US Assets to be Focal Point Moving Forward for Alabama Graphite; Hearst, Ontario, Canada Development Deferred
Friday, September 26, 2014 3:15 AM
Vancouver, BC / ACCESSWIRE / September 26, 2014 / Alabama Graphite Corp. ("Alabama Graphite" or the "Company") (TSX-V:ALP) (OTCQX:ABGPF) (FRANKFURT: 1AG WKN: A1J35M) (ISIN# CA0102931080) is pleased to announce that it has completed an in-house review of its three graphite projects. The goal of this review was to provide direction for the Company as it decides how to maximize the impact of its exploration and development dollars. The Company has decided to suspend further work on its Hearst Graphite property in Ontario, Canada (the "Hearst Project") and focus all of the Company's resources on the Coosa and Bama projects located in Alabama, USA.
While additional work had been contemplated, the consensus of Alabama Graphite's technical staff is that the Company has more worthwhile projects and further expenditures are not warranted. Consequently, the Hearst Project will be placed on standby because of the advanced stage of its flagship Coosa Graphite Project and the outstanding preliminary metallurgical results from its recently acquired Bama Project.
"Concentrating our efforts on our two advanced-stage projects in Alabama is the sensible decision for our Company," stated Ron S. Roda, CEO. "Our work over the last two years has given us expertise in the Alabama graphite belt including a detailed understanding of the regional geology, hands-on knowledge of how to explore for graphite in oxidized environments, and a familiarity with the Alabama regulatory environment. Having two projects in close proximity to each other also allows for synergies regarding our staff and facilities. While our decision to terminate further spending on the Hearst Project was not taken lightly, we feel that our Alabama projects offer better economic potential. Given that our ultimate goal is to become North America's newest and greenest graphite producer, this final consideration is the only one that mattered."
Rick Keevil, P. Geo., a Director of the Company and VP of Project Development, is a Qualified Person as defined by National Instrument 43-101, has reviewed the contents of this press release.
About Alabama Graphite:
Alabama Graphite Corp.'s mission is to become one of the greenest graphite producers in the world. The Company, through its wholly-owned subsidiary, Alabama Graphite Company Inc., is conducting exploration and development at its flagship Coosa Graphite Project in Coosa County, Alabama, USA and the recently acquired Bama Project in Chilton County, Alabama, USA. These two advanced-stage projects are 100% owned by Alabama Graphite and are on private land. The two projects encompass over 43,000 acres and are located in an area with significant historical production of crystalline flake graphite. The Company has the largest NI 43-101 indicated flake graphite resource in the United States based on drilling 0.18 square miles (0.3% of the total acreage). The Alabama deposits are unique in that a significant portion of the graphite-bearing material is oxidized and has been broken down into an extremely soft rock. Both projects have in place critical infrastructure, are within close proximity to transportation routes and enjoy a hospitable climate allowing for year-round production and delivery. For further information and updates on the Company please visit www.alabamagraphite.com.
ALABAMA GRAPHITE CORP.
Ron S. Roda
President & Chief Executive Officer
Disclaimer for Forward-Looking Information
This press release contains forward-looking information under applicable Canadian securities laws ("forward-looking statements") that are based on the beliefs of management and reflect Alabama Graphite Corp.'s current expectations. When used in this press release, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements. Such statements reflect the current view of Alabama Graphite Corp. with respect to risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements.
By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among other things, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of graphite; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in the Company's publicly filed documents. Forward-looking statements are also based on a number of assumptions, including that contracted parties provide goods and/or services on the agreed timeframes, that equipment necessary for exploration is available as scheduled and does not incur unforeseen breakdowns, that no labour shortages or delays are incurred, that plant and equipment function as specified, that no unusual geological or technical problems occur, and that laboratory and other related services are available and perform as contracted.
Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and Alabama Graphite Corp. undertakes no obligation to update forward-looking statements (unless required by law) if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.
Alabama Graphite Corp cautions that the foregoing list of material factors and assumptions are not exhaustive. When relying on Alabama Graphite Corp. forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and assumptions and other uncertainties and potential events. Alabama Graphite Corp. has also assumed that the material factors and assumptions will not cause any forward-looking statements to differ materially from actual results or events. However, the list of these factors and assumptions is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
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SOURCE: Alabama Graphite Corp.