Under the terms of the MOU, Irondequoit will have the exclusive right for a period of three years (subject to extension) to conclude binding offtake agreements with certain entities engaged in the aerospace, high performance lithium battery energy storage, and other high margin verticals. Additionally, Irondequoit will assist the Company with its efforts to raise the capital necessary to build a primary processing operation for graphite on the site of its Miller deposit. Finally, the MOU contemplates the formation of a joint venture arrangement with the following primary objectives:
- Commitment of a minimum of 25% of the Subject Graphite from Miller;
- Development of a value-added processing operation in the United States (likely in New York State);
- An economic construct whereby the Company and Irondequoit will share net profits from the joint venture on a 50/50 basis.
Ellerton Castor, Chief Executive Officer of the Company comments: “Canada Carbon is very excited to work with Irondequoit on what is a major step toward the commercialization of the Company’s Miller Graphite Deposit. This MOU lays the groundwork for a pathway which could expedite achievement of the Company’s longstanding objectives in the safe, responsible, and profitable development of the Miller deposit. Irondequoit is an excellent partner, who brings a very complimentary set of capabilities to the contemplated venture. We really look forward to working together in the coming months.”
Stefan Hawrylak, spokesperson for Irondequoit comments: “Irondequoit is pleased to work with Canada Carbon to solidify sustainable long-term government as well as defence and aerospace industry customers as part of the commercialization of Canada Carbon’s Miller Graphite Deposit.
Developing this secure Canadian deposit of ultra-high-purity nuclear graphite, having achieved 99.9998% Ct purity utilizing commercially available nuclear graphite thermal upgrading, is integral to the long-term national security of Canada and the United States. Irondequoit will endeavor to work with the various defense and aerospace industry stakeholders to bring this critical source of natural graphite to market. We look forward to collaborating with Mr. Castor and the team at Canada Carbon.”