Alumina Partners provides C$5m facility to Canada Carbon

Toronto-based Canada Carbon, an acquirer and developer of mineral properties, has secured a drawdown equity financing facility of up to C$5 million.

Toronto-based Canada Carbon, an acquirer and developer of mineral properties, has secured a drawdown equity financing facility of up to C$5 million. The investor is US private equity firm Alumina Partners. The funds raised will be used to advance work in Canada Carbon’s graphite mines in Quebec.

PRESS RELEASE

MISSISSAUGA, Ontario, July 27, 2021 (GLOBE NEWSWIRE) — Canada Carbon Inc. (TSXV:CCB) (the “Company” or “Canada Carbon“) is pleased to announce that it has entered into a definitive agreement (the “Investment Agreement”) for a drawdown equity financing facility (the “Facility”) of up to CDN$5 million with Alumina Partners (Ontario) Ltd. (“Alumina”), an affiliate of New York-based private equity firm Alumina Partners, LLC.
The Company intends to use funds from Alumina to advance the Miller Project, including the completion of the feasibility study, and to determine the potential of the recently acquired graphite claims in and around the former Asbury graphite mine.

“We are excited that Alumina recognizes the potential of Canada Carbon and is prepared to provide capital to ensure that the management of the Company can deliver on that potential. This strong financial backing provides us with the flexibility and security we need to execute on our business plan,” said Olga Nikitovic, Interim CEO.

“We’re pleased to support Canada Carbon as they prepare to embark upon a new chapter of exploration in Quebec,” said Adi Nahmani, Alumina’s Managing Member. “As the range of applications for reference-grade graphite continues to expand, demand is expected to grow substantially. Electric vehicles and renewable energy solutions are both driving innovative new battery technologies, and graphite is critical to those applications. We are confident in management’s roadmap to progress Canada Carbon’s business plan, and look forward to seeing it realized.”

The Investment Agreement provides the Company with a financing facility over a period of 24 months during which time the Company can draw down, subject to certain conditions, through private placement tranches of up to $500,000. Each tranche shall be a private placement of units, to be comprised of one common share and one common share purchase warrant. The units will be issued at a discount of 15% to 25% from the closing market price at the time of each tranche, and the exercise price of the warrants will be at a 25% premium over the closing market price at the time of issuance. There are no finder’s fees or standby charges associated with these investments. Each tranche of units issued will be subject to the acceptance of the TSX Venture Exchange, and the securities issued will be subject to the customary 4-month and one day hold period.