Northern Graphite Corporation
Northern is a Canadian, TSXV listed company that is focused on becoming a world leader in producing natural graphite and upgrading it into high value products critical to the green economy including anode material for lithium-ion batteries/EVs, fuel cells and graphene, as well as advanced industrial technologies.
Northern is the only significant graphite producing company in North America and will become the third largest outside of China when its Namibian operations come back online in 2024. The Company also has two large scale development projects, Bissett Creek in Ontario and Okanjande in Namibia, that will be a source of continued production growth in the future. All projects have “battery quality” graphite and are located close to infrastructure in politically stable countries.
Lac des Iles (LDI) Graphite Mine, Quebec
Okanjande/Okorusu Operation in Namibia
Bissett Creek Graphite Project, Ontario, Canada
Graphite – The New Strategic Mineral
Management and Directors
Hugues Jacquemin, B.Sc., Hons. Dipl. Esp., Chief Executive Officer
Mr. Jacquemin has over 30 years experience in Specialty Materials with Fortune 500 companies including graphite, carbon, battery materials, fuel cells, synthetic graphite and graphene. He was CEO of Imerys Graphite and Carbon Division
Guillaume Jacq, MBA, Chief Financial Officer
Mr. Jacq has 20 years of international finance experience. Guillaume’s extensive experience includes more than ten years in various business & corporate finance roles, as well as internal audit functions at Imerys SA in France, Austria and Switzerland. He was the Finance Director of Imerys Graphite & Carbon between 2016 & 2019 before assuming the role of Group Controlling Director of Imerys in 2020.
Kirsty Liddicoat, M. Mining ENG., B.Sc. (Hons) Geology, Chief Operations Officer
Ms. Liddicoat is a mine geologist with a Masters in Business, Implementation Management and a Masters in Mining Engineering, Mining Geomechanics. She has more than 18 years of global mining experience. Kirsty was most recently the General Manager of Red Lake Operations for Evolution Mining in northwestern Ontario.
David Marsh, B.Sc., Chief Technical Officer
Mr. Marsh has worked in the mining industry for over 40 years and has extensive experience developing new mining projects. He was COO of Avalon Advanced Materials, General Manager Project Development of Paladin Energy, Manager Process & Engineering of GRD Minproc.
Marco Zvanik, B.Sc., Vice President of Global Sales
Mr. Zvanik has 35 years of sales, management and operational experience in the composite material, carbon fibre, nanomaterial and wind energy manufacturing industries.
Gregory Bowes, Honours B.Sc. (Geology), MBA, Chairman
Mr. Bowes has over 30 years of experience in the resource and engineering industries. As CEO he led Northern Graphite for over 13 years. Mr. Bowes was Senior Vice President of Orezone Gold Corporation. He served as President, CEO and a director of San Anton Resource Corporation.
Campbell Birge, B.A., B.Ed., M.Sc., Director
Mr. Birge has over 20 years of experience advising public and private companies specializing in the resource, real estate and cannabis industries in Canada, the United States and Mexico.
Donald H. Christie, CA, Director
Mr. Christie is the President, CEO and a Director of Rockcliff Metals Corporation, the CFO and a Director of Nevada Zinc Corporation and a Director of Digihost Technology Inc.
Hugues Jacquemin, Director
Mr. Jacquemin is the CEO of Northern Graphite. He has over 30 years experience in Specialty Materials with Fortune 500 companies including graphite, carbon, battery materials, fuel cells, synthetic graphite and graphene. He was CEO of Imerys Graphite and Carbon Division
Frank O’Brien-Bernini, B.SC., M. Eng, Director
Mr. O’Brien-Bernini is the Chair of the Environment, Social, Governance (ESG) and Nominating Committee of Northern Graphite. He is a retired, long-time employee and executive of Owens Corning. Mr. O’Brien-Bernini served as Owens Corning’s Senior Vice President and Chief Sustainability Officer in which capacity he was responsible for its global corporate sustainability strategy development and execution including environmental, health and safety, medical/wellness and product stewardship.
Greg Gibson, Advisor
Mr. Gibson has 35 years of hands on experience in the mining industry. He was CEO of Sprott Mining.
