Focus Graphite stock.



http://www.focusgraphite.com/
Focus Graphite Inc.
130 Albert Street
Suite 912
Ottawa, Ontario K1P 5G4
CANADA

T +1 613-241-4040
F +1 613-241-8632
E info@focusgraphite.com


Disclaimer | Terms Of Use And Privacy Statement


© Metals News. All rights reserved.