Graphite One Resources Inc.
29 May 2015
Graphite One Resources Inc. Executes Graphite Creek Lease
Agreement
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 28, 2015) -
Graphite One Resources Inc. (TSX VENTURE: GPH)(OTCQX: GPHOF) is
pleased to announce that its wholly owned subsidiary, Graphite One
(Alaska) Inc. ("Graphite One" or the "Company"), an Alaska
corporation, has executed a definitive long-term lease agreement
(the "Lease") with Kougarok LLC for its 24 unpatented federal
mining claims (the "Leased Claims"). These 24 claims, together with
certain adjoining state mining claims already owned by the Company
(the "Owned Claims"), collectively make up Graphite One's Graphite
Creek Property (the "Property").
Kougarok LLC, a member-managed Alaska limited liability company,
optioned the Leased Claims to the Company in 2012. Key provisions
of the final Lease include the following:
-- Term: an initial 20 year term, commencing effective as of
January 1,
2014, with provisions to extend for two successive 20 year
periods and,
ultimately, for as long as production continues from the
Property.
-- Advance Royalty: US $30,000 paid upon execution of the Lease
and US
$30,000 payable on or before January 1 and every anniversary
through
January 2019, then increasing by US $10,000 each year thereafter
until
production commences. All advance royalties paid may be recouped
from
production royalties.
-- Production Royalties: a percentage of the net smelter returns
on
production derived from lands, as follows: from lands in the 4
federal
claims located in 1943 (the "Oldest 4 Federal Claims") - 5%;
from lands
within the other 20 federal claims (the "Other Federal Claims")
- 2.5%;
from lands within state claims staked by the Company within the
area of
interest - 5%; and from lands within state claims acquired by
the
Company within the area of interest- 2.5%. The Company has the
option
during the Lease term to reduce all production royalties by up
to 2% by
paying US $2 million for each 1% reduction.
-- Conditional Relinquishment: the Company may elect to
relinquish one or
more of the Leased Claims and thereafter to rely on its state
mining
claims, under the terms set forth in the Lease.
The Company announced on March 3, 2014, that it had earned the
right to enter into the Lease as a result of having satisfied its
obligations under the Graphite Creek Option Agreement with Kougarok
LLC. The Company estimates that over 90% of the 17.95 million
tonnes of indicated resources (grading 6.3% graphitic carbon using
a 3% Cg cut-off grade) announced on March 17, 2015, are situated
within the Oldest 4 Federal Claims.
The United States Department of the Interior, Bureau of Land
Management ("BLM") has advised Graphite One that the 20 Other
Federal Claims were located when federal claims could be initiated
only for "metalliferous minerals" and graphite is not a
metalliferous mineral. The State of Alaska has selected all of the
lands within the Leased Claims, however, and Graphite One owns the
senior state mining claims covering the same ground. As a result,
if any of the Leased Claims are abandoned or relinquished, the
State of Alaska can acquire the affected lands as part of its
statehood entitlement and recognize Graphite One's state claims as
the senior state claims covering the new state lands. Under the
State's mining law and the current land status, the Company's Owned
Claims, as the senior state claims on the ground, would
automatically extend to the new state lands formerly within any
abandoned or relinquished federal claims, and the Company would
enjoy rights similar to those granted by the federal mining law to
the holders of valid federal claims, including the exclusive right
to mine and remove the graphite resources contained within such
lands, subject only to certain royalties owing to the State of
Alaska and Kougarok and others recognized by the Company.
The Company's Owned Claims comprise 28 state mining claims
acquired by the Company in January 2012 (the "Acquired State
Claims") and 77 state claims originally staked by the Company in
2012. In September 2014, a competing claimant advised Graphite One
that he believed the 28 Acquired State Claims had been improperly
located and thus junior to his 28 state mining locations made
later, in October 2012, on the same lands. This competing claimant
has alleged that the locator of the 28 Acquired State Claims was
not qualified to locate the claims and that such locations were
therefore null and void from the beginning, as opposed to being
merely voidable until they were acquired in January 2012 by the
Company (an Alaska corporation qualified to own state claims).
Graphite One has investigated the allegations of the competing
claimant and believes that the best interpretation of the state law
relating to qualifications as applied to this situation is
identical to that which would follow if federal mining law applied
in this situation, namely that (a) state mining locations made by
an unqualified person are voidable, not void, and (b) acquisition
of such locations by a qualified owner such as Graphite One
(Alaska) Inc. cured any defect in the locations due to the original
locator's lack of qualifications. Graphite One will vigorously
assert its rights as against this or any other competing claimant,
if the matter cannot be resolved by agreement.
