Mason Graphite’s (TSX.V:LLG) $15.6 Million Financing Speeds Path To Production

While most graphite companies languish unloved on the proverbial vine, a select few are unaffected by the broad malaise that has engulfed the sector. Mason Graphite (TSX.V:LLG) (OTCMKTS:MGPHF)is just one such issuer. The company announced concurrent financings with four of Québec’s most important resource funds in the total aggregate of $15.6 million in April, which is more than enough to get the company through feasibility and reach a production decision.

Currently almost all of the world’s synthetic graphite occurs as a by-product of Silicon Carbide manufacture using the Acheson process – an energy and labour intensive process. The only place where synthetic graphite is made as a primary product is at Timcal in Switzerland, and Mason CEO Benoit Gascon used to run that plant. He thinks that plant is too small in terms of output to satisfy Tesla’s requirements, never mind the logistics of shipping from Switzerland.And that’s why Mason Graphite has the poll position when it comes to potentially supplying Tesla’s graphite needs. If Tesla can substitute expensive synthetic graphite with a reliable source of natural graphite, it could reduce the cost of the batteries, which translates into cheaper Tesla cars, which translates into faster market penetration, and faster ROI for investors in Tesla and its Gigafactory.

While it is true that Mason Graphite is not going to be the only new North American graphite supply this decade, it is the only company with a management team deeply versed in the ins and outs of process technologies to purify, shape and consistently output graphite products that adhere to detailed specification consistently.

In the world of graphite for lithium ion batteries, the two most important aspects are particle size distribution with predominantly large flakes, and a process engineering team that can economically deliver a uniform product to end users over time. In that regard, Mason wins handsdown.

See more at: http://www.iabrasive.com/products.