Graphite is no longer flavor of the month in the commodities world.
But that will not prevent Northern Graphite Corp. (TSX: V.NGC, Stock Forum) from releasing a flurry of news in the next few weeks as it looks ahead to development of its Bissett Creek project east of North Bay, Ontario.
Having already completed a bankability study, the company plans to release additional drill results and a new resource estimate within the next couple of weeks.
In addition, the company is hoping to quickly secure the permits it needs for construction of a $100 million graphite mine.
“We expect to have an offtake agreement and a strategic partner as part of the process,’’ said spokesman Greg Bowes.
Trading at $1.02 on Monday, down 2%, Northern Graphite has a market cap of $50 million, based on 49 million shares outstanding. The 52-week range is $3.42 and 58 cents.
Graphite is an industrial mineral that is normally associated with steel production, lead pencils and golf clubs. Export restrictions in China and speculation about new applications that may increase demand sparked a flurry of interest in graphite and graphite stocks last year.
But investor interest has since slowed just a bit, Bowes said.
Based in Ottawa, Northern Graphite is reputed to be one of the front runners on the graphite exploration scene. The company was invited to display some of its drill core at the Prospectors & Developers Association of Canada conference in Toronto this week.