Saint Jean Carbon Enters into an Exclusive North American Agreement
to Market and Sell Synthetic Graphite
OAKVILLE, ONTARIO--(Marketwired - Jan 22, 2014) - Saint Jean
Carbon ("Saint Jean" or the "Company") (TSX-VENTURE:SJL) is pleased
to announce that it has entered into an Exclusive Distribution
Agreement with an arms-length party Miluo Xinxiang Carbon Products
Co. Ltd. ("Miluo") of Miluo, Hunan China to market, distribute and
sell a range of synthetic graphite products in the territory of
Canada, the United States and Mexico. The Miluo agreement
represents the first successful efforts of Minmet Carbons and Saint
Jean.
Miluo has been an established synthetic graphite producer since
2004 and manufactures products using proprietary and patented
graphitizing processes from a 215,000 square metre (2.3 million sq.
ft.) state-of-the-art facility. The Company employs 260 people and
produces a range of high purity synthetic products (ie. typically
95-99.9%C) for use in traditional industrial sectors such as steel
manufacturing, smelting and foundries. Its products are also used
in high tech sectors such as lithium-ion batteries, aerospace and
the nuclear energy industry. The Company maintains an extensive
research and development operation and markets to customers in
Asia, Europe, and the Americas.
Paul Ogilvie CEO, Saint Jean Carbon stated: "We are pleased with
the results of this new development. Our experience in the North
American steel and foundry sectors has provided us with numerous
requests for new and affordable supplies of synthetic graphite.
Miluo represents an ideal source for these products. It is
established, cost-effective, and actively seeking new customers and
markets. As a result we think this agreement will create multiple
synergies and opportunities to generate new revenues for both Saint
Jean and Miluo."
Miluo prepares a primary synthetic graphite product through the
graphitization of petroleum coke. This is combined with a coal-tar
pitch binder and heated to temperatures of 2,600 - 3,000°C which
transforms the mixture into crystalline graphite. In this process
the materials can be extruded into multiple shapes or moulds for
various industry applications. The synthetic graphite sector also
includes companies that manufacture secondary synthetic graphite
from materials recovered in the machining operations of graphite
"electrodes". These electrodes are typically manufactured for use
in steelmaking and provide significant scrap which is recycled into
synthetic. Secondary synthetic graphite has lower crystallinity and
lower purity than the primary synthetic product.
Miluo's graphite ranges in purity of 99.54%Cg to a low of
99.16%Cg. This is ideal for most of the synthetic graphite
applications. The Company believes the material quality will
compete well and is hopeful that customer sampling programs it
expects to start this month will bring in steady new orders with in
the first quarter of 2014.
Paul Ogilvie further commented: "As we continue to build our
revenue base for 2014 we believe synthetic graphite sales can make
up a measurable part of our financial goals. While natural and
synthetic graphite each have distinctive applications, there is
also considerable customer overlap that will permit us to leverage
our sales experience into both market segments. Accordingly, we are
looking forward to working closely with Miluo as we pursue new
customers that ultimately we will be selling both synthetic and
natural graphite to in the future."
The agreement has been established for an initial term of five
years with an option for two additional ten year periods. Under the
agreement Saint Jean will sell a minimum of 1,800 metric tonnes
during the first year, 5,000 tonnes the second year, and follow
through with 10% increases in tonnage for each of the remaining
years of the initial term.
About Miluo
Miluo Xinxiang Carbon Products Company Limited was established
in 1998. It is one of the branch companies of Zhen Xiang Carbon
Group. The total assets for Zhenxiang Carbon Group is more than
seventy million Yuan ($12 million CDN) and the registration capital
for Xinxiang Company is more than fifty million eight hundred
thousand Yuan ($9.2 million CDN). Miluo's factory is located in
Miluo city and has already passed ISO9001 in 2008 and received
credit grade AAA certification in 2006. Miluo has also received a
Certification of New Hi-tech Enterprises.
