Payment of the Investment Amount is conditional upon satisfactory completion of due diligence by TSC and the parties entering into a definitive agreement (the 'Definitive Agreement') within 90 days of the execution of the LOI. The Definitive Agreement will include terms and conditions, representations, warranties, covenants and agreements customary for such a Transaction. The Definitive Agreement will also include certain milestones to be negotiated and specified in the Definitive Agreement.
Upon receipt of the Investment Amount,
TSC will be primarily responsible for the preparation of the Definitive Agreement. The Company will be responsible to pay all reasonable and properly incurred expenses of TSC's due diligence exercise to a maximum of
An arm's-length party, engaged by
The Transaction is subject to regulatory approval.
The Company intends to obtain a Feasibility Study (FS) on the Aukam Processing plant. The study, its recommendations, and their subsequent implementation, will provide conclusions and recommendation at a FS level of comfort relating to the scale up of the existing processing plant to a commercial scale processing facility capable of producing the desired concentrate grades and production rates.
Risk Factors
No mineral resources, let alone mineral reserves demonstrating economic viability and technical feasibility, have been delineated on the Aukam Property. The Company is not in a position to demonstrate or disclose any capital and/or operating costs that may be associated with the processing plant until the FS (Feasibility Study) is completed.
The Company advises that it has not based its production decision on even the existence of mineral resources let alone on a Preliminary Feasibility Study or FS of mineral reserves, demonstrating economic and technical viability, and, as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit.
Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will begin as anticipated or at all or that anticipated production costs will be achieved.
Failure to commence production would have a material adverse impact on the Company's ability to generate revenue and cash flow to fund operations. Failure to achieve the anticipated production costs would have a material adverse impact on the Company's cash flow and future profitability.
About
Large quantities of high-quality vein graphite have been shipped for testing to confirm its suitability as anode material.
On the
Contact:
Tel: (416) 561- 4095
Forward Looking Statements
This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. 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. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in
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