LLG – Mason Graphite Appoints Chairman of NanoXplore After Closing First Tranche of Acquisition

Mason President and CEO, Benoit Gascon explaining the principals of graphite to Larry King (Photo: Mason Graphite Inc.)

Mason President and CEO, Benoit Gascon explaining the principals of graphite to Larry King (Photo: Mason Graphite Inc.)

Mason Graphite (LLG:TSXV) which is developing the high-grade, large flake, Lac Gueret graphite deposit in Quebec has closed the first tranche of their investment in NanoXplore who holds a proprietary technology for cost-effectively producing graphene from graphite.  Mason announced today that it has closed the first $350,000 for 20% of NanoXplore.  Mason’s President and CEO, Benoit Gascon and CFO, Luc Veilleux were appointed Chairman and CFO of NanoXplore, respectively.  Furthermore, Mason has been appointed the sales, marketing and distribution agent for the products produced from NanoXplore.

“We are excited to officially embark on our venture with NanoXplore,” commented
Mr. Gascon, president and chief executive officer of Mason Graphite. “We believe
that our combined experts and projects will result in strong synergies, with an
opportunity to pair our potential low-cost flake graphite from the Lac Gueret
project with potentially low-cost graphene production from NanoXplore’s
proprietary process.”

Mason is acquiring a total of a 40% interest in NanoXplore for a total of $700,000.  The private company has developed a proprietary technique is a low-cost, low-energy, safe and scalable electrochemical conversion method, which turns natural-flake graphite into
graphene.  Other methods for turning graphite into graphene have proved to be uneconomic and not scalable.

Shares are up over 122% in the past 3 months as the company derisked their Lac Gueret project by completing an updated resource estimate and metallurgy work which saw resources grow by over 650%.  The company is currently working on developing a detailed scoping study which should see capex remain in the $90 million range.  If the company is able to resolve the financing overhang associated with that $90 million price-tag, shares should continue higher.

Here’s the short-term chart:

LLG Chart
LLG data by YCharts

Read: Mason Graphite Closes First Tranche of its Investment in Group Nanoxplore Inc.

Liquid Dynamite For Tiny Companies: LD In LA

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Topics: Coastal Contacts, Inovio, American Sands, Stockr, Mason Graphite, Tembo, GSV & Sunny LA

LOS ANGELES — Just back from getting my batteries charged at LD Micro in Bel Air.

About 240 companies — four or five gold | a dozen energy | and the rest Biomedical, Internet, retail, wholesale, financial, media — and nearly all below $400 million market size.

Let me say that the four-track conference is “all companies all the time.” [Editor: You just said it.] Sure, LD splays out the food at the Luxe Sunset in Bel Air, employs wanna-be actresses (and actors?) as hosts, guides and serves excellent coffees and teas.

Micro cap bufet

Micro cap buffet

At least one of LD’s parties, my lips are supposed to be sealed, was epic. I left in the middle, which is where epics (literary tradition) are designed to begin.

The LD tracks are the thing. The 30-minute one-on-ones, too. Very early morning through 5:30 p.m. for three days. Each company gets 25 minutes. I am drenched with data and promises.

The oneskies take place everywhere on the hotel property, all numbered on patios, in the bar, on the terrace. The Luxe in Bel Air sits just below Getty Museum and is a smart little walk up Sunset to Brentwood, or to Beverly Hills. I used to go there when the hotel was under different management 14 and 12 years ago, with my family. Great pool, huge rooms, lots of sun and neat outdoor breakfasts surrounded by Hollywood media execs all duded up with no socks, fancy loafers and high-heels.

This time, I ran into old acquaintances, including Vinny Jindal, a Los Angeles hip cat who is running a private investor-relations network powered by technology: it is called Stockr. Vinny and his wife just had a baby. He is one to watch. Vinny, that is, and let’s hope the baby. Stockr is, as stated, private. I just joined the free network, which connects companies, analysts, investors, media professionals and so on.

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LLG – Why Mason Graphite Is Pinnacle Digest’s Next Featured Company (Sponsored)

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The Lac des Iles graphite mine in Quebec is the larger of two Canadian graphite producers, and owned by Imerys S.A., a multi-billion dollar French multinational company which specialises in the production and processing of industrial minerals. Imerys has been around for nearly 140 years.

The Lac des Iles graphite mine, which is ran by Switzerland based Timcal Graphite & Carbon, a subsidiary of Imerys, has been in production for over twenty years, and produces graphite products of various sizes and purities which are shipped all over the world. The mine is one of the largest graphite producers and suppliers of graphite on the planet.

Key fact: Timcal, owned by Imerys, is a world leader in graphite production.

