Lomiko Completes 100% La Loutre Purchase and Sets Targets on Spherical Graphite for Anodes Production Strategy

Rhea-AI Summary

Lomiko Metals has successfully completed the acquisition of the La Loutre Flake Graphite project for $1,125,000 from Quebec Precious Minerals Corporation. CEO A. Paul Gill emphasizes the opportunities in the burgeoning electric vehicle sector and the anticipated demand for graphite. The company is also looking to evaluate Preliminary Economic Assessment (PEA) proposals, aiming to identify profitable strategies for product development, as demand for spherical graphite is expected to skyrocket by 500% by 2040.

Positive

• Successful acquisition of La Loutre Flake Graphite project for $1,125,000.
• Potential to capitalize on the electric vehicle market with a focus on graphite supply.
• Expected 500% increase in spherical graphite demand by 2040, driven by Li-ion battery production.

Negative

• None.

Lomiko Metals Inc. (TSX-V: LMR, OTC: LMRMF, FSE: DH8C) (Lomiko or the “Company”) is pleased to announce it has completed its 100% acquisition of the La Loutre Flake Graphite project with a $ 1,125,000 payment to the vendor Quebec Precious Minerals Corporation. Transfer of the property rights have commenced and will be completed as soon as possible.

50+ and 80+mesh La Loutre Flake Graphite samples (Photo: Business Wire)

A. Paul Gill, CEO states, “We are at the beginning of an Electric Vehicle (EV) Revolution that will launch a battery materials bull market. More than 100 Lithium-ion mega-factories will produce Li-ion batteries worldwide. Lomiko sees an opportunity to supply graphite under a Canada-US agreement on Critical Minerals.”

Lomiko looks forward to assessing Preliminary Economic Assessment (PEA) proposals to advance the project. The development of a strategy that identifies value-added products is necessary to establish a long-term, profitable business model prior to extensive capital outlay and is crucial to the success of the company.

Graphite Sector Analysis

The price for 95% C (purity), 15 micron Spherical Graphite is $2,700-2,800 USD/tonne, far above the price of other forms of graphite. A Preliminary Economic Assessment (PEA) will include costs and the potential market for this key product. The World Bank has identified spherical graphite demand will increase by 500% by 2040 due to Li-ion batteries mega-factories which will be built to supply EVs.

Graphite electrodes are another long-term market for natural flake graphite. Graphite conductors which release electric energy in the form of an electric arc, are used to heat and melt the steel scraps in an electric arc furnace. They are currently the only products with high electrical conductivity and can maintain extremely high heat generation in this demanding environment. With the growing demand for quality steel in the aerospace, automotive and electronics industries, graphite electrodes are also becoming increasingly popular.

For more information on Lomiko Metals, review the website at www.lomiko.com, contact A. Paul Gill at 604-729-5312 or email: info@lomiko.com.

On Behalf of the Board,

“A. Paul Gill”
Chief Executive Officer

We seek safe harbor. 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

View source version on businesswire.com: https://www.businesswire.com/news/home/20210201005302/en/

FAQ

What is the recent acquisition by Lomiko Metals (LMR, LMRMF)?

Lomiko Metals has acquired the La Loutre Flake Graphite project for $1,125,000.

What does the CEO of Lomiko Metals say about the graphite market?

CEO A. Paul Gill highlights the opportunity in the electric vehicle sector and anticipates significant demand for graphite.

What is the expected increase in spherical graphite demand by 2040?

The demand for spherical graphite is expected to increase by 500% by 2040 due to the growth of Li-ion battery mega-factories.

How much did Lomiko Metals pay for the La Loutre Flake Graphite project?

Lomiko Metals paid $1,125,000 to acquire the La Loutre Flake Graphite project.

What is Lomiko Metals' strategy for developing the La Loutre project?

Lomiko Metals is seeking to evaluate Preliminary Economic Assessment (PEA) proposals to develop a profitable business model.