Focus Cg signs off-take deal with Chinese conglomerate

Dec 20, 2013

FOCUS GRAPHITE SIGNS OFFTAKE AGREEMENT FOR LAC KNIFE’S FUTURE GRAPHITE PRODUCTION

Focus Graphite Inc. has entered into an off-take agreement for the future production from Lac Knife’s graphite resource located 27 kilometres southwest of Fermont, Que.

The strategic agreement, for up to 40,000 tonnes per year of graphite concentrate and value-added products, was signed on Dec. 19, 2013, by the company with an industrial conglomerate, comprising heavy industry, manufacturing and technology companies located in Dalian City, Liaoning province, China.

The 10-year agreement calls for the supply of up to 40,000 tonnes per year of large-, medium- and fine-flake graphite concentrate and value-added graphite products from Focus Graphite’s proposed Lac Knife mining and processing facility, Quebec.

The specific terms of the agreement, including pricing and renewal rights, are confidential for competitive reasons.

“On behalf of Focus Graphite, we are extremely pleased to have completed our first off-take agreement. This agreement holds the potential for Lac Knife’s future development,” said Don Baxter, Focus Graphite’s president and chief operating officer. “Not only is this off-take agreement the first of its kind in the graphite industry, it is significant in the fact that it encompasses the wide spectrum of Lac Knife’s offerings in pioneering the sale of small-flake to extra-large-flake and value-added technology products.

“This agreement underscores our long-held commercial objective of competing in the China market.”

This agreement was completed in the absence of a feasibility study (currently under way) and there is no certainty the above objectives will be met.

The technical information presented in this news release has been reviewed by Don Baxter, PEng, president and chief operating officer of Focus Graphite, qualified person under National Instrument 43-101 guidelines.

We seek Safe Harbor.

http://www.focusgraphite.com/news/press-releases