Mason Graphite Inc.
TSX VENTURE : LLG
OTCQX : MGPHF

Mason Graphite Inc.

September 27, 2016 09:05 ET

Mason Graphite Closes $28.8 Million Bought Deal Private Placement Offering

MONTRÉAL, QUÉBEC--(Marketwired - Sept. 27, 2016) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Mason Graphite Inc. ("Mason Graphite" or the "Company") (TSX VENTURE:LLG)(OTCQX:MGPHF) is pleased to announce that it has closed the bought deal private placement offering announced on September 6, 2016.

The Company issued, on a bought deal basis, a total of 26,162,500 common shares (the "Shares") at a price of $1.10 per Share, which includes the exercise of the underwriters' option (the "Underwriters' Option") in full for aggregate gross proceeds of $28,778,750 (the "Offering").

As part of the Offering, Ressources Québec, a subsidiary of Investissement Québec, subscribed for 9,090,909 Shares, which represents an investment of $10,000,000.

The Offering was underwritten by a syndicate led by National Bank Financial Inc., and including Paradigm Capital Inc., Cormark Securities Inc., TD Securities Inc., Dundee Securities Limited and Macquarie Capital Markets Canada Ltd. (together the "Underwriters").

As previously disclosed, the net proceeds of the Offering will be used by the Company to fund the continued development of the Lac Guéret graphite mine and Baie-Comeau, Québec concentrator plant projects (the "Project"), for the payment of amounts owing to Quinto Mining Corporation related to the Company's acquisition of the mining claims that comprise the Lac Guéret property, for an additional equity investment in Group NanoXplore Inc., and for general corporate purposes.

"We are pleased by the strong ongoing support we've received from investors, including Ressources Québec, during the Offering" says Benoît Gascon, Mason Graphite's President & Chief Executive Officer. "These investments constitute a further endorsement of the quality and viability of the Project. This Offering represents an important milestone for the Company, and will enable us to continue working towards the successful realization of the Project, which is progressing according to the previously disclosed plan."

All securities issued at the closing of the Offering will be subject to a four month hold period under applicable Canadian securities legislation and the policies of the TSX Venture Exchange, which expires on January 28, 2017.

In connection with the Offering, the Underwriters received a cash commission equal to 5.0% of the gross proceeds raised under the Offering (inclusive of the Underwriters' Option).

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons (as defined in Regulation S under the 1933 Act) absent such registration or an applicable exemption from such registration requirements.

About Mason Graphite and the Lac Guéret Project

Mason Graphite is a Canadian mining and processing company focused on the development of its 100% owned Lac Guéret natural graphite deposit located in northeastern Québec. The Company is led by a highly experienced team that has over five decades of experience in graphite production, sales, and research and development.

Mason Graphite Inc. On behalf of the Board

"Benoît Gascon, CPA, CA", President & Chief Executive Officer

Cautionary Statements

This press release contains "forward-looking information" within the meaning of Canadian securities legislation. All information contained herein that is not clearly historical in nature may constitute forward-looking information, including the use of proceeds of the Offering. Generally, such forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: (i) volatile stock price; (ii) the general global markets and economic conditions; (iii) the possibility of write-downs and impairments; (iv) the risk associated with exploration, development and operations of mineral deposits; (v) the risk associated with establishing title to mineral properties and assets; (vi) the risks associated with entering into joint ventures; (vii) fluctuations in commodity prices; (viii) the risks associated with uninsurable risks arising during the course of exploration, development and production; (ix) competition faced by the issuer in securing experienced personnel and financing; (x) access to adequate infrastructure to support mining, processing, development and exploration activities; (xi) the risks associated with changes in the mining regulatory regime governing the issuer; (xii) the risks associated with the various environmental regulations the issuer is subject to; (xiii) risks related to regulatory and permitting delays; (xiv) risks related to potential conflicts of interest; (xv) the reliance on key personnel; (xvi) liquidity risks; (xvii) the risk of potential dilution through the issue of common shares; (xviii) the Company does not anticipate declaring dividends in the near term; (xix) the risk of litigation; and (xx) risk management.

Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made, including but not limited to, continued exploration activities, no material adverse change in metal prices, exploration and development plans proceeding in accordance with plans and such plans achieving their stated expected outcomes, receipt of required regulatory approvals, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Such forward-looking information has been provided for the purpose of assisting investors in understanding the Company's business, operations and exploration plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is made as of the date of this press release, and the Company does not undertake to update such forward-looking information except in accordance with applicable securities laws.

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.

Contact Information

  • Simon Marcotte, CFA
    Vice-President Corporate Development
    +1 (647) 801-7273
    info@masongraphite.com

    For more information relating to local communities:
    Luc Veilleux, CPA, CA
    Executive Vice-President and Chief Financial Officer
    +1 (514) 289-3582
    info@masongraphite.com

    Head Office:
    3030, boulevard Le Carrefour, bureau 600
    Laval, Quebec
    H7T 2P5