Graphite One raising $18 million for Alaska mine
Graphite One Resources Inc. (TSXV: GPH, GPHOF-OTCQX) said it has struck a deal with a syndicate of agents in connection with a private placement of up to $18 million worth of units. Part of the proceeds are earmarked for environmental studies and other permitting related activities at the company’s Graphite Creek property, which is located 50 kilometres north of Nome, Alaska.
The units consist of one common share and one-half of one common share purchase warrant priced at 90 cents per unit. Each warrant will entitle the holder to acquire one common share for $1.25 per share for 12 months following closing, which is expected to occur on August 8, 2025.
Graphite One has granted the underwriting agents an option to purchase, or arrange for the purchase, of up to an additional 15% of the units at the issue price and otherwise on the same terms and conditions of the units. That option can be exercised, in whole or in part, at any time up to 48 hours prior to the closing date.
Graphite One shares were active on the news, easing 19.6% or 22 cents to 90 cents. The shares trade in a 52-week range of $1.14 and 64 cents.
Graphite One aims to become a vertically integrated American supplier, capable of mining graphite from its Graphite Creek Property. The Graphite One project plan includes an advanced graphite material and battery anode manufacturing plant located in Warren, Ohio. The plan also includes a recycling facility to be located in Ohio.
Envisioned as a vertically-integrated enterprise to mine, process and manufacture high-grade Coated Spherical Graphite (CSG). The Graphite One project would increase the North American supply of high purity CSG that meets or exceeds current requirements for electric vehicle battery anodes, and other critical applications at a time when demand for graphite is skyrocketing.
The Graphite Creek property, located on the Seward Peninsula in Western Alaska about 60 kilometres north of Nome, is estimated to hold America’s highest grade large flake graphite deposit, with proven and probable reserves of 71.2 million tonnes of 5.0% Cg.
The company released the results of a bankable feasibility study in April 2025. With support from the U.S. Department of Defense, the annual graphite concentrate capacity of the Graphite Creek mine in the feasibility study was increased from 53,000 tonnes per year in a 2022 pre-feasibility study to 175,000 tonnes per year, while maintaining a 20-year mine-life.
The study envisions the first 48,000 tonnes per year of commercial anode active material (AAM) production by 2028, startup of the Graphite Mine in 2030 and 169,000 tonnes. The phased development strategy aims to reduce upfront capital and aligns spending with project milestones.
The company envisages an owner-operated, year-long truck and shovel operation with four active mining areas.
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