SRG Graphite Signs MOU with Great Lakes Graphite for Supply of Graphite Concentrate

2017-11-13

Nov. 7, 2017 - SRG Graphite Inc. today announced that SRG’s subsidiary, SRG Graphite International Inc. (“SRGI”) and Great Lakes Graphite Inc. have executed a Memorandum of Understanding (“MoU”) whereby the Companies agree to work towards negotiating a supply agreement from SRG’s Lola Deposit located in Guinea, West Africa.

Highlights

• SRGI and GLK have executed an MoU regarding the potential supply of between 5,000 and 20,000 tons of natural flake graphite per annum.
• The MoU Confirms continued interest in SRG’s graphite concentrate.

The MoU calls for the Companies to work towards establishing a potential supply agreement. For GLK, the agreement represents the opportunity to expand the number of product offerings and enter new markets. The MoU specifies that the Companies will seek to negotiate an agreement for the annual supply of between 5,000 and 20,000 tons of natural flake graphite concentrate.

SRG is developing a high-quality graphite deposit in Guinea, West Africa. The Lola Graphite deposit is located approximately 1,000 kilometers east of Conakry, the capital of the Republic of Guinea. The first 20 meters or so of the deposit are well weathered (lateralized), freeing graphite flakes from the silicate gangue and thus allowing for easy grinding and optimal recovery of all large and jumbo flakes. The graphite mineralization continues at depth within the non-weathered sheared gneiss.

Metallurgy

• Lola graphite has favorable ash composition and the comparably low efforts required to attain high carbon grades.
• The graphite is seemingly suitable for highly demanding applications like Lithium Ion batteries or synthetic diamonds.
• The purification performed was “mild” compared to the “harsh” purification usually applied for Lithium-Ion battery grade, thereby attesting again to the likelihood that the material will be very suitable for such an application.
   
• The volatiles are low, oxidation resistance is very high and the specific surface area is in the normal range.
• The graphite from the Lola deposit has a high bulk density (>700 g/l); typical Chinese graphite has bulk densities of 450-550 g/l for +80 mesh.
• Doftner-Anzaplan from Germany reported that bulk density, tap density, morphology, chemical purity and specific surface area of the spherical graphite product obtained from SRG’s Lola graphite deposit are similar to typical spherical graphite products in the market. The produced graphite concentrate is well suited for generating anode material for lithium-ion battery.

The arrangement can provide a potential source of high quality large and jumbo flake graphite that will enable the GLK to expand the number of high value products that can be offered to their customers. GLK’s CEO Paul Gorman said, “We are very excited to be working with SRG Graphite. They are an extremely capable group that is developing a highly attractive project. Due to the indications that we are getting from customers as we progress through our product qualifications, we understand that it is imperative for us to be able to demonstrate that we have access to the supply chains required to service very large customers.”