Northern Graphite Signs Equipment Financing Deal with Caterpillar
OTTAWA, ONTARIO -- (Marketwire) -- 01/08/13 -- Northern Graphite Corporation (TSX VENTURE: NGC)(OTCQX: NGPHF)(the "Company") announces that it has signed indicative term sheets with Caterpillar Financial Services Corporation ("Cat Financial") to provide financing for the purchase of up to US$17.5 million in Cat mining and Cat power equipment for the Company's Bissett Creek graphite project. Cat Financial has preliminarily indicated its additional interest in participating in a Project Debt Facility, subject to receipt of an Information Memorandum relating thereto and its agreement with the terms and conditions thereof.
The equipment financing facility will cover the cost of the mobile mining fleet and the purchase and installation of natural gas powered generators including the engineering, procurement and construction management related thereto. The Company's recently completed feasibility study contemplated mining being carried out by an independent contractor. By buying and operating its own mining fleet, the Company anticipates that it will reduce operating costs by in excess of US$50/t per tonne of concentrate produced. Closing of the financing facilities is subject to customary conditions including due diligence, satisfaction of conditions precedent, internal Cat Financial credit approval and negotiation and execution of definitive legal documentation.
Gregory Bowes, CEO, commented that; "The financing package potentially represents one third of the capital required to develop Bissett Creek and is an important milestone in achieving our goal of financing construction in a manner that minimizes dilution and maximizes shareholder value."
About Northern Graphite Corporation
Northern Graphite Corporation (TSX VENTURE: NGC) is a Canadian company that has a 100% interest in the Bissett Creek graphite deposit located in eastern Ontario. Northern Graphite is well positioned to benefit from the compelling supply/demand dynamic that has developed in the graphite industry with a high purity, large flake, scalable deposit that is located close to infrastructure. Permitting is expected to be completed in the first quarter of 2013, following which mine construction could commence. Additional information on Northern Graphite Corporation can be found under the Company's profile on SEDAR at www.sedar.com and on the Company's website at www.northerngraphite.com
This press release does not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction.
This press release contains forward-looking statements, which can be identified by the use of statements that include words such as "could", "potential", "believe", "expect", "anticipate", "intend", "plan", "likely", "will" or other similar words or phrases. These statements are only current predictions and are subject to known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from those anticipated by the forward-looking statements. The Company does not intend, and does not assume any obligation, to update forward-looking statements, whether as a result of new information, future events or otherwise, unless otherwise required by applicable securities laws. Readers should not place undue reliance on forward- looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Greg Bowes
CEO
(613) 241-9959
Steve Thompson
CFO
(613) 241-9959
Don Baxter P.Eng
President
(705) 789-9706