The story behind the discovery and development of the Lac des Iles graphite mine goes like this:

Stratmin Graphite took the mine into production in 1989, but was taken-over by Imerys in 1996; Timcal Graphite & Carbon, a subsidiary of Imerys, began to run the world-class mine. The man responsible for orchestrating the complete takeover of Stratmin Grahpite by Imerys, who then immediately began running operations for Timcal Graphite & Carbon, was Canadian miner and entrepreneur, Benoit Gascon – the CEO of our new Featured Company.

Benoit was born in Quebec, and has spent virtually all of his professional life in the graphite sector. In the early 1990′s he was the CEO of Stratmin Graphite, which initially brought the Lac-des-Iles deposit into production. Following the acquisition by Imerys, Benoit managed operations for Timcal Graphite & Carbon for roughly 20 years.

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LLG – Mason Graphite Gives Lac Gueret Update

Lac Gueret project history (Company)

Lac Gueret project history (Company)

Mason Graphite (LLG:TSXV) has updated the market with regards to progress at their Lac Gueret graphite project in northeastern Quebec in a news release out this morning.

Lac Gueret has had extensive development work done to date including a PEA earlier this year which envisioned a low capital intensity, high-grade, long-life asset.  The company also completed initial metallurgical work which showed high recovery rates of 96%.

Mason intends to complete an updated resource estimate which should be out by the end of 2013.  The company also intends to complete a 15,000m drill campaign, detailed metallurgical testwork, a feasibility study and advancement of permitting; all of which are anticipated to be completed over 2014.

LLG CEO Benoît Gascon

LLG CEO Benoît Gascon

Benoit Gascon, president and CEO of Mason Graphite, who was formerly CEO of Timcal Graphite & Carbon, commented: “The recent developments at our Lac Gueret project have all either met or exceeded our expectations.” Mr. Gascon continued, “we believe that our project has world-class potential and we will continue to work diligently to advance the project and achieve our objective of becoming a graphite producer as quickly as possible.”

Management appear to be confident in their ability to add value over the next 12 months as they have extended 12.6 million warrants at an exercise price of $1, and, according to the company, they are looking to this as a potential source of capital early in 2014 (currently trading around $0.37 per share).  The company raised $5 million in June of this year which should see them through their next drill campaign.

Here’s the release: Mason Graphite Provides Corporate Update

LLG is a client.  This is an opinion and not investment advice.  Due your own due diligence.

LLG – Mason Graphite Grabs Attention with 99.9% Pure Graphitic Carbon

Mason-Graphite2-300x200This morning graphite developer, Mason Graphite (LLG:TSXV) announced some surprising results which are not likely to be picked up by the markets.  The company received results from the preliminary purification of the graphitic carbon concentrates from the company’s Lac Gueret project located in Quebec.  Using conventional hydrometallurgical processes, in lock cycle tests, the company received graphite concentrates of 99.9% pure Cg.

Mason President & CEO Benoit Gascon

Mason President & CEO Benoit Gascon (former President & CEO of North America’s only producing graphite deposit (sold to Timcal))

Benoit Gascon, President and CEO of Mason Graphite, commented: “Having reached 99.9 per cent Cg from the very first run of testing, without any optimization, reaffirms our belief in the exceptional quality of the graphite hosted on our property. These high purity levels are required in many industrial applications including electrochemical applications like lithium-ion batteries which are used in electric vehicles, portable electronics and cordless power tools, which represent a significant and growing market.”

Here’s the release: Mason Achieves Purity of 99.9% Graphitic Carbon from Preliminary Purification Trials

Mason's Lac Gueret Property Location (Company)

Mason’s Lac Gueret Property Location (Company)

The company put together a small, but high-grade, deposit based on 25 drill holes and 2,285m of drilling completed between 2003-2006.  The resource was comprised of 300Kt at 24.4% Cg in the measured category and another 7.3Mt at 20.2% Cg in the indicated category.  As is usually the case, grade is king and the grades seen at Lac Gueret are unique in graphite and put them in top quartile of graphite deposits.  Over 2012, the company completed 24,345m and 146 more holes which will be the basis of an updated resource estimate.  Based on this increase in drilling activity, we would expect this resource to grow significantly.  The updated resource is expected by the end of November.

Recall, Zenyatta (ZEN:TSXV) has had some recent success in a drilling campaign which saw the company hit some impressive bulk tonnage holes, such as 360.8m of 5.1% Cgr.  Compare this to the grade seen at Lac Gueret project, including 113m of 15.5% Cgr and 88.5m of 21% Cgr, and you can see the potential.  The company released a preliminary economic assessment on the project in April 2013, which showed manageable capex (~$90M) and robust economics (pre-tax NPV(8%) of $364M and 33.7% IRR).

Watch for the updated resource estimate (end of November 2013) and an updated scoping study to follow.

Here’s the PEA highlights: Mason Announces Robust PEA, Featuring 22 Years of Production at 27.4% Cgr

LLG is a client.