Ottawa (pcJ News Briefs) – Northern Graphite Corporation (TSX-V: NGC; OTCQX: NGPHF) has completed previously announced private placement, raising $2.5M through the issuance of 8,333,333 units at a price of $0.30 per unit.
Each unit consists of one common share and one half of one common share purchase warrant, with each full warrant entitling the holder to purchase one common share at a price of $0.40 per share for a period of two years.
Proceeds will be used to
- finalize operational permitting for the Bissett Creek graphite project;
- update the bankable Full Feasibility Study to reflect a substantial decline in the CDN/US exchange rate, lower oil prices and more competitive equipment pricing, and to integrate some modifications to the flow sheet;
- conduct a pilot plant test of the company’s proprietary purification process which has the potential to provide a substantial competitive advantage in the manufacture of anode material for lithium ion batteries; and
- provide working capital for general corporate purposes.
“The financing was oversubscribed which I believe is a reflection of the quality of the Company’s asset and the outlook for the graphite market. The financing provides the means to continue moving forward with preparations for full project financing, construction and production,” commented Gregory Bowes, CEO.
Northern Graphite is a Canadian company that has a 100% interest in the Bissett Creek graphite deposit located near North Bay, relatively close to all required infrastructure. Bissett Creek is an advanced stage project with a Full Feasibility Study and its major environmental permit.
photo credit: Northern Graphite