Next Graphite Inc. (fka GPNE)

[Infinitygold]

These news are huge based this filing on April 30, 2019 from Gratomic Inc. (“GRAT” or the “Company”) (TSX-V: GRAT) (FRANKFURT:CB81, WKN:A143MR)
https://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00026664
https://www.sedar.com/GetFile.do?lang=EN&docClass=5&issuerNo=00026664&issuerType=03&projectNo=02908851&docId=4510035
Aukam Graphite Project, Namibia
The Aukam Graphite project is a property located in Namibia’s Karas Region in Africa, which the
Company is exploring for graphite mineral resources.
Under the terms of a Joint Venture Agreement dated June 8, 2015, and amended July 17, 2015,
between the Company and Next Graphite Pty. Ltd. (“Next”), and a subsequent Farm-out Agreement
dated September 12, 2016, between the Company, and Next, the Company acquired 63% of Gazania
Investments Two Hundred and Forty Two (Pty) Ltd (“Gazania”) from Next by spending USD
$1,100,000 on the property (completed March 31, 2017). The agreements require the Company to:
a) Complete the plant and infrastructure set up (in progress), and
b) Obtain government authorization to begin commercial operations (in progress); and
c) Make quarterly payments for a total of USD$180,000 (completed).
Should the Farm-out period need to be extended beyond six months following receipt of a mining
license, Next will continue to be paid USD$25,000 per quarter until the plant and infrastructure set-up
are complete. In the case where the Farm-out period is extended as above and the revenue is less than
USD$100,000 per month, the Company will loan Next US$25,000 per quarter. Interest on the loan will
be compounded monthly at a rate equal to one-month term LIBOR plus one.
Should the Company fail to provide payment or work expenditures for any farm-out period or fail to
complete the plant infrastructure 6 months after receipt of the mining license, it will forfeit 2% of its
interest for each 30-day delay.
Following conclusion of the Farm-out period the Company will fund all operations to run all plant
related activities and expenditures for the first five months. Thereafter, each party will contribute
funding proportionate to their respective holdings.
Gazania holds an Exclusive Prospecting License (EPL) number 3895 (the “License”) for the Aukam
Graphite Project located in Namibia’s Karas Region, Africa. The Company has the option to buy an
incremental 10% of Next’s remaining interest for a cash payment of USD$180,000.
A 2% revenue royalty is payable to the individual who farms the property.
Under Namibian laws royalties are payable in connection with the Aukam Graphite Project as follows:
a) A 3% revenue royalty is payable the Namibian government.
b) A 6% net profit incentive, required under the Namibian Economic Empowerment Framework,
is payable to employees working on the project.
NON-CONTROLLING INTEREST
The Company gained control of Gazania, whose sole asset was a license to mine the Aukam project,
by earning a 52% interest on February 24, 2017. Up to the acquisition date, the Company had incurred
acquisition and exploration costs (deferred acquisition costs) of $1,317,844 which were reallocated to
exploration and evaluation assets upon acquisition and consolidation of Gazania in accordance with
IFRS 10. Concurrent with the recognition of $1,317,844 as exploration and evaluation assets, the
exploration and evaluation assets were grossed up by an amount of $1,216,620 to account for the
recognition of the non-controlling interests.
The Company thereafter obtained an additional 11% of Gazania on March 31, 2017, at which time the
non-controlling interest was decreased by $316,932, representing the value of the exploration and
evaluation asset given up by the non-controlling interest.
Next Graphite has a free carried interest in the Company until a specified period after the conclusion of
the farm-in period. Accordingly, the non-controlling interest has been increased by $210,285 (2017 -
$260,765) to reflect their interest in the funding. Changes to the non-controlling interest have been
offset to reserves.