Dec 6 2012
USA GRAPHITE INC. or ("the Company") is pleased to announce it has signed a letter of intent to acquire the Gordon Creek Graphite Property.
The financial terms of the transaction consists of $1,200,000 in cash and stock and a $500,000 work program commitment. A production Net Smelter Royalty (the "NSR") will be retained by the vendor equal to two percent (2%) of the net smelter returns, as per the terms and conditions of the Option Agreement. The Company shall have a one-time right to purchase fifty percent (50%) of the NSR in the Property for five hundred thousand dollars ($500,000).
The project is located approximately 22 miles south of the town of Wells, Nevada. It's accessible via the Great Basin Highway (Highway 93) which intersects Interstate 80. Excellent access to infrastructure such as paved highways, electricity and clean water, are readily available. The Gordon Creek Graphite Property covers over 200 acres and lies within the Eastern Humbolt Range, a Cordilleran metamorphic core complex. This area of high-grade metamorphism has both graphitic marble and graphitic gneiss.
The geological unit encompasses rusty-weathering graphitic paragneiss interlayered with graphitic marble common at the stratigraphic base of the unit. The upper half of the unit is mostly marble, locally graphitic or containing metachert, minor schist.
Mr. Wayne Y. Yamamoto, President and CEO of USA Graphite, said, "We hope to complete the transaction in short order and execute on a broad exploration campaign to quantify the extent of graphite in this region."
Graphite is used in refractories -- used to line high-temperature equipment; pencils; lithium-ion batteries -- used in consumer electronics and electric vehicles, including the Nissan Leaf, Tesla Model S and others; fuel cells; and Pebble Bed nuclear reactors. It is used in foundries, lubricants and brake linings.
Graphite is also used to produce graphene, a tightly packed single layer of carbon atoms that can be used to make inexpensive solar panels, powerful transistors, and even a wafer-thin tablet that could be the next-generation iPad* or iPod*.
Graphene, extremely light and strong, has been called the world's next wonder material.
The closure of graphite mines in China, which produces 75% of the world's graphite, has resulted in a fall in global graphite production to 1.3 million tonnes per annum in 2011. Like rare earths, China is restricting the export of graphite to protect its own domestic industries. The second largest producer is India, followed by Brazil, North Korea, Austria and Canada.
*trademarks of Apple Inc.