May 16, 2024 – Lomiko Metals Inc. (TSX.V: LMR) (“Lomiko Metals” or the “Company”) is pleased to announce that it has been awarded a Department of Defense (“DoD”) Technology Investment Agreement (“TIA”) grant of US$8.35 million (approximately CA$11.4 million) where Lomiko will match the funding over a period of 5 years, for a total agreement with the DoD of US$16.7 million. The grant falls under Title III of the Defense Production Act and is funded through the Inflation Reduction Act to ensure energy security in North America. This grant funding is to strengthen and expand the industrial base for natural flake graphite in North America. This is one of the first agreements the Department of Defence (“DOD”) is granting in TIA funding to a Canadian management team and asset, at this stage of development. In addition, and concurrent to the grant awarded by the DoD, the Company has also been approved for funding of CA$4.9 million in a non-repayable contribution agreement from the Critical Mineral Research, Development and Demonstration (CMRDD) program administered by Natural Resources Canada with the total project cost being CA$6.6 million. The objective of the program is to pilot the proposed graphite upgrading process and convert La Loutre natural flake graphite into battery-grade anode material.
Belinda Labatte, CEO and Interim Chair of the board, stated: “To achieve these concurrent Canadian and American funding opportunities is a tremendous and exciting milestone moment for the Lomiko team and board, investors and partners. It is a win for Quebec, Canada, and the United States as we approach this next phase of studies with an exceptional opportunity with the DoD and the Canadian government to build a collaborative, inclusive approach to responsible energy transition and supply chain resilience in North America.”
“Today’s investment in Lomiko Metals, Inc. will help advance supply chain resilience and create job opportunities in Canada – all part of our work to build a prosperous and sustainable Canadian economy that benefits everyone. We will continue to work with allies and industry to ensure the development of secure resources for a prosperous net-zero future.” The Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources.
The TIA is designed specifically to support the science-based continued research and development of the La Loutre graphite project in accordance with the vision and values of Lomiko and in accordance with all Canadian and Quebec regulations and processes. The TIA agreement entered into with the DoD is to complete three distinct phases of research and development work with independent experts and consultants over a 5-year period, as follows:
Phase 1: Completion of a Pre-Feasibility Study (PFS) and baseline data collection
Phase 2: Completion of metallurgical studies and bulk sample
Phase 3: Completion of a Definitive Feasibility Study (DFS)
Both the U.S. grant and the Canadian contribution support science-based approaches for the responsible development of the La Loutre natural flake graphite in Quebec. The studies include integrating a decarbonized mine model and community-centered studies such as progressive reclamation. The Lomiko vision is to build a meaningful and inclusive critical minerals company of the future.
Belinda Labatte: “Our greatest resource in critical minerals projects will always be the people we work and engage with. We welcome those who ask questions, as those create the opportunities to explore and innovate together to find solutions for energy transition and supply chain resilience. Lomiko looks forward to the next steps and continuing its responsive approach in Quebec.”
Lomiko will continue to engage with First Nations and with local communities with a direct presence in the field and with other communication mechanisms to provide detailed and thorough information. Lomiko provides detailed and thorough information on the website and will continue to use its website as the primary source for accurate information and for media inquiries: www.lomiko.com.
Critical Minerals Research, Development and Demonstration Program
The CMRDD funding is in the form of a contribution agreement, in which Natural Resources Canada will contribute CA$4.9 million over a three-year period. Lomiko will collaborate with established Canadian research groups, The objective of this project is to pilot the proposed graphite upgrading process to confirm technologies and conditions that are required to convert flake graphite into battery-grade anode material, achieving high purity levels of graphitic carbon content and low impurity levels. The project will demonstrate Canada’s leadership in processing quality graphite, support the development of Canada’s and Quebec’s domestic battery supply chain, and support employment opportunities for skilled trades in Quebec.
Global market conditions
This funding demonstrates the importance of developing supply chain resilience for natural flake graphite in North America. The United States is 100% import-dependent on graphite, and graphite is among the key priority critical minerals in Canada, with key competitive advantages for graphite specifically in Quebec. In December 2023, China declared its intention to implement export permits for certain graphite products to safeguard national security. It is widely known that graphite supply will be in shortage starting now, to accommodate the tremendous growth of the Electric Vehicle (“EV”) market, with the shortfall to increase to 8Mt by 2040, according to Benchmark Mineral Intelligence’s flake graphite forecast report.
A Responsible developer operating within the Quebec and Canada Critical Minerals Strategy
Lomiko is a Quebec ECOLOGO-certified responsible graphite developer working within the Quebec Critical Minerals Strategy framework, which supports innovation and responsible development of projects such as Lomiko’s La Loutre natural flake graphite project.
The La Loutre Indicated Mineral Resources estimate holds 3.0 million tonnes of contained graphite at a grade of 4.59% as announced in the Company’s Mineral Resources Estimate technical report of May 29, 2023. This represents a 184% increase in Indicated Mineral Resources from the last resource estimate published by the Company in July 2021. The project is located within proximity to battery plant future production in Quebec and the United States.
The Quebec Critical Minerals strategy published by the Ministère de l’Énergie et des Ressources naturelles can be found here: https://cdn-contenu.quebec.ca/cdn-contenu/ressources-naturelles/Documents/PL_resume_critical_strategic_minerals.pdf. Lomiko is fully aligned with these goals and this funding directly promotes research and development to accomplish provincial mandates.
The Company will continue to actively engage in funding processes in Quebec and Canada and sees the U.S. grant and Canadian contribution as a significant catalyst for community-focused energy transition projects.
