MASON GRAPHITE INC COM NPV (OTCMKTS:MGPHF) Is In The Right Place At The Right Time

The use of graphite in batteries has been increasing over the last 30 years and has become a major component in rechargeable batteries, which are widely used today.Rechargeable lithium-ion batteries utilize roughly twice the amount of graphite than lithium carbonate, and as battery technology continues to evolve, the use of graphite in an increasing number of applications is also expected to provide growth opportunities for the graphite market in the future.MASON GRAPHITE INC COM NPV (OTCMKTS:MGPHF) has successfully positioned itself to become an important player in this market.Take a look at the company’s price movement: MGPHF Daily ChartIn September 2015, the company issued the positive results of a Feasibility Study for the Lac Guéret project that featured a long life, low cost operation with an Internal Rate of Return of 44%. Mason Graphite is now focused on obtaining all permits required to begin construction in 2016, with the aim of achieving production in 2017.On September 14, 2017, the company announced that it has been informed by the “Ministry of Développement durable, Environnement et Lutte contre les changements climatiques that the public hearing mandate recently given to the Bureau des audiences publiques en environnement for the Lac Guéret graphite project has been withdrawn”.SourceBrief OverviewFor our readers who are just coming across Mason Graphite Inc for the first time, here is a brief profile of the company.Mason Graphite Inc. was established in 2012 and is a graphite mining and processing company based in Canada. The company is currently focused on the development of the Lac Guéret project in northeastern Quebec, Canada. The management of the company believes Lac Guéret holds one of the highest grade graphite deposit in the world. Mason Graphite Inc. acquired Lac Guéret from Cliffs Natural Resources in 2012 for $14.0 million. Based on the feasibility study conducted in 2015, the mineral deposits in Lac Guéret hold proven and probable mineral reserves of 4.7million tonnes in the first 25 years.The company’s shares are listed on TSX Venture Stock Exchange in 2012 under the ticker LLG.P and on the American stock exchange Over-the-Counter QX ("OTCQX") in 2013 under the symbol MGPHF.Recent DevelopmentsIn September 2017, Mason Graphite Inc reported that NanoXplore has become a public company following a Reverse Take-Over transaction with GranizMondal Inc. and the concurrent closing of a $9.7 million equity financing with various institutions, which was done at a price per share of $0.45, giving NanoXplore an initial market capitalization of $36.3 million Mason Graphite's ownership now stands at 25% of NanoXplore, post financing round.Mason Graphite is the sole supplier of graphite to NanoXplore and is also a sales, marketing and distribution agent. Furthermore, both companies are working closely together based on a Laboratory Service Agreement and an exclusive License Agreement for certain processes which were established in 2015.The company recently announced material progress in its permitting process related to the Lac Guéret project with the acceptance of its Environmental Impact Study (''EIS") by the Minister of Sustainable Development, Environment, and the Fight against Climate Change ("MDDELCC"). The EIS, originally filed in November 2015, will now be rendered public in its complete form. A summary was presented to the hosting populations and made publicly available in June 2016, summary on which they provided questions and comments which were taken into consideration in the final version of the EIS.In June 2016, Mason Graphite Inc. and the Innu Council of Pessamit signed a Mushalakan Agreement, an Impact Benefit Agreement ("IBA") resulting from the 2014 Cooperation Agreement between the Parties.The Mushalakan Agreement, negotiated directly between the Pessamit Council and the executives of Mason Graphite, reflects the willingness of the Parties to work closely together to ensure that the Lac Guéret graphite mining project is a success and benefits the Pessamit Community and the population of Manicouagan. In a same voice, Chief René Simon and BenoîtGascon, CEO of Mason Graphite, explained they were very pleased with the agreement and welcomed this new collaboration between the Pessamit First Nation and the company.Financial PerformanceSince acquisition of Lac Guéretin 2012, Mason Graphite Inc has concluded several rounds of financing. In January 2014, the company raised $0.7 million from a private placement involving NanoXplore. Further, in June 2014 another round of funding of $4.15 million was concluded involving financiers such as Caisse de Dépôt; Fonds de solidarité FTQ and Fondsrégional de solidarité FTQ Côte-Nord. Till date, further private placements were concluded in April 2014 and September 2016 of $11.5 million and $28.8 million respectively.The company’s capital structure is a combination of shares outstanding of 114.43 million units, options of 10.31 million units (at an average strike price of $0.79) and debt capital worth over $7.0 million. As at March 31 2917, the cash position of Mason Graphite Inc was $18.0 million, showing that the company does not have challenges with liquidity.ConclusionGiven the huge deposits and quality of minerals, Mason Graphite Inc is strategically positioned to capture the extant value in the Lac Gueret deposits.We will be updating our subscribers as soon as we know more. For the latest updates on MGPHF, sign up below!Disclosure: We have no position on MGPHF and have not been compensated for this article.