Mr. David Hembree, C.P. Geol., the Company's General Manager
Operations, is a Qualified Person as defined under National
Instrument 43-101. He has verified the information contained in,
and has reviewed and approved the contents of, this press
release.
About Graphite One Resources Inc.
GRAPHITE ONE RESOURCES INC. (TSX VENTURE: GPH)(OTCQX: GPHOF) is
exploring with the intent to develop the Graphite Creek Project,
USA's largest known large flake graphite deposit situated on the
Seward Peninsula of Alaska about 60 miles north of Nome. The
Project is progressing from the exploration to the evaluation
phase. Work to date has identified a large, high grade and
at-surface resource with simple geology and good mineralization
continuity. The Project has the potential to produce products that
will effectively compete in the high end battery market (for both
electric vehicles and power storage) as well as other markets for
purified graphite and graphite by-products.
ON BEHALF OF THE BOARD OF DIRECTORS
"Anthony Huston" (signed)
For more information on Graphite One Resources Inc. please visit
the Company's website, www.GraphiteOneResources.com.
Neither the 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 release includes certain statements that may be deemed to
be forward-looking statements. All statements in this release,
other than statements of historical facts that address timing of
receipt of regulatory approvals, exploration drilling, exploitation
activities and events or developments that the Company expects, are
forward-looking statements. Forward-looking information in this
news release includes statements about inferred resource estimate
for the Graphite Creek Project, the potential existence and size of
mineralization within the Graphite Creek Project; geological
interpretations and statements about Graphite One's strategy,
future operations and prospects. Information concerning inferred
mineral resource estimates also may be deemed to be forward-looking
information in that it reflects a prediction of the mineralization
that would be encountered if a mineral deposit were developed and
mined. Information concerning inferred mineral resources estimates
also may be deemed to be forward-looking information in that it
reflects a prediction of the mineralization that would be
encountered if a mineral deposit were developed and mined. Although
the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results or developments may differ materially from those in the
forward-looking statements.
Factors that could cause actual results to differ materially
from those in forward-looking statements include market prices,
exploitation and exploration successes, continuity of
mineralization, uncertainties related to the ability to obtain
necessary permits, licenses and title and delays due to third party
opposition, changes in government policies regarding mining and
natural resource exploration and exploitation, title matters, and
continued availability of capital and financing, and general
economic, market or business conditions.
Readers are cautioned not to place undue reliance on this
forward-looking information, which is given as of the date that is
expressed in this news release, and the Company undertakes no
obligation to update publicly or revise any forward-looking
information, except as required by applicable securities laws. For
more information on the Company, investors should review the
Company's continuous disclosure filings that are available at
www.sedar.com.
The mineral resource estimates reported in this news release
were prepared in accordance with National Instrument 43-101
Standards of Disclosure for Mineral Projects ("NI 43-101"), as
required by Canadian securities regulatory authorities. For United
States reporting purposes, the United States Securities and
Exchange Commission ("SEC") applies different standards in the
classification of mineralization. In particular, while the terms
"measured," "indicated" and "inferred" mineral resources are
required pursuant to NI 43-101, the SEC does not recognize such
terms. Canadian standards differ significantly from the
requirements of the SEC. Investors are cautioned not to assume that
any part or all of the mineral deposits in these categories
constitute or will ever be converted into reserves. In addition,
"inferred" mineral resources have a great amount of uncertainty as
to their existence and great uncertainty as to their economic and
legal feasibility. It cannot be assumed that all or any part of an
inferred mineral resource will ever be upgraded to a higher
category. Under Canadian securities laws, issuers must not make any
disclosure of results of an economic analysis that includes
inferred mineral resources, except in rare cases.
United States investors are advised that current mineral
resources are not current reserves and do not have demonstrated
economic viability. All figures are rounded to reflect the relative
accuracy of the estimate and in keeping with "best practise
principles".
Contact Information
-- Contacts:
Graphite One Resources Inc.
Anthony Huston
CEO, President & Director
Tel: (604) 697-2862
Email: AnthonyH@GraphiteOneResources.com
Investor Relations Contact
1-604-684-6730
GPH@kincommunications.com
This information is provided by RNS
The company news service from the London Stock Exchange
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