Graphite One Inc. (TSX-V:GPH) (OTCQB:GPHOF) announced today it has completed the second tranche of a non-brokered private placement offering, raising gross proceeds from both tranches of the financing to CA$2 million, and also the awarding of options.

CLOSES SECOND TRANCHE OF PRIVATE PLACEMENT

The Company has completed the second and final tranche of the private placement previously announced on April 1, 2019 and April 22, 2019, raising gross proceeds from both tranches of the financing to CA$2 million.  The net proceeds of the Offering will be used for exploration and development of the Company’s Graphite Creek Project and for general working capital purposes.

The Company has issued 435,033 Units (the “Units”) in this second tranche, at a price of CA$0.30 per Unit for a total of CA$130,510.  Each Unit consists of one common share and one transferable common share purchase warrant.  Each Warrant entitles the holder to purchase one full Common Share at a purchase price of CA$0.30 per Common Share and will expire one year from the date of issuance.  A total of 5,336 Broker warrants and $1,600 was paid in finder’s fees.

The net proceeds of the Offering will be used for exploration and development of the Company’s Graphite Creek Project and for general working capital purposes.

The Offering is subject to receipt of final applicable regulatory approvals including approval of the TSX Venture Exchange.  All securities issued in connection with the Offering will be subject to a restricted period that expires four months and a day following the date of issuance.

GRANT OF OPTIONS

The Company also announces that the board of directors of the Company has approved an incentive stock option grant to directors, officers and consultants of the Company for the purchase of 1,800,000 shares of Graphite One in accordance with the Company’s shareholder approved stock option plan.  The options are exercisable at a price of $0.30 per share, all vesting immediately and expiring on May 15, 2024.

Upon the granting of the options described above, Graphite One will have 4,015,000 options outstanding, which represents approximately 9.9% of the 40,609,143 common shares of the Company currently outstanding.  Graphite One’s stock option plan limits the issuance of options to no more than 10% of the outstanding common shares.

ABOUT GRAPHITE ONE

GRAPHITE ONE INC. continues to develop its Graphite Creek Project, whereby the Company could potentially become an American producer of high grade Coated Spherical Graphite that is integrated with a domestic graphite resource.  The Project is proposed as a vertically integrated enterprise to mine, process and manufacture high grade CSG primarily for the lithium-ion electric vehicle battery market.  As set forth in the Company’s Preliminary Economic Assessment, potential graphite mineralization mined from the Company’s Graphite Creek Property is expected to be processed into concentrate at a graphite processing plant.  The proposed processing plant would be located on the Graphite Creek Property situated on the Seward Peninsula about 60 kilometers north of Nome, Alaska.  CSG and other value-added graphite products would likely be manufactured from the concentrate at the Company’s proposed graphite product manufacturing facility, the location of which is the subject of further study and analysis.  The Company intends to make a production decision on the Project once a feasibility study is completed.