In the last few years, the influx of companies rushing to gain a foothold in the graphite sector has made it increasingly important to be aware of which companies are serious and which are just along for the ride.
Big North Graphite (TSXV:NRT) has been working hard to establish itself as a member of the former category, and after announcing today the completion of its first graphite sale, the company looks to have done so.
In its press release, the company describes the graphite sold as 200 tons of mine-run, semi-processed amorphous graphite “consisting of a 3/4 inch minus size with an average grade of 68% Cg.” It was mined from Big North’s Nuevo San Pedro mine, located in Sonora, Mexico, as well as additional feed mines in the area, and was sold to a customer in the same country.
Amorphous graphite is mainly used in steel production, but is also used for other industrial processes, including railroads and manufacturing, according to Big North. Last year, it accounted for 55 percent of graphite production worldwide.
Spiros Kletas, president of Big North, commented positively on the news, stating, “[o]ur goal has always been to become one of the first junior graphite companies to capture some of the market by making graphite sales and earning revenue for our shareholders. Today is a monumental day for Big North Graphite and our shareholders. We were able to sell 100% of the graphite in our inventory as soon as it was available for purchase.”
The sale follows the mining and stockpiling of the first 160 tons of amorphous graphite from Nuevo San Pedro back in July. Big North also recently closed a $630,000 private placement, the proceeds of which it plans to use for advancing its mineral properties and for general working capital purposes.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Big North Graphite is a client of the Investing News Network. This article is not paid-for content.