Gratomic Provides Further Update on Its Acquisition of The Remaining 37% Interest in Aukam Property

Rhea-AI Summary

Gratomic Inc. has updated its progress on acquiring the remaining 37% interest in Gazania 242 Pty Ltd., the owner of the Aukam property in Namibia. Following the previous announcements, the acquisition is expected to close once all pre-conditions are met, likely within weeks. Post-acquisition, Gratomic will own 100% of the Aukam Mining License and exploration license. The company aims to produce eco-friendly, high-purity graphite for the EV and Energy Storage sectors, with operations anticipated to commence in 2021. Two off-take agreements are in place, expected to start in Q1 2021.

Positive

• Acquisition of full rights in Aukam property enhances Gratomic's operational control and market presence.
• Two off-take agreements with TODAQ and Phu Sumika secured, indicating strong demand and potential revenue stream.
• Focus on eco-friendly graphite production aligns with growing demand in EV and Energy Storage sectors.

Negative

• The acquisition is subject to customary conditions, which may delay the closing of the transaction.
• No detailed timeline provided for the completion of micronization and spheronization processes.

TORONTO, ON / ACCESSWIRE / March 19, 2021 / Gratomic Inc. ("GRAT" or the "Company") (TSX.V:GRAT) (OTCQB:CBULF) (FRANKFURT:CB82) (WKN:A143MR) is pleased to provide an update to its press releases of November 19, 2020 and February 17, 2021, in which it disclosed that it had entered into a definitive agreement, as amended, (the "Agreement") with Next Graphite, Inc. ("NextG"), for the acquisition of NextG's 37% interest in Gazania 242 Pty Ltd. (the "Acquisition"), the Namibian company which holds the licenses on the Aukam property. The Acquisition remains ongoing and will close once all of the pre-conditions to closing have been satisfied. It is anticipated that these preconditions will be satisfied within the next several weeks and the transaction will close immediately thereafter. Upon completion of the Acquisition, Gratomic will hold 100% of the rights and interests in the Aukam Mining License (ML215) and exploration License (EPL 3895).

The Acquisition is subject to the fulfillment of certain conditions precedent as are customary for transactions of this size including the approval of the TSXV.

About Gratomic Inc.

Established in 2014, Gratomic is focused on the proposed production of low-cost mine to market carbon-neutral, eco-friendly, high purity vein graphite to be provided to the EV and Energy Storage supply chains. Gratomic is anticipating full operational capabilities in 2021.

Gratomic is in the process of solidifying its plans for micronization and spheronization of its clean Aukam graphite. This significant milestone is a small, additional step in the Company's proposed eco-friendly processing cycle and is intended to allow it to meet ideal North American battery grade standards for use in Li-ion battery anodes.

The Company plans to deliver mine-to-market traceability and guaranteed quality control. This will be accomplished by providing documented tracking on all graphite generated at its flagship Aukam Graphite Project. The tracking will begin at Aukam and will be verified at every stage during transport.

Two off-take purchase agreements are currently held for lump-vein graphite sourced from Gratomic's Aukam Graphite Project in Namibia, Africa. Fulfillment of the contracts is anticipated to begin in Q1 of 2021. The agreements exist with TODAQ and Phu Sumika.

TODAQ is an innovative deeptech company that can containerize assets, transactions & markets, and will partner with Gratomic on its mine-to-market commodity tracking and trading. Containerized assets are verifiably unique, keep an immutable record of who has owned them, have embedded smart logic, can be transferred P2P, and are interoperable with any system. Asset owners enjoy stronger ownership control, value retention when trading, and ability to prove authenticity in seconds.

Phu Sumika is a large global graphite supplier to battery and lubrication companies.

Gratomic Inc. is listed on the TSX Venture Exchange under the symbol GRAT, on the OTCQB under the symbol CBULF and on the Frankfurt Exchange under the symbol CB82.

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.

"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.sedar.com

SOURCE: Gratomic Inc.

View source version on accesswire.com:
https://www.accesswire.com/636444/Gratomic-Provides-Further-Update-on-Its-Acquisition-of-The-Remaining-37-Interest-in-Aukam-Property

FAQ

What is Gratomic's acquisition of Next Graphite about?

Gratomic is acquiring a 37% interest in Gazania 242 Pty Ltd, which owns the Aukam property in Namibia, aiming for 100% ownership.

When will the acquisition of the Aukam property close?

The acquisition is expected to close within several weeks once all pre-conditions are satisfied.

What impact will the Aukam property acquisition have on Gratomic?

The acquisition will provide Gratomic full operational control over the Aukam property, enhancing its market position in graphite production.

What are the expected outcomes of the off-take agreements for Gratomic?

Gratomic anticipates fulfilling its off-take agreements with TODAQ and Phu Sumika starting in Q1 2021, which will likely generate revenue.

How does Gratomic plan to ensure the quality of its graphite products?

Gratomic plans to implement mine-to-market traceability and quality control for its graphite, with tracking from production to delivery.