Northern Graphite Options Ni-Cu-Co Project in Voisey’s Bay Region

June 8, 2021 – Northern Graphite Corporation (NGC:TSX-V, NGPHF:OTCQB) (the “Company” or “Northern”) is pleased to announce that it has entered into an option agreement (the “Option Agreement”) to earn up to an 80 per cent interest in the South Okak Ni-Cu-Co project (“South Okak ”), located 80 km southeast of Voisey’s Bay, Labrador. The South Okak area produced some of the best Ni-Cu-Co drill intervals outside of Voisey’s Bay during the 1990s exploration rush. The 6,350 hectare South Okak property has been consolidated into one exploration license for the first time and covers the most prospective ground. A substantial amount of historical data is available and advances in geophysical data processing including 3D modelling, and a much better understanding of the Voisey’s Bay geological controls, has already resulted in the identification of a number of highly prospective targets.

 

The South Okak property is located along the main structural break that hosts the high grade Voisey’s Bay deposits which are contained within a large, lower grade disseminated halo. Previous exploration in the South Okak area also resulted in the discovery of several areas containing significant intervals of disseminated low-grade Ni-Cu-Co mineralization but their significance was not fully appreciated. These areas need a second look now that the Voisey’s Bay model is better understood. Numerous untested geophysical anomalies exist within the claims and provide the Company with immediate exploration targets. Northern has commenced detailed data compilation and 3D modelling of the historical high-resolution airborne geophysical and drill hole data to identify the highest priority targets.

 

Gregory Bowes, CEO commented that: “The Company has been searching for a complimentary battery minerals asset for some time and South Okak exactly meets our criteria. It is a relatively advanced stage project with a substantial body of historical work that has enabled high quality targets to be identified relatively quickly with modern technology and geological concepts. It is elephant country in a politically stable jurisdiction and Ni/Cu/Co are key battery metals that will be in high demand as the electric vehicle and battery markets grow.”

 

The Option Agreement enables Northern to earn up to an 80 per cent interest in the South Okak Project by spending $1.5 million over four years, together with cash payments and share issuances, as follows:

 

• Payment of $50,000 in cash and the issuance of 500,000 common shares on closing;

• Cumulative expenditures of $250,000 prior to March 1, 2022 and $500,000 prior to March 1, 2023;

• Payment of $75,000 in cash, plus $200,000 in cash or common shares at Northern’s option, on the 24 month anniversary of the Option Agreement.

• Cumulative expenditures of $1,000,000 prior to March 1, 2024;

• Payment of $75,000 in cash, plus $200,000 in cash or common shares at Northern’s option, on the 36 month anniversary of the Option Agreement; and

• Incurring cumulative expenditures of $1,500,000 prior to March 1, 2025;

 

Northern will earn a 49 per cent interest in South Okak by making the first two payments and incurring exploration expenditures of $1,000,000 and will earn an 80 per cent interest upon completing all payments and incurring the $1,500,000 in expenditures. The owners of South Okak will then be carried to production on their 20 per cent interest.

 

Northern has approved an initial budget of $500,000 for exploration activities during the 2021 exploration season, consisting of sampling, mapping and geophysics, together with a review of historical, untested targets. The Option Agreement is subject to the approval of the TSX Venture Exchange. Any securities issued in connection with the Option Agreement will be subject to applicable statutory hold periods for a period of four months from the date of issuance.

 

About Northern Graphite

 

Northern Graphite is a mineral development and technology company focussed on developing its Bissett Creek graphite deposit and upgrading mine concentrates into high value components used in lithium-ion batteries, electric vehicles, fuel cells, graphene and other advanced technologies. An independent study estimates that Bissett Creek will have the highest margin of any existing or proposed graphite deposit due to its very favorable location, simple metallurgy and the high quality of its concentrates which the Company believes will provide a competitive advantage in manufacturing products for the green economy.

 

Bissett Creek is an advanced stage project with a full Feasibility Study and its major mining permit which puts the Company in position to make a construction decision, subject to financing. The Project is located in the southern part of Canada between the cities of North Bay and Ottawa and close to the Trans-Canada highway providing ready access to labour, supplies, equipment, natural gas and markets.