On June 29, 2023, Northern Graphite Corp. has signed a letter of intent (LOI) with the City of Baie-Comeau to purchase land for a 200,000-tonne-per-year battery anode material (BAM) plant as it advances plans to supply anode material to lithium-ion battery manufacturing plants throughout North America. The LOI, which is subject to financing and receipt of regulatory approvals, gives Northern the right to purchase a 1.2 million m2 property, approximately 300 acres, in the Baie-Comeau port industrial zone, with access to municipal services and infrastructure, for US$1.2 million.
"This is a big step forward in our strategy to be an integrated, sustainable, cost-effective mine-to-market supplier to the booming EV battery manufacturing market and a key player in North America's critical minerals strategy," said Northern Chief Executive Officer Hugues Jacquemin. "From here everything flows. We now know where the facility will be located, how much power it will require and where the power needs to go and can proceed with all the design and logistical work required to begin construction."
On June 23, 2023, Northern Graphite Corp. will be joining a partnership development activity (PDA) delegation to the United Kingdom on critical minerals from June 26 to 29. The delegation is organized by the High Commission of Canada in London, U.K., and funded by the Trade Commissioner Service through the Canadian International Innovation Program.
The delegation will bring together private sector and government leaders from the critical minerals industry in Canada and U.K. businesses and organizations involved in the space for four days of events curated to forge ties and explore opportunities for collaboration in the energy transition.
On June 22, 2023, Northern Graphite Corp. has commented on news reports that Namibia, home to the company's Okanjande graphite project, has banned the export of unprocessed lithium and other critical minerals. "We have consulted with the Ministry of Mines and Energy of Namibia, and we have been assured that this ban only applies to unprocessed ore and, as such, should have no bearing on our plans to mine and process graphite-bearing resources into concentrate at Okanjande," said Northern Graphite chief executive officer Hugues Jacquemin.
"This prohibition applies strictly to unprocessed critical minerals. Value should be added at least up to the concentrate, carbonate/hydroxide level," said Andreas Simon, a spokesperson for Namibia's Ministry of Mines and Energy, in a statement provided to Northern Graphite. The Okanjande project, due to come back on-line in 2024, will involve mining and processing graphite-bearing material and exporting concentrates to supply traditional markets, as well as to the fast-growing electric vehicle industry.
On May 31, 2023, Northern Graphite Corp. has provided an operating summary and financial highlights for the three-month period ended March 31, 2023. The Company's Financial Statements and Management's Discussion and Analysis are available on SEDAR and on our website.
Financial Highlights for the first quarter include:Revenue of $4.0 million generated from 1,813 tonnes of graphite concentrate sold at an average realized sales price of $2,202/tonne (USD$1,628/tonne) (1) Cash costs of $1,592 (USD$1,171) per tonne of graphite concentrate sold (1) Income from mine operations of $452,000An operating loss of $2.6 million was recorded A net loss of $4.2 million ($0.03 per share) was recorded Cash and equivalents of $2.0 million as at March 31, 2023. Working capital of $20.4 million as at March 31, 2023.4,652,500 warrants with a strike price of $0.45 were exercised for gross proceeds of $2,093,000.On April 27, 2023 the Company closed a non-brokered private placement financing of 3,000,000 units of Northern issued on a charity flow-through basis at a price of $0.75 per unit for proceeds of $2,250,000. Each unit consists of one common share and one-half of one common share purchase warrant, with each whole warrant entitling the holder to purchase one common share at an exercise price of $0.75 for a period of two years.
On May 24, 2023, Northern Graphite Corp. has started a new drill program at its Lac des Iles (LDI) property that is designed to explore previously untested areas of the property with the objective of extending the life of what is the only significant producing natural graphite mine in North America.
Located in Quebec, 180 kilometres northwest of Montreal, the Lac des Iles graphite mine has been in operation for over 20 years and was acquired by Northern in April, 2022. After a detailed review of historical studies and mine plans, the company identified a number of target zones on the LDI property that include the northern extension of the pit, mineralization in the west side of the pit wall and numerous electromagnetic conductors, some of which already have encouraging intersections from historical drilling.
"The new drill program began on May 8, comprises 8,000 metres of drilling, and seeks to delineate additional mineralization as Northern pursues its previously stated plan to increase mine life and production capacity at LDI, including through the potential development of the company's Mousseau West deposit located approximately 80 kilometres away," said Northern Graphite chief operating officer Kirsty Liddicoat.
