Northern Graphite Secures Federal Support to Extend the Life of Lac des Iles Mine

Core Points - Northern Graphite Corporation has secured a repayable contribution of up to $6.225 million from the Canadian government to extend the life of its Lac des Îles graphite mine in Quebec [1][2][7] - The funding will cover 75% of the eligible costs for the pit extension, supporting continued production from North America's only operating graphite mine [2][9] - The mine produces approximately 15,000 tonnes of graphite concentrate annually, with a capacity of 25,000 tonnes per year, and is crucial for meeting rising demand in various sectors, including lithium-ion battery manufacturing [4][10][11] Company Strategy - The CEO of Northern Graphite emphasized the importance of Lac des Îles in the company's growth strategy and its goal to become a key supplier for defense and battery markets [3][11] - The company is in discussions with other parties to finance the remaining costs of the mine extension [3] - The pit extension is based on a resource estimate that indicates potential for extending the mine's life and increasing operational capacity [10] Government Support - The investment is part of Canada's strategy to establish itself as a sustainable supplier of critical minerals, which is essential for energy, digital technologies, and national defense [5][6] - The funding is expected to have positive economic impacts for Quebec workers and communities [5][6] Operational Plans - The funding will help avoid putting the Lac des Îles mine on care and maintenance at the end of 2025, allowing immediate work on the pit extension [9] - The first production from the new zones is anticipated within six to eight months, while the company will continue to supply customers from existing resources [9] - The repayment of the contribution will begin 36 months after project completion, with 84 equal monthly installments [9]