Applied Graphite Technologies Acquires the Queens Mine
VANCOUVER, BC, March 26, 2024 /CNW/ - Applied Graphite Technologies Corp. ("AGT") (TSXV: AGT), is pleased to announce that it has purchased the past-producing Queen's Mine in Sri Lanka. The property is centrally located between AGT's Dodangaslanda Graphite Properties. The combined properties will be called the Queens Mine Complex ("QMC").
The Queens Mine was reported to be extracting high-grade graphite veins at a rate of 20 tonnes per month. The former operator had intentions to ramp up production to 3,000 tonnes per year. Adits which provided access to the underground workings expose at least six graphite veins over a total width of 25 meters, with veins varying in thickness up to 0.4 metres.
The former operator had done extensive laboratory testing on its run-of-mine ("ROM") tonnes which consisted of high-grade graphite +95 Cg. Vein graphite direct from the mine will sell for $2,000 per tonne. The ROM vein graphite, when upgraded to battery-quality graphite, sells for between $8,000 and $12,000 per tonne. The demand for battery ready graphite will reach five million tonnes per annum by 2030, according to Benchmark Mineral Intelligence.
AGT plans on making the QMC a priority to re-commence bulk shipping of the high-grade vein graphite material once it has completed its mine permitting and development on the prospect.
"We are extremely pleased to have acquired the QMC, thanks to our strategic in-country relationships," comments Don Baxter, President, and CEO. "From my experience with multiple OEMs regarding battery ready graphite, they want to see the ability to produce large tonnages for their battery requirements. The QMC will enable us to plan near term operations to illustrate potential from our properties to satisfy OEM requirements."
Options Granted
AGT has granted 800,000 stock options at an exercise price of $0.15, with a five year term expiring March 23, 2029 to consultants, directors, and officers of the company.
Applied Graphite Technologies is developing the Queens Mine Complex in Sri Lanka. The QMC is on private land in the heart of the vein graphite district, with historical workings and vein graphite outcrops. Vein graphite is naturally high grade (+95% carbon content in the ground) and does not require primary processing. Testing of vein graphite in lithium-ion battery anodes has shown very high capacities, performing better than synthetic graphite. Natural vein graphite has a far superior ESG footprint than synthetic and is cheaper without compromising performance.
The technical information in this news release has been prepared by Don Baxter, P.Eng., a "qualified person" as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101").
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking information as such term is defined in applicable securities laws, which relate to future events or future performance and reflect management's current expectations and assumptions. The forward-looking information includes statements about Applied Graphite Technologies (AGT)'s grids, plans to undertake additional drilling and to develop a mine plan, and to commence establishing mining operations. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to AGT, including the assumption that, there will be no material adverse change in metal prices, all necessary consents, licenses, permits and approvals will be obtained, including various Local Government Licenses and the market. 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. Risk factors that could cause actual results to differ materially from the results expressed or implied by the forward-looking information include, among other things, an inability to reach a final acquisition agreement, inaccurate results from the drilling exercises, a failure to obtain or delays in obtaining the required regulatory licenses, permits, approvals and consents, an inability to access financing as needed, a general economic downturn, a volatile stock price, labour strikes, political unrest, changes in the mining regulatory regime, a failure to comply with environmental regulations and a weakening of market and industry reliance on high quality graphite. AGT cautions the reader that the above list of risk factors is not exhaustive.
SOURCE Applied Graphite Technologies Corporation
Don Baxter, Chief Executive Officer, +1 (705) 787-5942, [email protected]
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