On May 04, 2023, Northern Graphite Corp. has granted a total of 390,000 stock options to certain new officers and employees pursuant to the company's stock option plan. These stock options are exercisable to purchase common shares of the company at an exercise price of 55 cents per share for a period of five years expiring on May 4, 2028. The stock options granted to officers vest one-third on each of Jan. 4, 2024, 2025 and 2026, while the stock options granted to employees vest one-quarter on each of Jan. 4, 2024, and Jan. 4, 2025, and one-half on Jan. 4, 2026. Additionally, the company has granted a total of 490,000 restricted share units to certain new officers and employees pursuant to the company's deferred share unit and restricted share unit compensation plan. All of the RSUs granted vest one-quarter on each of Jan. 4, 2024, and Jan. 4, 2025, and one-half on Jan. 4, 2026. Once vested, each RSU represents the right to receive one common share of the company or the equivalent cash value thereof, at the company's discretion.
On May 02, 2023, Northern Graphite Corp. has provided an operating summary and financial highlights for the year ended Dec. 31, 2022. The Company's Audited Financial Statements and Management's Discussion and Analysis have been filed on SEDAR.
On April 27, 2023, Northern Graphite Corp. has closed its previously announced non-brokered private placement financing for gross proceeds of $2.25-million. Under the offering, Northern issued 3,000,000 units of the Company on a charity flow-through basis (the "Charity FT Units") at a price of C$0.75 per Charity FT Unit. Each Charity FT Unit consists of one common share of the Company (a "Common Share") and one-half of one common share purchase warrant of the Company (each whole warrant, a "Warrant"), each issued as a "flow-through share" under the Income Tax Act (Canada) (the "Tax Act"). Each Warrant entitles the holder thereof to purchase one Common Share on a non flow-through basis at an exercise price of C$0.75 for a period of 24 months.
The gross proceeds from the Offering will be used to incur, on the Company's Canadian mineral exploration properties, eligible resource exploration expenses that will qualify as (i) "Canadian exploration expenses" (as defined in the Tax Act), and (ii) "flow-through critical mineral mining expenditures" (as defined in subsection 127(9) of the Tax Act). The Company plans to use the proceeds of the Offering to complete a drill program on a number of targets around its Lac des Iles, Quebec graphite mine with the objective of identifying potential new sources of mill feed.
On April 11, 2023, Northern Graphite Corp. has appointed Pav Jordan as vice-president, communications, of the company. Mr. Jordan is a strategic communications professional with extensive media and public relations experience. He will guide Northern's communications strategy as it executes on its goal of becoming a world leader in the production of natural graphite and upgrading it into value added products critical to the green economy.
Pav Jordan has a master in international journalism and over 25 years of experience in the field, first as a mining journalist working on several continents and then working in media, public relations and content strategy for some of Canada's largest and most respected firms including Bloomberg, Thompson Reuters, The Globe and Mail, Bank of Montreal, and Ontario Teachers' Pension Plan. Most recently Pav was a director for the B2B Sustainable Finance editorial and thought leadership program at BMO Capital Markets and the BMO Climate Institute, where he exercised his passion for a sustainable transition to a low carbon economy. Pav is fluent in English and Spanish and has a working knowledge of French. He is based in Toronto, Canada.
On April 06, 2023, Northern Graphite Corp. intends to complete a non-brokered private placement financing of up to three million units of the company issued on a charity flow-through (FT) basis at a price of 75 cents per charity FT unit for proceeds of up to $2.25-million.
The company plans to use the proceeds of the offering to complete a drill program on a number of targets around its Lac-des-Iles, Que., graphite mine with the objective of identifying potential new sources of mill feed.
On March 22, 2023, Northern Graphite Corp. has made senior management appointments that will enhance the company's global team as it executes on its goal of becoming a world leader in the production of natural graphite and upgrading it into value added products critical to the green economy. Kirsty Liddicoat has been appointed chief operating officer (COO) of the company. She brings more than 18 years of global mining experience to the team. Dave Marsh, who has more than 40 years of global experience, has been named chief technical officer (CTO).
On March 14, 2023, The area covered by Northern Graphite Corp.'s Mousseau West graphite project in Quebec has been increased by an additional 101.64 hectares to a total of 590.54 hectares by the Quebec Ministere des Ressources naturelles et des Forets through an automatic procedure under the Mining Act (Quebec) due to the lapse of certain adjoining claims previously held by an arm's-length third party. In connection with the increase in the area covered by the company's claims, the company has paid $50,000 and issued 100,000 common shares of the company to the previous holder of the adjoining claims to settle litigation proceedings challenging the minister's increase in the area of the company's claims. The transaction is an arm's-length transaction for purposes of the policies of the TSX Venture Exchange and was completed as an expedited acquisition pursuant to TSX-V Policy 5.3. The common shares issued to the previous holder of the claims in connection with the transaction are subject to a statutory four-month hold period expiring on July 15, 2023.
