SOURCE: USA Graphite Inc.
LAS VEGAS, NV--(Marketwire - Dec 7, 2012) - USA GRAPHITE INC. (OTCQB: USGT) is pleased to announce it has issued 2,000,000 shares of the Company's common stock in order to exercise the Company's initial option relating to the acquisition of the Gordon Creek Graphite Property. This property consists of 10 lode claims in Elko County, Nevada, covering an area of 206 acres. The area is a newly discovered graphite occurrence with flake graphite present and visible at surface.
Elko County is a well-known mining district with world-class companies such as Barrick Gold and Newmont Mining operating in the area. The Property lies within the Eastern Humbolt Range, a Cordilleran metamorphic core complex. This area of high-grade metamorphism has both graphitic marble and graphitic gneiss. Direct access to infrastructure, transportation and mining crews are also very beneficial to the Company.
The geological unit encompasses rusty-weathering graphitic paragneiss interlayered with graphitic marble common at the stratigraphic base of the unit. Further geological work will quantify the scale and size of the graphite resource.
The terms of the transaction are as follows:
The financial terms of the transaction consists of approximately $1,200,000 in cash and stock and $500,000 work program commitment. As well, to pay a production Net Smelter Royalty (the "NSR") to NV Minerals equal to two percent (2%) of the net smelter returns, per the terms and conditions of the Option Agreement. The Company shall have a one-time right to purchase fifty percent (50%) of the NSR in the Property for five hundred thousand dollars ($500,000). All shares issued under this transaction will be subject to an 18 month sales restriction period.
Mr. Wayne Y. Yamamoto, President and CEO of USA Graphite, said, "We are excited to add the Gordon Creek Property to our graphite portfolio. Encountering flake graphite at surface on the Gordon Creek Property further confirms our commitment to own high quality graphite projects in the USA."
- Graphite is used in refractories -- used to line high-temperature equipment; pencils; lithium-ion batteries -- used in consumer electronics and electric vehicles, including the Nissan Leaf, Tesla Model S and others; fuel cells; and Pebble Bed nuclear reactors. It is used in foundries, lubricants and brake linings.
- Graphite is also used to produce graphene, a tightly packed single layer of carbon atoms that can be used to make inexpensive solar panels, powerful transistors, and even a wafer-thin tablet that could be the next-generation iPad* or iPod*.
- Graphene, extremely light and strong, has been called the world's next wonder material.
- The closure of graphite mines in China, which produces 75% of the world's graphite, has resulted in a fall in global graphite production to 1.3 million tonnes per annum in 2011. Like rare earths, China is restricting the export of graphite to protect its own domestic industries. The second largest producer is India, followed by Brazil, North Korea, Austria and Canada.
*trademarks of Apple Inc.
About USA Graphite:
USA Graphite is a publicly traded US exploration company focused on the acquisition, exploration and development of world-class graphite properties in North America. USA Graphite intends to become a domestic (US) graphite supplier. The USGS has reported that the USA has been a 100% net importer of graphite over the last 5 years, sending billions of dollars out of America. USA Graphite has holdings in Nevada, offering considerable potential for the discovery and development of large flake, high-grade graphite, whereby mineralization is exposed at surface and clearly evident at economic depths. For additional information please visit http://www.usa-graphite.com
"Safe Harbor" Statement:
Under The Private Securities Litigation Reform Act of 1995: The statements in the press release that relate to the Company's expectations with regard to the future impact on the Company's results from new products in development are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Notice Regarding Forward-Looking Statements - This press release includes forward-looking statements that involve a number of risks and uncertainties, including the success of the programs it is commercializing and developing. Further, the risks involve the ability of the Company to raise capital to fund its operations and the capital requirements for the development and marketing of its products. Investors are encouraged to review the risk factors listed or described from time to time in the Company's filings (10K, 10Q's, S-1 and others) with the Securities and Exchange Commission.