Graphite One (TSX-V:GPH) secured $4.8 million to fund a pre-feasibility study for its Graphite Creek project in Alaska.
Taiga Mining, a controlling shareholder in Graphite One, is the company providing the loan and immediately funding $2.5 million. The study is expected to be completed by Q2-2020.
Taiga Mining, a controlling shareholder in Graphite One, is the company providing the loan
In a media statement, Anthony Huston, CEO of Graphite One, said the loan represents a strong vote of confidence and “reflects the critical need for new domestic U.S. graphite supply in all its forms.”
The executive said that according to the US Geological Survey, the United States is presently 100% import-dependent for graphite, with China the world’s leading producer.
“And according to the World Bank, global graphite demand – driven by applications in the electric vehicle battery sector and energy storage systems – is projected to rise by 383% between now and 2050,” Houston added.
The Graphite Creek property is located on the Seward Peninsula in western Alaska, along the north flank of the Kigluaik Mountains about 55 kilometers north of the city of Nome.
The project consists of 176 Alaska State mining claims covering 9,583 hectares. It has an indicated resource of 10.32 million tonnes grading 7.2% Cg, and an inferred resource of 71.24 million tonnes grading 7% Cg.