Qualified Persons
Ms. Gordana Slepcev a COO of Lomiko Metals Inc., is a Qualified Person within the meaning of NI 43-101. Ms. Slepcev has reviewed, approved, and verified the technical information disclosed in this news release.
About Lomiko Metals Inc.
The Company holds mineral interests in its La Loutre graphite development in southern Quebec. The La Loutre project site is within the Kitigan Zibi Anishinabeg (KZA) First Nation’s territory. The KZA First Nation is part of the Algonquin Nation, and the KZA traditional territory is situated within the Outaouais and Laurentides regions. Located 180 kilometers northwest of Montreal, the property consists of one large, continuous block with 76 mineral claims totaling 4,528 hectares (45.3 km2).
The Property is underlain by rocks from the Grenville Province of the Precambrian Canadian Shield. The Grenville was formed under conditions that were very favorable for the development of coarse-grained, flake-type graphite mineralization from organic-rich material during high-temperature metamorphism.
Lomiko Metals published April 13, 2023 Updated Mineral Resource Estimate (MRE) which estimated 64.7 million tonnes of Indicated Mineral Resources averaging 4.59% Cg per tonne for 3.0 million tonnes of graphite, a tonnage increase of 184%. Indicated Mineral Resources increased by 41.5 million tonnes as a result of the 2022 drilling campaign, from 17.5 million tonnes in 2021 MRE with additional Mineral resources reported down-dip and within marble units resulted in the addition of 17.5 million tonnes of Inferred Mineral Resources averaging 3.51% Cg per tonne for 0.65 million tonnes of contained graphite; and the additional 13,107 metres of infill drilling in 79 holes completed in 2022 combined with the refinement of the deposit and structural models contributed to the addition of most of the Inferred Mineral Resources to the Indicated Mineral Resource category, relative to the 2021 Mineral Resource Estimate. The MRE assumes a US$1,098.07 per tonne graphite price and a cut-off grade of 1.50%Cg (graphitic carbon).
In addition to La Loutre, Lomiko has earned-in its 49% stake in the Bourier Project from Critical Elements Lithium Corporation as per the option agreement announced on April 27th, 2021. The Bourier project site is located near Nemaska Lithium and Critical Elements south-east of the Eeyou Istchee James Bay territory in Quebec, which consists of 203 claims for a total ground position of 10,252.20 hectares (102.52 km2), in Canada’s lithium triangle near the James Bay region of Quebec that has historically housed lithium deposits and mineralization trends.
On behalf of the Board,
Belinda Labatte
CEO and Director, Lomiko Metals Inc.
For more information on Lomiko Metals, review the website at www.lomiko.com
Contact us at 1-833-4-LOMIKO or e-mail: info@lomiko.com.
Cautionary Note Regarding Forward-Looking Information
This news release contains “forward-looking information” within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates, projections and interpretations as at the date of this news release. The information in this news release about the Company; and any other information herein that is not a historical fact may be “forward-looking information” (“FLI”). All statements, other than statements of historical fact, are FLI and can be identified by the use of statements that include words such as “anticipates”, “plans”, “continues”, “estimates”, “expects”, “may”, “will”, “projects”, “predicts”, “proposes”, “potential”, “target”, “implement”, “scheduled”, “intends”, “could”, “might”, “should”, “believe” and similar words or expressions. FLI in this new release includes, but is not limited to: the total amount of funds available to the Company as a result of the TIA based on the requirement for the Company to match the funds allocated under the TIA, the Company’s objective to become a responsible supplier of critical minerals, exploration of the Company’s projects, including expected costs of exploration and timing to achieve certain milestones, including timing for completion of exploration programs; the Company’s ability to successfully fund, or remain fully funded for the implementation of its business strategy and for exploration of any of its projects (including from the capital markets); the Company’s financial position or operations, and the expected timing of announcements in this regard. FLI involves known and unknown risks, assumptions and other factors that may cause actual results or performance to differ materially.
The FLI in this news release reflects the Company’s current views about future events, and while considered reasonable by the Company at this time, are inherently subject to significant uncertainties and contingencies. Accordingly, there can be no certainty that they will accurately reflect actual results. Assumptions upon which such FLI is based include, without limitation: the Company’s ability to raise sufficient capital in order to match the funds required under the TIA, the current market for critical minerals, current technological trends, the business relationship between the Company and its business partners, ability to implement its overall business strategy and to fund, explore, advance and develop each of its projects, including results therefrom and timing thereof, the ability to operate in a safe and effective manner, uncertainties related to receiving and maintaining exploration, environmental and other permits or approvals in Quebec, the impact of increasing competition in the mineral exploration business, including the Company’s competitive position in the industry, and general economic conditions, including in relation to currency controls and interest rate fluctuations.
The FLI contained in this news release are expressly qualified in their entirety by this cautionary statement, the “Forward-Looking Statements” section contained in the Company’s most recent management’s discussion and analysis (MD&A), which is available on SEDAR+ at www.sedarplus.ca. All FLI in this news release are made as of the date of this news release. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on such forward-looking information. The Company does not undertake to update or revise any forward-looking information contained herein to reflect new events or circumstances, except as may be required by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
The post Lomiko Metals awarded US$8.35m grant from the United States of America Department of Defense (“DoD”) in a Technology Investment Agreement (“TIA”) and funding of CA$4.9m from Natural Resources Canada to support further studies at La Loutre natural flake graphite project in Quebec, Canada appeared first on Lomiko Metals.