Hydro Quebec
Focus and Hydro-Quebec's IREQ Sign Graphite Purification Technology Agreement and Anode Production Agreement for Li-Ion Batteries
On May 7, 2012, the Company and Hydro-Québec's world-leading IREQ (Institut de recherche en électricité du Québec) research institute, announced the signing of a licensing agreement enabling Focus to develop a graphite purification facility and a graphite anode production facility for lithium- ion (Li-ion) batteries.
So far Focus must develop the purification plant and anode facility. i assume that it uses HQ methods but the cost is 100% FMS.
The licensing agreement is in two parts. The first part is related to Focus' development of a graphite purification process that brings Lac Knife's processed graphite to 99.95% carbon for use in lithium battery applications. The processing includes spherical shaping as well as thermal and chemical purification.
Once again all FMS still.
The second part of the agreement provides for the production of anodes for Li-ion batteries. IREQ will provide technical support and collaboration in future material and processing technology improvements.
HQ steps up to the plate to provide technical support.
The new purification and production facilities will be built in Québec and will be owned and managed by Focus. The facility will be designed, subject to positive economic analysis, to produce 15,000 tons of spherical battery-grade flake graphite at peak, whereas the anode production facility will be designed to produce up to 5,000 tons of anodes. The exact cost to build and operate the facilities and the financing required has yet to be determined.
Okay all FMS money to build but heck they own it 100% so that is okay.
In exchange for the technology licence, technological support and future processing improvements, IREQ will receive a licensing fee that will be paid in cash over a three-year period as well as a royalty fee based on a percentage of future sales. The Company?s long-term liability totalling $575,000 as at September 30, 2012 is due to Hydro Quebec in relation to these agreements.
Okay seems to me that I read somewhere that the fee was $2 million bucks and the on going royalty payable to HQ appears to be a mystery or Gary does not want to disclose same. That royalty used to be %5 of all sales I understand it now totals 7% of all sales. Why no disclosure? seems to me to be material. Maybe I will shoot this section of to the OSC and ask them to delve into it.