Halifax, Nova Scotia–(Newsfile Corp. – April 10, 2018) – ELCORA ADVANCED MATERIALS CORP. (TSXV: ERA) (FSE: ELM) (OTCQB: ECORF), (the “Company” or “Elcora”), is pleased to announce that it has entered into a strategic relationship with Elephant Red Maple Leaves New Material Technology (Suzhou) Co., Ltd. (“Elephant Red”). The objective is to develop graphene coatings applications.
In keeping with its vertically integrated strategy, Elcora is now involved with its partners in the development of environmentaly friendly coatings products. Elcora and its strategic partners are now pursuing the use of graphene in the coatings business for functional and production efficiencies — for instance, by replacing or reducing toxic materials such as cuprous oxide and zinc.
The partners will also further explore graphite powder anodes opportunities in Asia and develop graphene enhanced components for Lithium-ion batteries. Elephant Red has many industrial clients and a growing network of about 300 distributors in China. The partnership will lead into an international expansion plan, including export of paint-coatings products to markets outside China (Canada, Cambodia, Malaysia, Mexico and the Philippines), including the opening of a flagship store in the Greater Montreal Area.
“We are pleased to announce this newly formed partnership with Elephant Red. They are pursuing a dynamic strategy to become the leader in coatings and graphene applications” said Troy Grant, CEO of Elcora Advanced Materials.
Elcora’s Graphene Research and Production Laboratory in Bedford, Nova Scotia has been upgraded to support the required research and development. The Company is producing graphene and is continuing to optimize the product with plans to expand production as required. Elcora is also in discussions with a number of coatings and energy companies for partnerships in the development and commercialization of complementary graphene products.
Elephant Red has agreed to invest $1 million into Elcora to pursue development of this research with the goal of producing commercial products for the coatings market.
The investment is part of a non-brokered private placement offering (the “Private Placement”) of up to 7,800,000 units (“Units”) at a price of $0.32 per Unit to raise aggregate gross proceeds of up to $2,500,000. Each Unit will be comprised of one common share and one common share purchase warrant. Each full warrant gives the holder the right to purchase one additional common share of Elcora at an exercise price of $0.55 for two years following the closing of the Private Placement.
All securities issued pursuant to the Private Placement will be subject to a statutory four-month hold period. The proceeds from the Private Placement will be used for funding additional graphite processing, graphene coating and lithium-Ion battery testing, and for general corporate purposes. Completion of the Private Placement is subject to the approval of the TSX Venture Exchange and is expected to close on or about April 30, 2018.
Sri Lanka Mining and Processing
As of August of last year, Elcora has started to look for a complementary development plan for the mining and supply of Sri Lanka graphite. These opportunities will be in areas of past producing mines and existing mines where Elcora can establish a supply agreement. The first element in Elcora’s vertically integrated chain is the supply of quality graphite through a newly formed Sri Lankan Company providing access to additional mining sites and processing capabilities as a sole shareholder. Elcora has since then assembled a strong management team in Sri Lanka, with the objectives to significantly increase output and productivity from its own properties over the next few years . In June of 2014, the Company concluded a deal to become a 40 percent shareholder and operator of the Sakura Company, which owns the Ragedara Mine. Elcora relinquished its role as operator of the Ragedara mine to focus on setting up its new Sri Lankan operations, leaving the majority shareholder of Sakura responsible for the operations and development of the Ragedara mine.
Change of Auditor
The Company further announces that the Board of Directors of the Company has appointed Dale Matheson Carr-Hilton LaBonte LLP Chartered Professional Accountants, as the Company’s new auditors, replacing PricewaterhouseCoopers LLP Chartered Professional Accountants.
The Company has filed a Notice of Change of Auditors in respect of this change under its profile on SEDAR at www.sedar.com.
About Elcora Advanced Materials Corp.
Elcora was founded in 2011 and has been structured to become a vertically integrated graphite & graphene company that mines, processes, refines, and produces both graphite & graphene and end-user graphite & graphene applications. As part of the vertical integration strategy, Elcora is securing high-grade graphite and graphene precursor graphite from operations in Sri Lanka and other countries which are already in production. Elcora has developed a unique low cost-effective process to make high-quality graphite, graphite products and graphene that are commercially scalable. This combination means that Elcora has the tools and resources for graphite and graphene vertical integration.
For further information please visit the company’s website at http://www.elcoracorp.com
For further information please contact: Troy Grant, Director, President & CEO, Elcora Advanced Materials Corp., T: +1 902 802-8847 F: +1 902 446-2001.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. No stock Exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain “forward-looking statements”. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Elcora, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Elcora’s expectations are exploration risks detailed herein and from time to time in the filings made by Elcora with securities regulators.
Investors are cautioned that, except as disclosed in the filing statement prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon.