Business
Northern Graphite Closes Royalty Financing
Ottawa, Ontario--(Newsfile Corp. - July 16, 2020) - Northern Graphite Corporation (TSXV: NG...
About this update from Northern Graphite Corporation
[{"type":"text","content":"Northern Graphite Closes Royalty FinancingOttawa, Ontario--(Newsfile Corp. - July 16, 2020) - Northern Graphite Corporation (TSXV: NGC) (OTCQB: NGPHF) (the \"Company\" or \"Northern\") has closed the previously announced sale of a one per cent gross revenue royalty (\"GRR\") on its Bissett Creek Project to Electric Royalties Ltd. (\"ELEC\") for $500,000 in cash and two million common shares of ELEC (the \"Consideration Shares\"). Half of the Consideration Shares are subject to a 12 month hold period and half to an 18 month hold period. Under the terms of the agreement ELEC also has a two-year option to acquire an additional half of one per cent GRR by paying $750,000, of which up to 25 per cent can be paid in ELEC shares. Northern has the option to buy back half of one per cent of the initial GRR at any time after 12 months by returning the Consideration Shares or paying $1.5 million in cash. Gregory Bowes, CEO of Northern, commented that: \"Bissett Creek is a high margin project and the sale of a small royalty has very little effect on its economics. The proceeds provide a non-dilutive source of funding while the Company continues to wait for a turnaround in graphite prices. The World Bank recently estimated that annual graphite production will ultimately have to increase 500 per cent to meet the demands of the electric vehicle and energy storage markets. This is the largest projected increase of any of the battery minerals. And there are no new graphite mines currently under construction.\" He added that: \"We are happy to support ELEC in bringing more attention to the electric metals/minerals space by selling a royalty on what we believe is one of the world's highest quality, undeveloped graphite projects.\"Brendan Yurik, CEO of Electric Royalties Ltd., commented that: \"We are excited to become a financial partner to Northern through a non-dilutive royalty financing given its project is conveniently located in Canada in easy transportation distance to announced new battery factories and has a long mine life with high quality graphite for battery and industrial uses. We are also very pleased to welcome Gregory Bowes to our Advisory Board.\" About Northern Graphite Northern's 100% owned Bissett Creek graphite deposit is located in the southern part of Canada with ready access to labour, supplies, equipment and concentrate tran...