Mason Graphite (CVE:LLG) New Private Financing
Mason Graphite (CVE:LLG) (OTCQX:MGPHF) which owns Lac Guéret, one of the most pure graphite deposits with 99.9% Cg, has closed an additional $4.15 million private placement offering. Announced in April, the fundraising makes the total financing by the firm so far at $15.65 million, along with its $11.5 million financing to help the fund the development of its flagship Lac Guéret project.
The $4.15 million financing was completed through convertible debentures with three investors: Sodemex, which is subsidiary of the Quebec-based Caisse depot placement Quebec. Sodemex invested $3 million. The other investors were Fonds de solidarite FTQ and Fonds regional de solidarite FTQ Cote-Nord. These respected investors based in Quebec are well know that once they start investing they fund firms up to production. This is really very important as the financing market could be different if there is a stock market correction or a global recession. We believe, even then the graphite developer will be fine.
Mason (OTCQX:MGPHF) also issued 2 million warrants, which give the holders right to buy one common share at price of 91 cents. These warrants will expire on April 2017.
Jim Rogers Supports and Mason Graphite (CVE:LLG) and is Super Bullish on Graphite.
As you probably know, Jim Rogers is an investor in the company and he likes the management a lot. Especially the CEO Benoît Gascon, with over 20 years of experience in the graphite industry. Benoît was the Chief executive officer of Stratmin Graphite which owns the famous graphite deposit: Lac-des-Iles; the only producing mine in North America. He was the person responsible for negotiating the take-over of Stratmin Graphite by Imerys SA, which formed Timcal Graphite & Carbon.
Jim Rogers believes that Mason Graphite (LLG) could supply Tesla’s factory. He thinks Mason is probably the most logical graphite source for Tesla as it needs to supply its gigafactory with Li-Ion batteries. Even though they are called Li-ion, these batteries has 5% lithium only and have between 15-20 times more graphite. But that is not the only reason Jim is bullish. Its too speculative and who knows, may be Tesla could use another provider and supplier and not Mason. But Jim Rogers is bullish because of a more important reason: “graphene”.
Graphene Could Be The Most Important Material for Electric Cars
Graphene won scientists Nobel Prize because its the best electricity conductor and is a new way to use graphite for batteries. Two Manchester scientists were awarded Nobel Prize a few years ago for their ground-breaking research on graphene. Read more on the topic:
Tesla’s planned gigafactory is going to cost more than $4 billion and is planned to produce batteries for more than half a million cars every year. Of course because of that graphite production in North America, will have to increase to satisfy the demand. The company’s Lac Guéret project has proved resource of above 50 million tonnes, while the probable or industry called “inferred” mineral resources are 11.9 million tonnes. The company’s feasibility study is expected in Q4 2015. So far Mason (LLG) has received more than $15 million in private financing and it has enough money to do its feasibility study as well as to reach the production decision.
Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.