On February 13, 2023, Northern Graphite Corp. has entered into an agreement with Edgewater Capital Partners to acquire an ownership interest in NeoGraf Solutions LLC. NeoGraf is a leading provider of specialty, value-added products manufactured from natural graphite and has a strong intellectual property portfolio and a blue-chip customer base. NeoGraf is one of Northern's largest customers. This investment will enable Northern to integrate downstream into the manufacturing of graphite products for a number of high-growth markets, including lithium-ion batteries/electric vehicles, fuel cells, graphene and nanomaterials, thermal management in consumer electronics, smart building products, and fire retardants.
Under the terms of the agreement, Northern has a six-month option to acquire an effective 50.1-per-cent voting interest and a 33.3-per-cent equity interest in NeoGraf and also has an option to increase its interest up to 100 per cent at a later date, subject to the terms and conditions of the agreement. Northern has engaged Sprott Capital Partners LP to act as its financial adviser with respect to financing the investment. Closing of Northern's investment is subject to the execution of definitive agreements, the receipt of all required third party and regulatory approvals, including, if applicable, approval of the TSX Venture Exchange, and to Northern completing satisfactory financing arrangements.
On February 13, 2023, A total of 1.3 million restricted share units granted by Northern Graphite Corp. to certain officers and employees and announced on Dec. 20, 2022, have been issued subject to time-based vesting, with one-fourth of the RSUs vesting on each of the first and second anniversaries of the respective start dates for the officers and employees and with the balance vesting on the third anniversary. It was originally announced that one-fourth of the RSUs would vest on each of their first, second, third and fourth anniversaries. This change was made for tax reasons specific to the award of RSUs.
On January 20, 2023, Subject to the approval of the TSX Venture Exchange, Northern Graphite Corp.'s board of directors has approved a grant of stock options to directors to purchase a total of 1.1 million shares of the company at a price of 55 cents per share, vesting immediately, for a period of five years.
The board has made the following appointments. Gregory Bowes has been appointed as chairman of the board, effective Jan. 1, 2023. He was previously executive chairman. Frank O'Brien-Bernini has been named chair of the environment, social and governance (ESG) and nominating committee.
On January 12, 2023, Northern Graphite Corporation and Graphex Technologies LLC, the U.S. subsidiary of Graphex Group Limited (NYSE American: GRFX) (HKSE: 6128) (collectively "Graphex"), announce that Graphex will participate in Northern's previously announced selection process (January 10,2023) for a site suitable for the construction of a large-scale graphite processing facility in the Baie-Comeau region. The plant is planned to supply coated spherical graphite anode material to the EV/battery markets in North America and beyond. On December 21, 2022 Northern and Graphex announced the signing of a non-binding letter of intent to negotiate a joint venture agreement to build a North American mine-to-battery supply chain.
On January 10, 2023, Northern Graphite Corp. has entered into an agreement with Innovation et Development Manicouagan (IDM) at Baie-Comeau, Que., to evaluate sites for the construction of a planned 200,000-tonne-per-year (tpy) battery anode material (BAM) plant in the industrial port zone of Baie-Comeau. The plant would be one of the largest in the world and would convert graphite concentrate from the company's mines, as well as other producers, into anode material to supply existing and planned lithium-ion battery manufacturing plants throughout North America. Building a low-cost, large-scale conversion facility is a key component of Northern's strategy to empower the electric vehicle industry by creating an end-to-end North American graphite supply chain from the mine to the battery.
On December 21, 2022, Northern Graphite Corp. has entered into a non-binding letter of intent with Graphex Technologies LLC, the U.S. subsidiary of Graphex Group Ltd., a global leader in the production of the anode material used in electric vehicles/lithium-ion batteries, with the intent of combining Northern Graphite's raw material supply capabilities with Graphex's downstream processing expertise to build plants that will provide an end-to-end Northern American supply chain from the graphite mine to the battery.
