Focus Metals and IREQ, the research institute of Hydro-Québec, sign a contract for graphite cleaning and anodes for Li-ion batteries
08.05.2012 MONTRÉAL / OTTAWA - Focus Metals Inc. (FTS: FMS; OTCQX: FCSMF; FSE: FKC) and IREQ, the world's leading research institute for Hydro-Québec, today announce the signing of a license agreement and Focus Metals the development of a graphite purification facility and a graphite anode production line for lithium-ion batteries (Li-ion batteries), known.
Focus's new facility will process the graphite from the high-grade Lac Knife (Québec) deposit from Focus Metals into raw materials of the quality required for battery manufacturing.
The license agreement consists of two parts. The first part relates to the development of a graphite cleaning process by Focus Metals, which will purify Lac Knife's recycled graphite for use in lithium accumulators (99,95% carbon). The process includes spherical forming as well as thermal and chemical cleaning. The second part of the contract provides for the production of anodes for Li-ion batteries.
IREQ will provide technical support and focus on future material and process improvements.
Gary Economo, President and CEO of Focus Metals, said the new cleaning and production facilities will be built in Quebec and operated and managed by Focus Metals. Subject to a favorable performance review, the new purification plant is expected to produce 2015 tonnes of spherical flake graphite for battery applications at peak times until 15.000, while the anode production facility will be designed for the production of up to 5.000 tonnes of anodes. The exact cost of the investments and the amount of funding needed have not yet been determined.
In return for the process license, technical support and future process improvements, IREQ will be paid a license fee less than 10% of current working capital paid in cash over a three-year period and a profit share equal to a percentage of future sales is obtained.
"This contract represents a major milestone for the company as we move from pre-development to production at our Lac Knife graphite deposit," said Economo. "In addition, by combining our world-class graphite deposit in Quebec with the world's leading developer of aquarium-based processing operations, Québec-based Focus Metals is in a prime position to become a high-quality supplier of fast-growing lithium batteries Secure sector. "
"This contract particularly supports our ambition to become the world's most cost-effective graphite producer in the technological area," Mr Economo added. "A technology contract with the world leader in the development and patenting of graphite anodes should be a good sign for our shareholders."
Mr Economo also said that the cleaning process would be included in the initial economic valuation for Lac Knife, due to be released in June 2012.
The Lac Knife deposit is 100% owned by Focus Metals and hosts a measured and indicated resource of 4,9 million tonnes at 16% Cgr and a derived resource of 3,0 million tonnes at 16% Cgr (see NI 43-101 compliant technical report for the mineral resource estimate submitted to SEDAR). Most of the resources are intended for use in technology applications.
IREQ is recognized worldwide as a leading technology provider for renewable energy solutions.
"We believe the high-grade graphite from the Lac Knife deposit, along with our graphite cleaning and forming processes, will provide a quality product for Li-ion battery applications," said Karim Zaghib, Director of Energy Storage and Conversion at IREQ.
About IREQ
IREQ, Hydro-Québec's research institute, is a world leader in the development of advanced source materials for battery manufacturing and designs innovative processes in its state-of-the-art facilities. IREQ has more than 100 patent rights and 15 licenses for battery / rechargeable battery materials used by some of the world's most successful battery manufacturers and material suppliers. IREQ's contributions support the development of safe high-performance lithium-ion batteries that can be recharged faster and more frequently. IREQ also acts as a project partner for private companies based in Québec to support its technology developments in the construction of charging stations for electric and hybrid electric vehicles. IREQ promotes open innovation and partnerships with private companies, universities, government agencies and research centers both in Quebec and abroad. These partnerships enable IREQ to develop, industrialize and market the technologies that emerge from its innovation projects.
About Hydro-Québec
Hydro-Québec is Canada's largest power producer and one of the world's leading hydropower producers. In addition, Hydro-Québec transmits and distributes electricity. The Québec government is the sole shareholder of Hydro-Québec, which mainly uses renewable energy generation alternatives, in particular hydropower, and supports the expansion of the use of wind energy through purchases from independent electricity producers. The research institute of Hydro-Québec, IREQ, is accelerating research and development into energy efficiency, energy storage and other energy related areas. Hydro-Québec invests 100 million C $ in research every year.
About Focus Metals Inc.
Focus Metals Inc. is an emerging, junior mid-sized mining company and a developer and provider of technology solutions and business innovation. The company has the world's highest grade graphite resources for the technological application area (approximately 16%). The company's goal is to become a market leader as the lowest cost producer of high quality graphite technology. As a technology-driven company committed to securing long-term value for its shareholders, Focus Metals is involved in the development of graphene applications and patents through Grafoid Inc.
Contact:
Gary Economo, President and CEO
Focus Metals Inc.
Ottawa
+1-613-691-1091, DW 101
ppgad@pucrs.br
www.focusmetals.ca
Louis-Olivier Batty, Media Relations
Hydro-Québec
+ 1-514 289-4214
ppgad@pucrs.br
No liability is assumed for the accuracy of the translation! Please note english original message!
The original English message can be found at:
http://www.irw-press.at/press_html.aspx?messageID=25030
Forward-looking statements
This press release may contain or refer to "forward-looking statements" that reflect management's expectations regarding the future growth of the business, operating results, performance and business prospects, and opportunities. These statements reflect management's current views as of the date of this news release and are based on information currently available to management. All statements in this press release that are not historical facts, including, but not limited to, statements regarding the potential of mineralization and deposits, exploration results, and future plans and objectives of the Company, are forward-looking statements that involve certain risks and uncertainties. There can be no assurance that such statements are accurate; actual results and future events may differ materially from such statements. Crucial factors that could cause actual results to differ materially from those expected by management are the exploration risks described herein and will be published by the Company from time to time. Because the Company believes that future events and developments could cause these views to change, it expressly states that it is not obliged to update these forward-looking statements, except as required by applicable securities laws. Therefore, readers should not rely on forward-looking information for their investments.
The TSX Venture Exchange and its regulators (referred to in the Articles of Association of the TSX Venture Exchange as Regulation Services Providers) accept no responsibility for the adequacy or accuracy of this announcement.
