Northern Graphite Retains Gmp Securities as Exclusive Financial Advisor
OTTAWA, ONTARIO -- (Marketwire) -- 04/16/12 -- Northern Graphite Corporation (TSX VENTURE: NGC)(OTCQX: NGPHF) ("Northern Graphite", or the "Company") is pleased to announce that it has retained GMP Securities L.P. ("GMP") as its exclusive financial advisor with respect to evaluating strategic alternatives for financing the Company's Bissett Creek graphite project. The Company expects to complete its bankable final feasibility study ("FS") before the end of May, 2012, with permitting expected later in the summer.
Gregory Bowes, Chief Executive Officer of Northern Graphite commented that: "Completion of the bankable FS, permitting and project financing are the last steps prior to initiating construction in the fall and we are pleased to have GMP assisting us with this process."
The Graphite Market
Graphite prices have increased substantially due to the growth of China and other emerging economies which has resulted in strong demand from traditional steel and automotive markets. In addition, new applications such as lithium ion batteries, vanadium redox batteries, fuel cells and nuclear power have the potential to create significant incremental demand growth. The manufacturing of Li ion batteries requires up to 30 times more graphite than lithium and their use in the growing EV/HEV market is expected to require significant increases in graphite production. However, graphite production and exports from China, which accounts for 70% of the world's supply, are expected to decline and an export tax and a licensing system have been instituted. Both the European Union and the United States have declared graphite a supply critical mineral.
Northern Graphite Corporation
Northern Graphite Corporation is a Canadian company that has a 100% interest in the Bissett Creek graphite deposit located in eastern Ontario. Northern Graphite is well positioned to benefit from this compelling supply/demand dynamic with a high purity, large flake, scalable deposit that is located close to infrastructure. Additional information on Northern Graphite can be found under the Company's profile on SEDAR at www.sedar.com and on the Company's website at www.northerngraphite.com.
This press release contains forward-looking statements, which can be identified by the use of statements that include words such as "could", "potential", "believe", "expect", "anticipate", "intend", "plan", "likely", "will" or other similar words or phrases. These statements are only current predictions and are subject to known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from those anticipated by the forward-looking statements. The Company does not intend, and does not assume any obligation, to update forward-looking statements, whether as a result of new information, future events or otherwise, unless otherwise required by applicable securities laws. Readers should not place undue reliance on forward-looking statements.
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.
Contacts:
Northern Graphite Corporation
Gregory Bowes, CEO
(613) 241-9959
Northern Graphite Corporation
Don Baxter P.Eng,
President
(705) 789-9706
