/ CORRECTION - USA Graphite, Inc.
/ CORRECTION - USA Graphite, Inc.
LAS VEGAS, NV -- (Marketwire) -- 01/15/13 -- In the news release, "USA Graphite, Inc. Acquires the Ruby Mountains Graphite Property" issued yesterday by USA Graphite, Inc. (OTCQB: USGT), we are advised by the company that the headline should read "USA Graphite, Inc. Is Set to Acquire the Ruby Mountains Graphite Property" rather than as originally published. The acquisition of Ruby Mountains Graphite Property has not yet been completed. The full corrected text follows.
USA Graphite, Inc. Is Set to Acquire the Ruby Mountains Graphite Property
LAS VEGAS, NV -- January 14, 2013 -- USA Graphite, Inc. (OTCQB: USGT) (or "the Company") is pleased to announce it has signed a letter of intent to acquire the Ruby Mountains Graphite Property.
The Ruby Mountains Graphite Property has been identified by the Company as a high priority area for flake graphite. The claim block covers a large graphitic marble unit with flake graphite visible at surface.
The financial terms of the transaction consist of approximately $3,200,000 in cash and stock and a $500,000 work program commitment. A production Net Smelter Royalty (the "NSR") will be retained by the vendor equal to two percent (2%) of the net smelter returns, as per the terms and conditions of the Letter of Intent. The Company shall have a one-time right to purchase fifty percent (50%) of the NSR in the Property for five hundred thousand dollars ($500,000).
The Ruby Mountains Graphite Property is located approximately 25 miles southeast of Elko, Nevada. It's accessible via the Great Basin Highway (Highway 93) which intersects Interstate 80 via Lamoille Canyon Road. Excellent access to infrastructure, such as paved highways, electricity and clean water, are all readily available. The Property covers approximately 785 acres over a Cordilleran metamorphic core complex. This area of high-grade metamorphism has both graphitic marble and graphitic gneiss.
The Ruby Mountains and adjoining East Humboldt Range form a North American Cordilleran metamorphic core complex called the Lamoille Quadrangle. In brief, the core complex in the quadrangle exposes Neoproterozoic and lower Paleozoic miogeoclinal strata that were thrust-faulted, deeply buried, metamorphosed, recumbently folded, and intruded pervasively by Cretaceous to Oligocene granitoids. Cenozoic unroofing accompanied footwall rise below an inclined down-to-the-west extensional fault system. That fault system imprinted a ductilely sheared mylonitic carapace on the now-exposed deep footwall in Oligocene and Miocene time, and has continued into Holocene time to move as a gently dipping near-surface brittle fault.
Mr. Wayne Y. Yamamoto, President and CEO of USA Graphite, said, "We are very excited to include the Ruby Mountains Graphite Project amongst our core group of world class Nevada graphite properties. The quality of rock visible on-site exceeded our expectations and the proximity to our other core projects is complementary and economic."
-- 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 wonder material. -- 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 visit http://www.usa-graphite.com
"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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