TORONTO, ON / ACCESSWIRE / July 24, 2024 / Gratomic Inc. ("Gratomic", "GRAT", or the "Company") (TSXV:GRAT)(FSE:CB82) is pleased to provide an update to shareholders on matters pertaining to the strategic path of the Company.
Bruno Baillavoine, Executive Chair of the Company, stated "Gratomic continues to work towards advancing its strategic path. Though progress is never as fast as one wishes, Gratomic continues to make significant steps forward and key decisions have taken place. We remain fully confident that we will complete the journey along the strategic path we set out for the Company.
The following are some key improvements, changes and progress made over last three months:
-
Gratomic has taken steps to significantly reduced expenses in Namibia, Canada and Brazil by a total of $115,000 per month..
-
The Company is in the process of selling certain non-core assets. This includes a house the Company owns in Windhoek. Proceeds will be used for working capital and to complete a technical report on the Aukam Property.
-
This will bring in some additional short-term cash, better used at the Aukam site.
-
It will reduce on-going running costs.
-
It is consistent with the Company focusing its resources towards achieving commercial goals.
-
Gratomic is also focused on reducing its current debt level.
-
The Board thanks the contribution made by several key individuals no longer with the Company. In particular, Armando Farhate, Director and COO, Karl Trudeau also a Director and Stephen Woodhead CFO.
-
The responsibilities of Mr. Farhate as COO will be assumed by Arno Brand, CEO.
-
The reduction in management fees and overhead expenses is consistent with the go forward financial strategy of the Company.
-
Mr. Woodhead is being replaced by interim CFO Daniel Baard, a current board member and CPA.
-
We now have a simpler, smaller, less costly and thus, more effective new Board structure. It leaves room for changes that will be required for the proposed admission of the Company's securities to the Alternative Investment Market ("AIM") of the London Stock Exchange as announced by Press Release dated October 26th, 2023.
-
To compensate Bruno Baillavoine, Executive Chair of the Company, for his increased responsibilities in the management of the Company in these difficult market conditions, the Board has granted Mr. Baillavoine 750,000 stock options at an exercise price of $0.20 and a further 750,000 stock options at an exercise price of $0.30, both exercisable for a period of three years after July 1, 2025 to aligned his interests more directly with the interest of Shareholders.
-
Our CEO, Arno Brand, is providing further short-term financial support to demonstrate his continued confidence in the Company's future prospects. He will be focused on two key areas:
-
Fund raising, a key task for a junior exploration company, until it becomes a producing mining company, generating revenues and cash flows.
-
Taking the Aukam site to production.
-
Danie Baard, known by many Shareholders as a Non-executive Director has been appointed as our Interim CFO.
-
Danie is highly qualified to assume this additional responsibility. He has been actively involved in the financial affairs of the Company, is well respected internationally and in the financial community and is a registered CPA.
-
He will be assuming all of the functions of a CFO formally handled by Mr. Woodhead.
-
Helao Shivolo, well known in Namibia, joined Gratomic as Government Liaison Officer, (Press Release dated April 30th, 2024).
-
Amongst others, Helao holds a Bachelor of Science Honor in Geology and a postgraduate Diploma in Business Management and Administration.
-
For over a decade, he worked within the Namibia Ministry of Mines.
-
We are progressing with a Royalty deal with Tri Stream Capital (see Press Release dated June 17th 2024).
Bruno Baillavoine commented "On behalf of the Board let me say that we appreciate the continued support from our loyal Shareholders, which we never take it for granted."
Gratomic will continue its geological development to complete a Technical Report for Aukam in accordance with the provisions of NI 43-101. This will be achieved by continuing the benching program executed in 2023, when we were able to extract 12 months' worth of plant feed to the feed bin, and by an additional drilling program to be performed.
Gratomic wishes to emphasize that no Preliminary Economic Analysis, Preliminary Feasibility Study or Feasibility Study has been completed to support any level of production. In fact, no mineral resources let alone mineral reserves demonstrating economic viability and technical feasibility, have been delineated on the Aukam property.
The Company is working towards completing a Feasibility Study (FS) on the Aukam Property. The study, its recommendations, and their subsequent implementation, will provide conclusions and recommendations at a FS level of comfort about scaling up the existing processing plant at Aukam to a commercial scale processing facility capable of producing the desired concentrate grades and production rates.
Gratomic wishes to emphasize that the supply of graphite is conditional on Gratomic being able to bring the Aukam project into a production phase, and for any graphite being produced to meet certain technical and mineralization requirements.
Risk Factors
No mineral resources, let alone mineral reserves demonstrating economic viability and technical feasibility, have been delineated on the Aukam Property. The Company is not in a position to demonstrate or disclose any capital and/or operating costs that may be associated with the processing plant until a FS is completed.
The Company advises that it has not based its production decision on even the existence of mineral resources let alone on a Preliminary Feasibility Study or FS of mineral reserves, demonstrating economic and technical viability, and, as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit.
Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will begin as anticipated or at all or that anticipated production costs will be achieved.
Failure to commence production would have a material adverse impact on the Company's ability to generate revenue and cash flow to fund operations. Failure to achieve the anticipated production costs would have a material adverse impact on the Company's cash flow and future profitability.
About Gratomic
Gratomic is a multinational company with projects in Namibia, Brazil, and Canada. The Company aims to become a leading graphite supplier and to secure a strong position in the electric vehicle battery supply chain through the development of its flagship Aukam graphite mine and ongoing exploration at the Capim Grosso property. The Company will continue to explore graphite opportunities that show the potential to produce the specific flake size and purity required for active anodes.
Large quantities of high-quality vein graphite have been shipped for testing to confirm its suitability as anode material. Gratomic is confident that the test results will provide a unique competitive advantage in the desired target markets. The Company will continue to update the public on the status of these tests and will share results as they become available.
For more information: visit the website at www.gratomic.ca or contact:
Arno Brand at abrand@gratomic.ca or (416) 561- 4095
Subscribe at gratomic.ca/contact/ to be added to our email list.
For Marketing and Media information, please email: info@gratomic.ca
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
Forward Looking Statements:
This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward-looking statements are neither promises nor guarantees and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in Canada (available at www.sedarplus.com)
SOURCE: Gratomic Inc.
View the original press release on accesswire.com
