VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 15, 2012) - Galaxy Capital Corp. (TSX VENTURE:GXY) (the "Company" or "Galaxy") is pleased to announce that it has signed an agreement to acquire a 100-per-cent interest in the Buckingham Graphite Property, Quebec.
Buckingham Graphite Property
The Buckingham Graphite property comprises two former producing mines, located just east of Buckingham, QC. They are located in the highly prospective Central Metasedimentary Belt of the Grenville geological province, host to many active graphite projects. The host rocks for both deposits are graphitic crystalline marbles, similar to the host stratigraphy at Timcal's Lac des Iles graphite mine, currently Canada's only producing graphite mine. The two properties cover a total of 1,324 Ha on 22 mining claims.
The Ste-Marie deposit had small scale production in 1865, with a total reported production of 50 tons of graphite. The mineralization is hosted in lenticular masses and mineralized veins, within a crystalline limestone marble. The mineralization results from carbonitization of organic matter in calcareous sedimentary formations during the Grenvillian metamorphic event. The graphite mineralization is typically massive.
The Dominion mine produced a reported 916 tons of graphite, between 1910 and 1919. The geological setting is very similar to the Ste-Marie deposit. Flake graphite is reported to be the common form of graphite in the deposit.
The Company cautions that it has not verified the quality and accuracy of the historic data reported in this news release, which predate the introduction of National Instrument 43-101 and cautions readers not to rely upon them. The historic information was generated from property data on the website of the Quebec Ministère des Resources Naturelle et de la Faune. This source believed to be reliable; however, it has not been confirmed by the company's Qualified Person.
Chris Healey, President of Galaxy commented, "This acquisition, along with the Sun Graphite property acquisition previously announced, will move Galaxy to a position of leadership in the emerging electrical metals field."
Graphite Market
Global consumption of natural graphite has increased from ~600,000 in 2000 to 1.2 MM t in 2012. Demand for graphite has been increasing by approximately 5% per year since 2000 due to the ongoing modernization of China, India and other emerging economies, resulting in strong demand from traditional end uses such as the steel and automotive industries. Graphite also has many important new applications such as lithium ion batteries, fuel cells and nuclear and solar power that have the potential to create significant incremental demand growth. There is roughly 20 times more graphite required by weight to produce a lithium-ion battery than there is lithium. Demand for graphite is expected to rise as electric vehicles and lithium battery technology are adopted as well as increasing uses in new technology applications.
Natural graphite comes in several forms: flake, amorphous and lump. Of the 1.2 million tonnes of graphite produced annually, approximately 40% is of the most desirable flake type. China, which produces about 73% of the world's graphite, is seeing production and export growth leveling and export taxes and a licensing system have been instituted. A recent European Commission study regarding the criticality of 41 different materials to the European economy included graphite among the 14 materials high in both economic importance and supply risk (Critical Raw Materials for the EU, July 2010). Graphite prices have been increasing in recent months and over the last couple of years prices for large flake, high purity graphite (+80 mesh, 94-97%C) have more than doubled.
Terms
Galaxy has an option to earn a 100-per-cent interest in the Buckingham Graphite Property, Quebec from 9187-1400 Quebec Inc. by making the following payments and issuing the following common shares to the vendors: i) $15,000 upon signing the letter agreement (paid), ii) $15,000 and 300,000 common shares on receipt of the TSX Venture Exchange ("TSX-V") acceptance of the agreement, iii) and 300,000 common shares six months from TSX-V acceptance.
The vendor will retain a 2-per-cent net milling royalty on the property, 1% of which can be purchased by Galaxy for C$1,000,000.
Chris M. Healey P.Geo, a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical content of this release.
CHRIS M. HEALEY
ON BEHALF OF THE BOARD
Chris M. Healey, President and CEO
We seek safe harbor.
Neither 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 release.
Contact Information:
Chris M. Healey
President and CEO
(604) 921-1810
(604) 921-1898 (FAX)