Graphite One closes buyback of net smelter production royalty

VANCOUVER — Graphite One Inc., planning a domestic U.S. supply chain for advanced graphite materials, announces the Company has reached a definitive agreement to buy back the 1% Net Smelter Production Royalty (NSR) from Ronald C. Sheardown, which was retained by Sheardown following the June 11, 2015 sale of mining claims to the Company. The buyback cancels the Sheardown NSR which was attached to 133 Alaska state claims owned or leased by Graphite One.

In consideration for the repurchase and cancellation of the Sheardown NSR, the Company will issue to Sheardown 456,500 common shares of the Company at a price of CA$1.48 per share. The common shares issued will be subject to resale restrictions.

Two 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 for a total of US$4 million, leaving a 3.0% and 0.5% NSR on their respective claims.

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. The Graphite One project plan includes an advanced graphite material and battery anode manufacturing plant expected to be sited in Washington State integrated with the development of the Graphite Creek Property. The plan includes a recycling facility to reclaim graphite and the other battery materials, to be co-located at the Washington State site, the third link in Graphite One’s circular economy strategy.