news releaseinteresting news release:
https://www.stockwatch.com/News/Item.aspx?bid=U-i1265889-U:ABGPF-20160623&symbol=ABGPF®ion=U
Alabama Graphite Corp. Announces Shipment of American Sourced and Manufactured CSPG Samples to United States Department of Defense (DoD) Lithium-ion Battery Solutions Provider
2016-06-23 13:20 ET - News Release
TORONTO, ONTARIO -- (Marketwired) -- 06/23/16
Alabama Graphite Corp. ("AGC" or the "Company") (TSX VENTURE:ALP)(OTCQX:ABGPF)(FRANKFURT:1AG) is very pleased to announce that it has manufactured and shipped two specifications of its coated spherical graphite ("CSPG") to a U.S.-based innovator in Lithium-ion ("Li-ion") batteries for numerous and varied military applications for the United States Department of Defense ("DoD"). AGC conveyed fine- and coarse-sized CSPG made from the Company's Coosa Graphite Project material - located in Coosa County, Alabama, USA - that will be tested in two different defense applications; namely, high-powered military engine starter batteries, and soldier portable power and other energy-dense applications. All requisite downstream secondary processing to manufacture our Coosa CSPG was conducted in the United States of America. For more information about AGC's secondary processing to produce its CSPG, please refer to the independent report, "Alabama Graphite's Coated Spherical Purified Graphite for the Lithium-ion Battery Industry," prepared by Gareth P. Hatch, PhD, CEng, FIMMM, FIET, and Founding Principal of Technology Metals Research, LLC.
After publication of AGC's announcement of January 19, 2016 ("Independent Test Results: Alabama Graphite Corp. Succeeds in Producing High-Performance Coated Spherical Graphite (CSPG) for Lithium-ion Batteries"), the unnamed battery manufacturer approached AGC to investigate the potential of a reliable supply of conveniently located, sourced-in and made-in-U.S.A. CSPG.
This battery company is known for its demonstrated expertise and ingenuity in Li-ion battery development for the DoD and several other industries. Having been awarded multiple DoD contracts in recent years, this company is also a United States Department of Energy ("DoE") battery supplier, in addition to specializing in critical stationary energy storage, renewable energy, and transportation battery markets, as well as other Li-ion battery applications and industries. The aforementioned company will remain unnamed for reasons of commercial confidentiality.
Donald K. D. Baxter, P.Eng., AGC's President, Chief Executive Officer, and Executive Director commented, "Our Company is honored and excited to have been presented with this opportunity to supply samples of our all-American CSPG to a respected battery manufacturer we sincerely hope will become AGC's long-term business partner."
The DoD, DoE and other U.S. Federal government departments and agencies encourage their contractors and suppliers to source their input materials from within the USA, whenever and wherever possible. Additionally, provisions of the Buy American Act (the "Act") and other legislation may afford AGC a potential competitive advantage when engaging with these entities. With certain exceptions, such legislation requires that all goods for public use - articles, materials, or supplies - must be produced in the USA, and manufactured items must be manufactured in the USA from U.S. materials. Many states and municipalities include similar geographic production requirements in their procurement legislation. Note, in certain government procurements, the Act's requirement purchase may be waived if the domestic product is 50% or more expensive than an identical foreign-sourced product, if the product is not available domestically in sufficient quantity or quality, or if doing so is in the public interest. However, it is important to be aware that any legislation may be subject to change over time. For example, potential changes to the North American Free Trade Agreement (NAFTA) or the Act itself, could level the playing field for non-U.S. government/DoD procurements, and the Company and its business plan and prospects are always at risk of adverse changes in any applicable legislation. Given the foregoing, if, following the completion of a Feasibility Study (which has not yet been commenced), AGC is able to advance the Coosa Graphite Project into production, the resulting graphite would be sourced from within the contiguous United States and the Company may have a potential competitive advantage over other producers of value-added graphite materials sourced from other countries, regardless of whether said materials were processed and/or manufactured in the U.S.
Note: AGC completed its Preliminary Economic Assessment ("PEA") for the Coosa Graphite Project on November 27, 2015. A PEA is not a Feasibility Study. The PEA is preliminary in nature, that it includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA based on these mineral resources will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
"AGC is particularly eager to address the needs of the United States government and defense sectors' battery solutions providers," Mr. Baxter added. "Pending a positive Feasibility Study, we are confident that AGC will be a viable domestic upstream supply option for these entities and look forward to working with this well-established end user to provide a high-quality product, ideally suited for their multi-faceted DoD needs."
AGC will continue to update shareholders and the market in a timely fashion of further material developments with respect to this and other potential American-based CSPG end users, as we are able to disclose. Please note, certain potential end users preclude the Company from announcing any aspect of its relationship and activities, ranging from the execution of a non-disclosure agreement ("NDA") to the shipment(s) of sample material.