Alabama Graphite Corp. Com ABGPF

Alabama Graphite Announces $2.5M Brokered Private Placement

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https://www.thenewswire.ca/archives?tnwcatalyst2=release_id%3D16695

Alabama Graphite Announces Brokered Private Placement

Vancouver, BC / TheNewswire / June 17, 2015 - Alabama Graphite Corp. (“Alabama Graphite” or the “Company”) (TSX‑V:ALP) (OTCQX:ABGPF) (FRANKFURT: 1AG WKN: A1J35M) (ISIN# CA0102931080) is pleased to announce that it has retained First Republic Capital Corporation (“First Republic”) to act as its agent in respect of a brokered private placement to raise up to CAD$2,500,000 (the “Private Placement”).

Under the Private Placement, First Republic will act as agent on a commercially reasonable efforts basis to sell up to 12,500,000 units (“Units”) of the Company at a price of CAD$0.20 per Unit to raise aggregate proceeds of up to CAD$2,500,000. Each Unit is comprised of: (i) one common share of the Company (a “Share”); and (ii) one-half of one common share purchase warrant of the Company, with each whole common share purchase warrant (a “Warrant”) entitling the holder to purchase one additional common share of the Company at an exercise price of CAD$0.35 for a period of 36 months from the date of issuance of the Units (the “Warrant Expiry Date”). In the event that the closing price of the Company’s common shares on the TSX Venture Exchange (or such other exchange on which the Company’s common shares may become traded) is CAD$0.75 or greater per common share during any 20 consecutive trading day period at any time subsequent to four months and one day after the closing date, the Warrants will expire, at the sole discretion of the Company, at 4:00 p.m. (Vancouver time) on the 30th day after the date on which the Company provides notice of such accelerated expiry to the holders of the Warrants.

First Republic has also been granted an option (the “Agent’s Option”) to sell up to such number of additional Units as is equal to 15% of the Units sold under the Private Placement, which Agent’s Option is exercisable at any time up to 48 hours prior to closing.

The net proceeds from the sale of the Units will be used towards a drilling program on the Company’s Coosa & Bama Graphite Projects in Alabama, USA, the preparation of an updated mineral resource estimate for the Coosa Project, metallurgical testing both at the Coosa and Bama Projects, value added graphite (including battery/storage applications) & graphene initiatives and for working capital.

The Company has agreed to pay First Republic cash compensation of: (i) a corporate finance fee equal to 2.5% of the gross proceeds of the Private Placement, and (ii) a sales commission equal to 5% of the gross proceeds of the Private Placement, and to issue Units to First Republic (“Broker Units”) in the following amounts: (i) corporate finance Broker Units equal to 2.5% of the aggregate number of Units sold in the Private Placement, and (ii) selling compensation Broker Units equal to 5% of the aggregate number of Units sold in the Private Placement.

All securities issued pursuant to the Private Placement will be subject to a four-month hold period from the date of closing of the Private Placement. The Private Placement is subject to the approval of the TSX Venture Exchange.

The securities offered pursuant to the Private Placement have not been, and will not be, registered under the United States Securities Act of 1933, as amended or any U.S. state securities laws and may not be offered or sold in the United States or to United States persons absent registration or any applicable exemption from the registration requirement of the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Alabama Graphite

Alabama Graphite Corp.’s mission is to become one of the greenest graphite producers in the world. The Company, through its wholly-owned subsidiary, Alabama Graphite Company Inc., is conducting exploration and development both at its flagship Coosa Graphite Project in Coosa County, Alabama, USA and the recently acquired Bama Mine Project in Chilton County, Alabama, USA. Alabama Graphite holds a 100% interest in the mining leases in respect of these two advanced-stage projects, both of which are on private land. The two projects encompass over 43,000 acres and are located in an area with significant historical production of crystalline flake graphite. The Company has the largest NI 43-101 indicated flake graphite resource in the United States based on drilling 0.18 square miles (0.3% of the total acreage). The Alabama deposits are unique in that a significant portion of the graphite-bearing material is oxidized and has been broken down into an extremely soft rock. Both projects have in place critical infrastructure, are within close proximity to transportation routes and enjoy a hospitable climate allowing for year-round production and delivery. For further information and updates on the Company, please visit www.alabamagraphite.com.

ALABAMA GRAPHITE CORP.

Ron S. Roda
President & Chief Executive Officer
[phone]
[e-mail]
www.alabamagraphite.com

FIRST REPUBLIC CAPITAL CORPORATION

Richard Goldstein
[phone]

OR

Anthony Durkacz
[phone]