Graphite One Announces Taiga’s Purchase of NSR and Grants Long-Term Incentive Awards.
Graphite One Inc. (TSX-V: GPH) (OTCQX: GPHOF) (“Graphite One” or the “Company”) announces that Taiga Mining Company, Inc. (“Taiga”) has exercised its option to purchase a 1% Net Smelter Production Royalty (“NSR”) from the Company. The NSR is attached to 133 Alaska state claims owned or leased by Graphite One which the Company purchased on June 21, 2023 for approximately US$450,000 by issuing to the vendor 456,500 common shares of the Company at a price of CA$1.48 per share. The consideration paid for the sale of the NSR is approximately US$5,220,000, which represents the outstanding Taiga loan balance and accrued interest.
Anthony Huston, President and CEO of Graphite One, said:
With the sale of the NSR to Taiga and their continued support, Graphite One is debt free heading into 2024.
The NSR commences on the first day of the month in which the first concentrate is produced from certain of the mineral claims for a period of twenty (20) years.
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Two other NSRs on the Graphite Creek Property remain outstanding: a 5.0% and a 2.5% NSR applicable to certain Alaska state claims, of which 2% of each NSR can be purchased separately for US$2,000,000 each, leaving a 3.0% and a 0.5% NSR on their respective claims.
Grant of Long-Term Incentive Awards
The Company also announces the grant of 906,639 restricted share units (“RSUs”) and 768,880 performance share units (“PSUs”) to its officers pursuant to the terms of the Company’s Omnibus Plan. As previously announced on the January 20, 2023 press release, these RSUs and PSUs were the balance of the 2023 awards reserved for issuance in the second half of 2023 under the new compensation program and a new grant to one officer who joined the Company on April 1, 2023. Each RSU and PSU will convert into one common share of the Company on each vest date. The RSUs will vest in three tranches on the first, second, and third anniversary date from the date of grant. The PSUs will vest on the third anniversary date from the date of grant subject to the achievement of certain corporate performance criteria. Further details regarding the Omnibus Plan are set out in the management circular of the Company dated May 20, 2023, which is available on the Company’s website at www.graphiteoneinc.com or on SEDAR+ at www.sedarplus.ca.
The Company furthermore announces that the board of directors has approved a grant of 47,250 stock options (the “Options”) to an officer who joined the Company on April 1, 2023 pursuant to the terms of the Company’s Option Plan. The Options have an exercise price of $0.85 per share, being the closing price of the Company’s shares on the TSX-V on December 19, 2023. The Options vest one-third (1/3) on the first, second and third anniversary from the date of grant and expires on December 19, 2028. Further details regarding the Option Plan are set out in the management circular of the Company dated May 20, 2023, which is available on the Company’s website at www.graphiteoneinc.com or on SEDAR+ at www.sedarplus.ca.
Following the grant of Options, RSUs and PSUs, the Company has 131,850,225 common shares issued and outstanding, 9,525,329 Options, 7,395,006 RSUs and 768,880 PSUs issued under the Company’s Stock Option and Omnibus Plans.
Graphite One’s Supply Chain Strategy
With the United States currently 100 per cent import dependent for natural graphite, Graphite One is planning to develop a complete U.S.-based, advanced graphite supply chain solution anchored by the Graphite Creek resource. The Graphite One Project plan includes an advanced graphite material and battery anode manufacturing plant to be sited in the contiguous United States. The plan includes a recycling facility to reclaim graphite and the other battery materials, to be co-located at the site, the third link in Graphite One’s circular economy strategy.
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Graphite One Announces Taiga’s Purchase of NSR and Grants Long-Term Incentive Awards. source
