TORONTO, ON / ACCESSWIRE / January 15, 2021 / Gratomic Inc. (TSXV:GRAT)(FSE:CB82)(WKN:A143MR)(OTCQB:CBULF) is pleased to announce that the foundations of its product marketing and sales strategy have been officially defined.
During the commissioning phase, due to begin in March 2021, the company will be testing production quality and quantity. In order to support this development, Gratomic has plans in place to upgrade its laboratory facilities at Aukam. This will enable us to properly characterize the initial production batches generated during the commissioning process, and feedback the information to our Process Control, in order to define parameters required to ensure repeatability and efficiency of the production.
As a supplement to our main strategic focus on the battery industry and graphene applications (see press release from Dec 30th, 2020), Gratomic will pursue the development of graphite grades commonly used in applications such as graphitic foil, lubricants, crucibles, refractories, friction materials and ceramics, among others.
This will allow the Company to diversify our portfolio and optimize the output of the processing plant. Filling the remainder of the Aukam Book in terms of offtake and purchase schedules. In the coming weeks, Gratomic will pursue the preparation of samples for 53 graphite end users around the world, in order to begin the testing and homologation procedures that precede the use of our product into the most technical applications.
Gratomic's Product Marketing team has requested an additional 550 kg of graphite samples be shipped to Toronto for conversion to SG16 Battery Grade product specifications in addition to the initial shipment of 243Kg of graphite, which was previously dispatched (see press release from Oct 28,2020). Both samples are destined for distribution to Battery OEM Manufacturers.
"This strategy, only possible thanks to the restless efforts of our team on site, will put Gratomic on a privileged position to make a solid transition to a commercially viable Company", says Armando Farhate, COO & Graphite Marketing and Sales Leader.
"We have one of the best marketing teams in Graphite. Their strategy for filling the remainder of our processing capacity is brilliant and will elevate our credibility as a market leader in the vein graphite industry" said Arno Brand, Gratomic President & CEO.
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 engaged Dr. Ian Flint, Ph.D., P. Eng. (BC), a Qualified Person as that term is defined under National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") to complete a preliminary economic assessment (PEA) on the Aukam Processing plant based upon a resource estimate to be prepared by another Qualified Person. The study, its recommendations, and their subsequent implementation, will provide conclusions and recommendation at a PEA level of comfort relating to the scale up of the existing processing plant to a commercial scale processing facility that will provide the desired concentrate grades and production rates. A preliminary economic assessment is preliminary in nature, and there is no certainty that the preliminary economic assessment will be realized.
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 Press 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. See "Risk Factors" below.
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.
Established in 2014, Gratomic is focused on the proposed production of low-cost mine to market carbon-neutral, eco-friendly, high purity vein graphite to be provided to the EV and Energy Storage supply chains. Gratomic is anticipating full operational capabilities in 2021.
Gratomic is in the process of solidifying its plans for micronization and spheronization of its clean Aukam graphite. This significant milestone is a small, additional step in the Company's proposed eco-friendly processing cycle and is intended to allow it to meet ideal North American battery grade standards for use in Li-ion battery anodes.
The Company plans to deliver mine-to-market traceability and guaranteed quality control. This will be accomplished by providing documented tracking on all graphite generated at its flagship Aukam Graphite Project. The tracking will begin at Aukam and will be verified at every stage during transport.
Two off-take purchase agreements are currently held for lump-vein graphite sourced from Gratomic's Aukam Graphite Project in Namibia, Africa. Fulfillment of the contracts is anticipated to begin in Q1 of 2021. The agreements exist with TODAQ and Phu Sumika.
TODAQ is an innovative deeptech company that can containerize assets, transactions & markets, and will partner with Gratomic on its mine-to-market commodity tracking and trading. Containerized assets are verifiably unique, keep an immutable record of who has owned them, have embedded smart logic, can be transferred P2P, and are interoperable with any system. Asset owners enjoy stronger ownership control, value retention when trading, and ability to prove authenticity in seconds.
Phu Sumika is a large global graphite supplier to battery and lubrication companies.
Gratomic Inc. is listed on the TSX Venture Exchange under the symbol GRAT, on the OTCQB under the symbol CBULF and on the Frankfurt Exchange under the symbol CB82.
Subscribe here to be added to our mailing list and receive news and updates directly to your inbox.
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.
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.