Mar. 8th, 2010
Industrial Minerals Inc. announces that its wholly-owned subsidiary, Northern Graphite Corporation ("Northern" or the "Company"), formerly Industrial Minerals Canada Inc., has completed a non-brokered private placement financing. Gross proceeds were C$1.475 million. In addition, Northern previously raised C$600,000 through the issuance of convertible secured notes.
As a result of the private placement and the conversion of the convertible secured notes the Company issued a total of 9,328,571 common shares. IDSM owns 11,750,000 common shares which represents a 55.7% interest in the Company. Subject to the receipt of all required corporate, regulatory and stock exchange approvals, Northern plans to complete a going public transaction in Canada as soon as possible and IDSM plans to distribute its Northern shares to IDSM shareholders. The Company's previously announced letter of intent to effect a business combination with Rattlesnake Ventures Inc. has been terminated and the Company is examining other alternatives. Gregory Bowes, CEO of Northern stated that "the Company is now in a much stronger financial position and will finally be able to begin advancing the Bissett Creek project towards the completion of a pre feasibility study and construction permitting."
Northern owns 100% of the large Bissett Creek graphite deposit which is located 15km from the Trans-Canada highway, east of North Bay, Ontario. A full feasibility study was completed by Kilborn Engineering and others in 1989 (which pre-dates National Instrument 43-101 and is not compliant), but Bissett Creek was not developed due to a subsequent decline in graphite prices. Graphite prices have since recovered due to the ongoing industrialization of China, India and other emerging economies. However, new applications such as Lithium ion batteries, fuel cells and nuclear and solar power have the potential to create significant incremental demand growth. There is up to 20 times more graphite than lithium, in a lithium ion battery. China, which produces 80% of the world's graphite, is seeing production and exports leveling off and export taxes and a licensing system have been instituted. With limited worldwide exploration and few potential development projects on the horizon, the Company is well positioned to benefit from the continued improvement in graphite demand and prices.
Industrial Minerals Inc. announces that its wholly-owned subsidiary, Northern Graphite Corporation ("Northern" or the "Company"), formerly Industrial Minerals Canada Inc., has completed a non-brokered private placement financing. Gross proceeds were C$1.475 million. In addition, Northern previously raised C$600,000 through the issuance of convertible secured notes.
As a result of the private placement and the conversion of the convertible secured notes the Company issued a total of 9,328,571 common shares. IDSM owns 11,750,000 common shares which represents a 55.7% interest in the Company. Subject to the receipt of all required corporate, regulatory and stock exchange approvals, Northern plans to complete a going public transaction in Canada as soon as possible and IDSM plans to distribute its Northern shares to IDSM shareholders. The Company's previously announced letter of intent to effect a business combination with Rattlesnake Ventures Inc. has been terminated and the Company is examining other alternatives. Gregory Bowes, CEO of Northern stated that "the Company is now in a much stronger financial position and will finally be able to begin advancing the Bissett Creek project towards the completion of a pre feasibility study and construction permitting."
Northern owns 100% of the large Bissett Creek graphite deposit which is located 15km from the Trans-Canada highway, east of North Bay, Ontario. A full feasibility study was completed by Kilborn Engineering and others in 1989 (which pre-dates National Instrument 43-101 and is not compliant), but Bissett Creek was not developed due to a subsequent decline in graphite prices. Graphite prices have since recovered due to the ongoing industrialization of China, India and other emerging economies. However, new applications such as Lithium ion batteries, fuel cells and nuclear and solar power have the potential to create significant incremental demand growth. There is up to 20 times more graphite than lithium, in a lithium ion battery. China, which produces 80% of the world's graphite, is seeing production and exports leveling off and export taxes and a licensing system have been instituted. With limited worldwide exploration and few potential development projects on the horizon, the Company is well positioned to benefit from the continued improvement in graphite demand and prices.
