TORONTO, ON / ACCESSWIRE / July 14, 2020 / Gratomic Inc. ("GRAT" or the "Company") (TSXV:GRAT)(FRANKFURT:CB81)(WKN:A143MR) is pleased to announce that the shipment of the final pieces of equipment has commenced - a custom drying, size classification and dewatering assembly - required for the Aukam processing plant which, once installed, will complete the mechanical system required to bring the plant into the commissioning phase.
The custom drier system departed the Port of Shenzen China on the 13th of July 2020, and is being shipped to Walvis Bay, Namibia with an estimated arrival to occur in September. Once the three containers of equipment arrive at Walvis Bay, the equipment will be prepared and then trucked to the Aukam site.
Manhattan Engineering, out of Johannesburg, was engaged to complete the structural and civil engineering designs to complete the platforms and foundations required to install the final pieces of equipment at the Aukam site and submitted the final drawings on the 8th of July 2020. During the shipping period, the Company will complete the requisite onsite preparations including installation of concrete foundations, conveyor screw installations, and upgrades of onsite electrical facilities to ensure quick installation and subsequent commissioning of the processing facility. As per the Company's news releases dated May 21, 2020 and May 25, 2020 confirming the Company's commitment to the delivery of the first three purchase orders totalling 1,800 tonnes to TODAQ commencing in November 2020, the pending arrival and subsequent installation of the final pieces of the mill assembly confirms the Company's commitment to meet this schedule.
"We are very excited to see the last pieces of equipment on their way as this will allow Gratomic's Aukam Property to move into the commissioning phase before year's end. I am also very confident and look forward to the steps ahead with TODAQ. I believe achieving these exciting milestones will further strengthen and build our business relations together as partners." ~ President and CEO, Arno Brand.
Gratomic wishes to emphasize that no Preliminary Economic Analysis ("PEA"), Preliminary Feasibility Study or Feasibility Study has been completed to support any level of production. In fact no mineral resources, let alone mineral reserves demonstrating economic viability and technical feasibility, have been delineated on the Aukam Property. The Company appointed Dr. Ian Flint to complete a PEA on the Aukam processing plant.
The Company will deliver TODAQ's Product to an onsite warehouse beginning in November 2020, to fill the first three purchase orders totalling 1800 tonnes. The Company is not in a position to demonstrate or disclose any capital and/or operating costs that may be associated with the processing plant, nor the Company's ability to fulfil its obligations to deliver the 1800 tonnes of graphite as required by the purchaser orders.
Gratomic wishes to emphasize that the supply of graphite pursuant to any off-take or supply agreement referred to in this news release is conditional on Gratomic being able to bring the Aukam project into a production phase and for any graphite being produced to meet certain technical and mineralization requirements. Gratomic continues to move its business towards production and as part of its business plan, expects to obtain a National Instrument 43 - 101 Standards of Disclosure for Mineral Projects technical report to help it ascertain the economics of the Aukam project.
No mineral resources, let alone mineral reserves demonstrating economic viability and technical feasibility, have been delineated on the Aukam Property. The Company is not in a position to demonstrate or disclose any capital and/or operating costs that may be associated with the processing plant.
The Company advises that it has not based its production decision on even the existence of mineral resources let alone on a feasibility study of mineral reserves, demonstrating economic and technical viability, and, as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit.
Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will begin as anticipated or at all or that anticipated production costs will be achieved.
Failure to commence production would have a material adverse impact on the Company's ability to generate revenue and cash flow to fund operations. Failure to achieve the anticipated production costs would have a material adverse impact on the Company's cash flow and future profitability.
About Gratomic Inc.
Gratomic is a materials company focused on mine to market commercialization of graphite products and components for a range of mass market products. The Company currently holds two off-take purchase agreements for graphite product sourced from the Aukam facility. One agreement is with TODAQ and the other is with Phu Sumika. The Company is listed on the TSX Venture Exchange under the symbol GRAT.
For more information: visit the website at www.gratomic.ca or contact:
Arno Brand at [email protected] or 416 561-4095
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
FORWARD LOOKING STATEMENTS:
This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward-looking statements are neither promises nor guarantees and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in Canada (available at www.sedar.com).
SOURCE: Gratomic Inc.