Graphex and Northern Graphite intend to diligently and in good faith negotiate the terms of a joint venture, including management and ownership percentages, to jointly produce coated spherical graphite anode material for the EV/battery market. Northern Graphite will provide the joint venture with security of raw material supply (graphite concentrate), and it is contemplated that Graphex will license and/or contribute all the technology, plans and expertise for building and operating the plant(s). Graphex has already secured and is developing a site in Warren, Mich., that is being designed to produce 15,000 tonnes per annum (tpa) of battery anode material, and Northern Graphite is evaluating sites in Canada that could accommodate production of up to 200,000 tpa of anode material. Northern Graphite shall remain entitled to enter into supply agreements with third parties for production not committed to the joint venture and to participate in the construction of other processing plants provided that Northern Graphite may not directly or indirectly use, exploit or disclose any of Graphex's technology.
Northern Graphite Corp. has adopted an amended and restated stock option plan and a deferred share unit (DSU) and restricted share unit (RSU) compensation plan.
On December 20, 2022, The Amended Option Plan amends and restates the previously existing stock option plan of the Company in order to implement certain changes required as a result of the implementation by the TSX Venture Exchange (the "TSX-V") of certain amendments to TSX-V Policy 4.4 - Security Based Compensation in November 2021 which set out a new framework for security-based compensation for issuers listed on the TSX-V. As a result of the amendments, the Company amended and restated its previously existing stock option plan to make certain amendments to make it compliant with TSX-V Policy 4.4. The Amended Option Plan is a "rolling option plan" under which stock options may be issued which are exercisable to acquire a maximum of 10% of the common shares of the Company which are issued and outstanding at the time of any grant. The Company currently has 121,315,522 common shares issued and outstanding. The Amended Option Plan as amended and restated was approved by the Company's shareholders at its annual and special meeting of shareholders held on November 21, 2022 (the "Shareholders Meeting") and has been accepted by the TSX-V.
On November 30, 2022, Northern Graphite Corp. has released its financial results for the three- and nine-month periods ended Sept. 30, 2022. The company's interim financial statements and management's discussion and analysis for the periods have been filed on SEDAR and are available under the company's profile. Highlights for the third quarter include:
On October 20, 2022, Northern Graphite Corporation announced that two new management appointments that enhance the company's global team as it executes on its goal of becoming the third largest graphite producer outside of China. Mr. Sam Januarie has been appointed Vice President, Human Resources ("V.P. HR") of the Company, bringing 27 years of Executive Human Resources Management experience to the team. Mr. Serge Theberge, who has more than 35 years of global experience as a mining professional, has been named Vice President, Projects ("V.P., Projects").
On October 12, 2022, the TSX Venture Exchange has accepted for filing documentation relating to an option agreement and a subsequent amending agreement dated Feb. 21, 2022, and Aug. 19, 2022, respectively, between Northern Graphite Corp. and several arm's-length parties. Pursuant to the agreement, the company has acquired a 100-per-cent interest in 12 mining claims on the Mousseau West graphite project, located in Quebec.
On October 5, 2022, Northern Graphite Corp. announced that it has completed the exercise of its option to acquire a 100-per-cent interest in the Mousseau West graphite project through the payment of $500,000 in cash and the issuance of 900,000 common shares of the Company to the owners of the property. Northern also has the right to acquire a 2-per-cent net smelter royalty retained by the owners at any time upon the payment of $1-million.
On September 19, 2022, Northern Graphite Corp. announced that it has appointed Guillaume Jacq (MBA) as chief financial officer (CFO) of the Company, bringing 20 years of international finance experience to the team.
On August 30, 2022, Northern Graphite Corp. announced the Company’s Interim Financial Statements and Management’s Discussion and Analysis for the three and six month periods ended June 30, 2022 have been filed on SEDAR and are available under the Company’s profile. Highlights for the second quarter which only include two months of operation at the Lac des Iles graphite mine (“LDI”) following its acquisition at the end of April 2022 include:
“Release of our second quarter results is another important milestone in Northern’s transformation from a development stage company to a producer with revenues, a positive mine operating profit and a strong cash position,” commented Hugues Jacquemin, CEO. “Becoming the only significant producer of graphite in North America is a good start and we intend to aggressively build on that position through continued production growth, acquisitions and downstream investments.”
On August 8, 2022, Northern Graphite Corp. announced that it intends to exercise its option to acquire a 100-per-cent interest in the Mousseau West graphite project which is located approximately 80 km from and within economic trucking distance of the Company's producing Lac des Iles (LDI) graphite mine in Quebec.