https://www.miningweekly.com
Products
Products
products

Northern Graphite in ‘comfortable position’ to finance Lac-des-Iles restart

30th November 2023

By: Creamer Media Reporter

     

Font size: - +

Canadian firm Northern Graphite is in a “comfortable position” to safely finance the restart of the Lac-des-Iles (LDI) mine, in Quebec, CEO Hugues Jacquemin said on Wednesday.

The company improved its cash position with $1-million in secured debt and $2-million in royalty financing, provided by funds managed by Sprott Resource Streaming and Royalty.

The financing was completed through amendments to Northern Graphite’s April 2022 senior secured credit agreement and royalty agreement with Sprott in connection with the financing of the acquisition of  LDI and Okanjande graphite mine, in Namibia.

Under the amendments to the royalty agreement, Northern Graphite has sold an additional royalty on gross sales revenue (GRR) from LDI to Sprott for $2-million, in addition to the 9% GRR from LDI previously sold to Sprott for $4-million in April 2022. The additional GRR is for 4% of graphite concentrate sales revenue from LDI up until it has been paid on sales of 45 000 t of graphite concentrate, after which it will be reduced to 0.25% for the remaining life-of-mine at LDI.

Northern Graphite on November 1 resumed processing ore at LDI, amid rising market demand and to restock inventories for certain products.

During the third quarter, total sales were 2 587 t, representing a 25% increase over the 2 016 t sold in the second quarter.

Edited by Creamer Media Reporter

Comments

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (26/04/2024)
26th April 2024 By: Martin Creamer
Mining Weekly Editor Martin Creamer
Copper shares soar and green hydrogen goes digital
26th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.29 0.326s - 91pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: