Focus Graphite and Graphene Company Grafoid Inc. Announce 10 year Strategic Offtake Agreement

Focus Graphite (TSXV:FMS, OTCQX:FCSMF) has announced two offtake agreements with private graphene company Grafoid. Focus’ stock price rallied 17.5 percent to $0.235 per share on Monday as the market reacted to the news.

The first offtake entails Grafoid’s rights to receive at its discretion a maximum of 1,000 tonnes of high purity large-flake graphite concentrate (98.3 percent total carbon) each year for 10 years. The graphite would be acquired from Focus’ Lac Knife mine in Quebec. For the second offtake contract, Grafoid is entitled to up to 25,000 tonnes of graphite concentrate (98.3 percent total carbon) each year for 10 years from the same Quebec mine.

Focus Graphite projects that the Lac Knife large-flake graphite concentrate production will be 14,606 tonnes per year. Grafoid’s first offtake will be up to 6.8% of this large-flake production and 56.4% of Lac Knife’s other production flake types which totals 44,300 tonnes per year.

Grafoid has stated that the high purity graphite will be used for next generation graphene technologies such as:

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Graphite prices set to increase.

An attempt to preserve China’s position in the graphite marketplace by restricting supplies may cause a welcome increase in the share price of companies around the globe. With a market share of nearly 80% China is hoping to retain as much of its supply as possible, aiming in the long run to gain a stronger position as graphene and graphite based products become more commonplace. 

The Chinese curtailment of its supply will inevitably cause smaller mining companies and suppliers to flourish in the short term. One such company Archer Exploration (ASX:AXE), an Australian mining firm, anticipate a rise in the price of the raw material.

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