USA Graphite Inc. to Acquire the Blue Wing Mountain Graphite Property
LAS VEGAS, NV -- (Marketwire) -- 11/26/12 -- USA GRAPHITE INC.
(OTCQB: USGT) or ("the Company") is pleased to announce it has
acquired a 100% stake in the Blue Wing Mountain Graphite property, a
strategic Project located in Pershing County, Nevada. The property
consists of 96 lode claims covering an area of approximately 1985
acres. Road access to the project is excellent and is situated
directly between I-80 East and US-395 North.
The financial terms of the transaction consist of approximately
$3,000,000 in cash and stock and a $1,000,000 work program
commitment. As well, to pay a production Net Smelter Royalty (the
"NSR") to NV Minerals equal to two percent (2%) of the net smelter
returns, per the terms and conditions of the Option Agreement. The
Company shall have a one-time right to purchase fifty percent (50%)
of the NSR in the Property for five hundred thousand dollars
Initial prospecting and geological analysis on the claims confirmed
the presence of flake graphite at surface. The dominant rock type on
the property is hornfels, which are dark grey to black in color with
pockets of flaked graphite throughout the known outcrops. Extensive
sections of the Blue Wing Mountains Graphite Project contain abundant
chiastolite (andalusite) crystals in a matrix of graphite-rich,
Two different hornfels units have been mapped based on the amount of
the chiastolite content. These two units comprise 90% of the Blue
Wing Mountains and both units are rich in high carbon content flake
graphite. The chiastolite at the Blue Wing Mountains Graphite Project
occurs in a black, graphite-rich politic pyroxene-hornfels. The
presence of carbon in the chiastolite and the high graphite content
of the hornfels suggest that the Blue Wing Mountains were formed by a
granite intrusion into an oil-rich shale.
Pershing County is well known for its mineralogical potential with
mines such as the Florida Canyon Mine, Colado Mine and Empire mine,
all located within the region.
Mr. Wayne Y. Yamamoto, President and CEO of USA Graphite, said, "We
are pleased with our initial acquisition in the graphite space. Our
geological efforts to date are very encouraging and confirm the
sence of flake graphite on our property. The size of the property
and the quality of graphite on the property lead us to believe that
the Blue Wing Graphite property could host a multi-million ton
-- Graphite is used in refractories -- used to line high-temperature
equipment; pencils; lithium-ion batteries -- used in consumer
electronics and electric vehicles, including the Nissan Leaf, Tesla
Model S and others; fuel cells; and Pebble Bed nuclear reactors. It is
used in foundries, lubricants and brake linings.
-- Graphite is also used to produce graphene, a tightly packed single
layer of carbon atoms that can be used to make inexpensive solar
panels, powerful transistors, and even a wafer-thin tablet that could
be the next-generation iPad* or iPod*.
-- Graphene, extremely light and strong, has been called the world's next
-- The closure of graphite mines in China, which produces 75% of the
world's graphite, has resulted in a fall in global graphite production
to 1.3 million tonnes per annum in 2011. Like rare earths, China is
restricting the export of graphite to protect its own domestic
industries. The second largest producer is India, followed by Brazil,
North Korea, Austria and Canada.
*trademarks of Apple Inc.
About USA Graphite:
USA Graphite is a publicly traded US
exploration company focused on the acquisition, exploration and
development of world-class graphite properties in North America. USA
Graphite intends to become a domestic (US) graphite supplier. The
USGS has reported that the USA has been a 100% net importer of
graphite over the last 5 years, sending billions of dollars out of
America. USA Graphite has holdings in Nevada, offering considerable
potential for the discovery and development of large flake,
high-grade graphite, whereby mineralization is exposed at surface and
clearly evident at economic depths. For additional information please
"Safe Harbor" Statement:
Under The Private Securities Litigation
Reform Act of 1995: The statements in the press release that relate
to the Company's expectations with regard to the future impact on the
Company's results from new products in development are
forward-looking statements, within the meaning of the Private
Securities Litigation Reform Act of 1995. Notice Regarding
Forward-Looking Statements - This press release includes
forward-looking statements that involve a number of risks and
uncertainties, including the success of the programs it is
commercializing and developing. Further, the risks involve the
ability of the Company to raise capital to fund its operations and
the capital requirements for the development and marketing of its
products. Investors are encouraged to review the risk factors listed
or described from time to time in the Company's filings (10K, 10Q's,
S-1 and others) with the Securities and Exchange Commission.
USA Graphite Inc.
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