Canada’s Grafoid Scores Another Significant JVP with China’s Xiamen Tungsten


AA 1 grafoidKingston, Ontario’s Grafoid Inc. has signed a Memorandum of Understanding (MOU) for the establishment of a strategic joint venture partnership with China’s largest producer and exporter of tungsten products, Xiamen Tungsten Co. Ltd., which will see Xiamen take up to a 20% equity stake in privately held Grafoid, pending the completion of due diligence which is set to conclude on May 22, 2016.

 

Xiamen’s equity position in Grafoid was negotiated through its parent company, Ottawa’s Focus Graphite Inc. (TSX VENTURE:FMS) (OTCQX:FCSMF) (FRANKFURT:FKC), through the purchase of up to 7 million Grafoid common shares currently held by Focus Graphite.

“In addition to providing Grafoid with a strategic partner, Grafoid’s MOU with Xiamen, has benefits for Focus Graphite. When finalized, it will provide additional funding to allow us to advance our overall mine and transformation plant financing, and potentially open the China market to Focus Graphite for additional offtake partners and the sale of value added graphite products,” said Focus Graphite CEO and Director Gary Economo.

“Specifically, this injection of funding could enable Focus Graphite to advance our Lac Knife detailed engineering and finalize the environmental permitting process” said Economo. “And, it enables us to move to the next stage in assembling our mine CAPEX financing.”

Last September, Grafoid and Focus Graphite finalized two offtake agreements for obtaining graphite concentrate from a mining project at Lac Knife in Quebec for the next 10 years, one of the priorities of the Quebec government’s Plan Nord initiative.
Focus Graphite, with 7.9 million shares, is currently Grafoid’s largest stakeholder.

The MOU will also see the establishment of Xiamen’s business office at the Grafoid Global Technology Center in Kingston, providing Xiamen with a North American base for future business expansion, as well as the establishment of a Grafoid business office in China.

Grafoid’s path to commercialization lies in its patented product, a high-quality graphene trading under the name Mesograf.

Other terms of the MOU include the desire of Xiamen to introduce a clean energy technology platform and associated technologies to the Chinese market, and the opportunity for Grafoid to bring its suite of Mesograf and Amphioxide graphene based products to China.

With the Lac Knife project moving forward, Grafoid is well positioned to supply global markets with with high purity, value-added, cost-competitive graphite products while supporting the next generation battery development platform of Grafoid, Focus Graphite, Stria Lithium Inc., and Braille Battery Inc.

With annual revenue surpassing 10.143B CNY ($1.55B US), Xiamen, a publicly traded company listed on the Shanghai Exchange (SHA:600549), is a major player in that country’s smelting, processing and exporting of tungsten and other non-ferrous metal products, the operation of rare earth business interests, and the supply of battery materials.

Grafoid currently has 17 joint partnership ventures with industrial and academic partners, including Japan’s Mitsui & Co., Hydro Quebec, Rutgers University, the University of Waterloo, and Phos Solar Systems in Greece.

Last February, Grafoid received an $8.1 million investment from the SD Tech Fund of Sustainable Development Technology Canada (SDTC) to help automate the production of Mesograf and end-product development.

Earlier this month, Professor Aiping Yu of the University of Waterloo’s Chemical Engineering department received a $450,000 Strategic Partnership Grant through the Natural Sciences and Engineering Research Council of Canada (NSERC) to help Grafoid develop an advanced graphene fiber based wearable supercapacitor.

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Gov’t Awards $8.1 Million for Kingston Graphene Production


AA 1 grafoidThe Hon. Greg Rickford, Minister of Natural Resources and Minister Responsible for Sustainable Development Technology Canada (SDTC) announced today the award of $8.1 million to Grafoid Inc. – Canada’s leading graphene technologies and applications developer – to automate Grafoid’s production of its low-cost, high-purity MesoGraf™ graphene.

“Our government is investing in advanced clean energy technologies that create well-paying jobs and generate economic opportunities. Today’s announcement contributes to economic prosperity and a cleaner environment in Ontario and across Canada,” said Mr. Rickford, who is also the Minister Responsible for Federal Economic Development Initiative for Northern Ontario.

The contribution from SDTC is an $8.1 million non-repayable grant to design and test the automation system for the production of constant quality MesoGraf™. Further, the grant enables the testing of pre-commercial products using MesoGraf™ graphene from the automated system.

The minister announced the funding at a news conference in Toronto attended by Grafoid and five other Canadian non graphene-related technology companies.

Ottawa-based Grafoid, the developer of a diverse range of renewable energy, industrial, military and consumer applications from its MesoGraf™ materials is the first Canadian graphene technologies developer to partner with the Canadian Government.

Canada joins the European Union, the United States, China and South Korea in providing funding assistance to privately-held graphene enterprises.

Grafoid Founding Partner and CEO Gary Economo praised Canada’s decision to stake its claim in the graphene space as the world races toward the commercialization of a potentially disruptive, pan-industrial nanomaterial.

“This is a great day for the Canadian graphene industry and for Grafoid, in particular, because it leads us out of the laboratory and into the automated manufacturing of the world’s new wonder material,” he told the news conference.

“Effectively, today’s $8.1million Federal government funding grant enables us to take a giant leap towards graphene’s broader commercialization,” Mr. Economo said. “It will permit us to increase MesoGraf™ production output from kilograms to tonnes within our global technology centre in Kingston, Ontario.

“For this we are truly appreciative of Canada’s actions in recognizing our science and commercial objectives. In the past three years Grafoid has travelled the globe staking our unique position in the graphene revolution. Today we are gratified to do this going forward with the Government of Canada,” Mr. Economo said.

Grafoid produces MesoGraf™ directly from high-grade graphite ore on a safe, economically scalable, environmentally sustainable basis. Its patent pending one-step process is unique in the industry, producing single layer, bi-layer and tri-layer graphene.

It is then adapted – or functionalized – by Grafoid for use in biomedical, renewable energy storage and production, military, aerospace and automotive, additive materials for 3D printing, water purification, construction, lubricants, solar solutions, coatings, sporting equipment and other sectoral applications.

At one atom thin, graphene is a two-dimensional pure carbon derived from graphite.

It is the strongest material known to science, is barely visible to the naked eye, yet it holds the potential to become a disruptive technology across all industrial sectors and ultimately, for the benefit of humanity.