Graphite One announces Taiga’s purchase of NSR
by CM Staff
Graphite One is planning to develop a complete U.S.-based, advanced graphite supply chain solution anchored by the Graphite Creek resource.
VANCOUVER — Graphite One Inc. announces that Taiga Mining Company, Inc. has exercised its option to purchase a 1% Net Smelter Production Royalty from the Company. The NSR is attached to 133 Alaska state claims owned or leased by Graphite One which the Company purchased on June 21, 2023 for approximately US$450,000 by issuing to the vendor 456,500 common shares of the Company at a price of CA$1.48 per share. The consideration paid for the sale of the NSR is approximately US$5,220,000, which represents the outstanding Taiga loan balance and accrued interest.
“With the sale of the NSR to Taiga and their continued support, Graphite One is debt free heading into 2024” said Anthony Huston, President and CEO of Graphite One.
The NSR commences on the first day of the month in which the first concentrate is produced from certain of the mineral claims for a period of twenty (20) years.
Two other NSRs on the Graphite Creek Property remain outstanding: a 5.0% and a 2.5% NSR applicable to certain Alaska state claims, of which 2% of each NSR can be purchased separately for US$2,000,000 each, leaving a 3.0% and a 0.5% NSR on their respective claims.
The Company also announces the grant of 906,639 restricted share units and 768,880 performance share units to its officers pursuant to the terms of the Company’s Omnibus Plan. As previously announced on the January 20, 2023 press release, these RSUs and PSUs were the balance of the 2023 awards reserved for issuance in the second half of 2023 under the new compensation program and a new grant to one officer who joined the Company on April 1, 2023.
With the United States currently 100 per cent import dependent for natural graphite, Graphite One is planning to develop a complete U.S.-based, advanced graphite supply chain solution anchored by the Graphite Creek resource.
