Mason Graphite Inc. [LLG-TSXV; MGPHF-OTCQX] said Wednesday June 6 that it has received the main environmental permit for its Lac Gueret Project in northern Quebec.
Mason is a graphite mining and processing company focused on developing the Lac Gueret Project where the graphite grade is believed by management to be among the highest in the world.
The Montreal-based company said it has received the governmental authorization, via the issuance of Decree 608-2018 by the Quebec Government. Under the Quebec Environmental Quality Act, this government authorization is the main permit required prior to commencing construction activities for both the Lac Gueret and Baie-Comeau sites. It governs the other governmental permits required to proceed with the construction and operations of the project.
Mason Graphite shares advanced on the news, rising 1.76% or $0.03 to $1.76 in early afternoon trading on Wednesday. The 52-week range is $1.52 and $3.15.
Mason Graphite recently secured a portion of the construction financing by raising $45 million from a private placement offering of 18.75 million shares priced at $2.40 per share.
Proceeds of the private placement are destined to be used for development and construction expenses related to the Lac Gueret graphite mine and Baie Comeau concentrator plant project. Development and construction expenses represent a portion of the estimated $200 million capital spending budget.
According to an amended technical report, which was announced on March 1, 2016, Lac Gueret is host to proven and probable reserves of 4.7 million tonnes, grading 27.77% graphitic carbon.
That is in addition to a measured and indicated resource of 58.1 million tonnes, grading 16.30% graphitic carbon.
“The Certificate of Authorization is a milestone of the utmost importance for our project and I would like to sincerely thank everyone who has been involved in the process,” said Mason Graphite President and Chief Executive Officer Benoit Gascon.
“[Receipt] of the Certificate of Authorization is another telling sign of its social acceptance by the local communities and the Innus of Pessamit,” he said.
Right from the planning and design stage of the project, Mason Graphite has been constantly taking into account the concerns and expectations of the communities and stakeholders in order to maximize its social and economic benefits and minimize its environmental impact.
The Lac Gueret Project, being located within a territory designated as the Manicouagan-Uapishka Biosphere Reserve, this approach was highlighted by an exemplary mention made by the Canadian Commission for UNESCO external review committee and Mason Graphite’s contribution to sustainable development, the company said.