Gratomic is strategically repositioning to increase its focus on mining operations at the Aukam graphite mine and accelerate production.
The Canadian company had planned production of 12,000 tons by November 2024.
In a recent statement, Gratomic says no preliminary economic analysis, preliminary feasibility study, or feasibility study has been completed to support any production level.
It further stated that no mineral resources, let alone mineral reserves demonstrating economic viability and technical feasibility, have been delineated for the Aukam property.
However, Gratomic says it is working towards completing a study on scaling up the existing Aukam Processing Plant to a commercial-size facility capable of producing the desired concentrate grades and production rates.
The study’s recommendations and subsequent implementation will provide conclusions and recommendations at a feasibility study level of comfort.
Additionally, Gratomic says the supply of graphite is conditional on its ability to bring the Aukam project into a production phase and for any graphite being produced to meet specific technical and mineralisation requirements. “Gratomic continues to move its business towards production. As part of its business plan, it expects to file a National Instrument 43-101 Standards of Disclosure for Mineral Projects resource estimate in Q4 2025,” the company says.
Tristream Capital announced plans in June 2024 to inject £3 million (US$3.8 million) into the Aukam graphite project in exchange for a 5% royalty on graphite sales.
The companies signed a non-binding letter of intent on June 17, 2024, and a definitive agreement was expected to be signed within three months after Tristream had conducted due diligence.
Gratomic says the finalisation of the agreement will be done once an independent engineering firm releases the engineering report from Australia.
Gratomic CEO Arno Brand says it has been a challenging environment for graphite companies in the market.
Brand says seeing graphite pricing rebalancing and market sentiment strengthening is a relief. “These factors should yield positive results in completing the necessary steps to deliver our endeavours successfully,” Brand says.
Gratomic is also outsourcing all marketing of its product to an independent trading firm, while a house in Windhoek will be sold on November 30 for about C$712,000 net of commissions and taxes.
The sale proceeds will be put towards advancing and sustaining Namibian operations.
Meanwhile, Gratomic executive chair Bruno Baillavoine has left the company for personal reasons.
Gratomic says Baillavoine’s position will remain vacant, and the remainder of the board will absorb his duties as the company assesses the best candidate to fill the position later.