The Company's factory is licensed to do both import and export
business. They supply all kinds of graphite products including
carbon raisers, Graphitized petroleum coke, graphite electrodes,
graphite powders, graphite blocks, machined hollow heating rods,
gasifier components, heating element components, muffle tube, half
round boats, large crucibles and shaped graphite products. Their
core product is a high carbon, low sulphur and low nitrogen carbon
raiser (a product made from calcined petroleum coke). The purity of
fixed carbon is above 99.5%. The sulphur content can be under
0.02%. The content of Nitrogen is 100PPM max. Any sizes are
available from 0-30mm. The Company's supply capacity is more than
30,000 tons per year. At present they export to India, Israel,
Korea, South Africa, and North America. (http://www.hnxxts.com)
About Saint Jean Carbon
Saint Jean Carbon is a publicly traded junior mining exploration
company with a number of mining claims. The Walker graphite
property consists of 4 claims covering the past mine and 11 claims
covering interesting geological context for more graphite
mineralization in the region around the deposit, which is located
40 km north-east of Ottawa. The Saint Jovite graphite property is
located 8.5 km south-south-east of the village of Brebeuf in the
Laurentian region is approximately 153 km northwest of Montreal. It
consists of 4 claims. The Wallingford graphite property is located
10 km north of Buckingham village in the Central Metasedimentary
Belt of the Grenville geological Province, some 182 km west of
Montreal. It consists of two mining claims. The Mount Copeland
molybdenum deposit lies within metamorphic rocks flanking the
southern margin of Frenchman Cap Dome, 32 kilometers northwest of
Revelstoke, British Columbia (the "Mount Copeland Property"). The
Fort-Eden copper property is comprised of 18 mineral tenures that
total 2,828.6 hectares in area. The mineral claims are located 100
km west of Fort St. James, BC (the "Fort Eden Property").
The Red Bird deposit is comprised of three zones of molybdenum
concentration referred to as the Main, Southeast and Southwest
zones within a property totaling 1,836 ha (4,400 acres) and is
located 133 km southwest of Burns Lake and 105 km north of Bella
Coola (the "Red Bird Property"). The Company plans to divest (the
"Divestitures") each of the Mount Copeland Property, the Fort Eden
Property and the Red Bird Property through a sale or joint venture,
thus allowing it to focus on building a graphite mining company.
Additionally, Saint Jean Carbon expects to acquire the new lump
graphite property in Quebec (the "Clot Acquisition") and the
previously announced new lump graphite properties in Sri Lanka from
Han Tal Graphite (Pvt) Ltd. (the "Han Acquisition" and Clot
Acquisitions, the "Acquisitions") in furtherance of its new
focus.
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, within the meaning of
applicable securities legislation, concerning Saint Jean Carbon's
business and affairs. In certain cases, forward-looking statements
can be identified by the use of words such as "plans", "expects" or
"does not expect", "intends" "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" 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". Such forward-looking statements include those with
respect to the closing of and the intended use of proceeds from the
Offering, the Company's ability to complete Acquisitions, and
become a graphite producing company.
These forward-looking statements are based on current
expectations, and are naturally subject to uncertainty and changes
in circumstances that may cause actual results to differ
materially. The forward-looking statements in this news release
assume, inter alia, the Use of Proceeds.
Although Saint Jean believes that the expectations
represented in such forward-looking statements are reasonable,
there can be no assurance that these expectations will prove to be
correct. There are risks which could affect Saint Jean's ability to
complete the Offering, the proposed merger and the future results
of the merged company which could cause actual results to differ
materially from those expressed in these forward-looking statements
including negotiation failure or delay, the impact of general
global economic conditions and the risk that they will deteriorate,
industry conditions, including fluctuations in the price of
supplies and the risk that they will increase, that required
consents and approvals from regulatory authorities will not be
obtained, that activity in the lump or vein graphite business will
not be at the level or of the nature anticipated, liabilities and
risks inherent in Saint Jean's operations, technical problems,
equipment failure and construction delay.
Statements of past performance should not be construed as an
indication of future performance. Forward-looking statements
involve significant risks and uncertainties, should not be read as
guarantees of future performance or results, and will not
necessarily be accurate indications of whether or not such results
will be achieved. A number of factors, including those discussed
above, could cause actual results to differ materially from the
results discussed in the forward-looking statements. Any such
forward-looking statements are expressly qualified in their
entirety by this cautionary statement.
All of the forward-looking statements made in this press
release are qualified by these cautionary statements. Readers are
cautioned not to place undue reliance on such forward-looking
statements. Forward-looking information is provided as of the date
of this press release, and Saint Jean Carbon assumes no obligation
to update or revise them to reflect new events or circumstances,
except as may be required under applicable securities
laws.
Saint Jean CarbonLaurie McCarneyDirector of Corporate
Communications(905) 844-1200 ext:
305lmccarney@saintjeancarbon.comwww.saintjeancarbon.com
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