New Destiny Mining Corporation Announces Option to Acquire Quebec Graphite Properties
29.05.2012 | Marketwire
VANCOUVER, May 29, 2012 - New Destiny Mining Corporation (the "Company") (TSX VENTURE:NED) is pleased to announce that it has obtained an option to acquire 100% of three Graphite properties located in southwestern Quebec.The properties have been designated the North Low, Calumet and St-Aimé. North Low covers an area of 8.4km2 and is situated in Low Township approximately 50km NNW of Ottawa. Calumet property covers an area of 4.81km2 and is located 100km east of North Low property while St-Aimé property is contiguous to Timcal's producing Lac-des-iles graphite mine.
Terms
(i) $10,000 cash immediately (paid);
(ii) $50,000 cash and 500,000 Shares upon receipt of regulatory approval of this Agreement (the "Approval Date"),
(iii) $25,000 cash and 500,000 Shares 6 months after the execution date,
(iv) 200,000 Shares 12 months after the execution date.
During the period which is 12 months from the date of TSX Venture Exchange acceptance, New Destiny will complete a minimum of C$100,000 of exploration on the properties. The vendors will retain a 2-per-cent royalty on each property, of which 1 per cent can be purchased for $1-million. A finder's fee will be payable in the maximum amount allowable in accordance with the TSX Venture Exchange rules and policies.
Graphite Market
Global consumption of natural graphite has increased from approximately 600,000 tonnes in 2000 to roughly 1.2 million tonnes in 2011. Demand for graphite has been increasing by approximately 5 per cent per year since 2000 due in part to strong demand resulting from the continuing modernization of China, India and other emerging economies. In addition to traditional consumption in the steel and automotive industries, graphite also has many important new applications in lithium-ion batteries, fuel cells, and nuclear and solar power that have the potential to create significant incremental demand growth. A lithium-ion battery contains 10 to 20 times more graphite than lithium. Demand for graphite is expected to increase sharply as electric vehicles and lithium battery technologies are adopted.
Natural graphite comes in several forms: flake, amorphous and lump. Of the 1.2 million tonnes of graphite produced annually, approximately 40 per cent is of the most desirable flake type. China, which produces about 70 per cent of the world's graphite, is seeing production and export growth leveling, and export taxes and a licensing system have been instituted. A recent European Commission study regarding the criticality to the European economy of 41 different materials included graphite among the 14 materials high in both economic importance and supply risk (Critical Raw Materials for the EU, July 2010).
Graphite commodity prices have been increasing in recent months and, in the last few years, prices for large flake, high purity graphite (+80 mesh, 94-97%C) have more than doubled. High-growth, high-value graphite applications require large-flake and high-purity graphite which is the prime exploration and development target on the Company's Quebec properties.
The agreement remains subject to acceptance by the TSX Venture Exchange.
Mr. Luc Lamarche, P.Geol, a Qualified Person as defined by National Instrument 43-101, has read and approved the contents of this release.
Contact
New Destiny Mining Corp.
Robert Laird Birmingham, President
604-608-6611
rob@newdestinymining.com
www.newdestinymining.com