News Summary
The most recent news (December 18, 2025) announces a non-brokered flow-through private placement to raise up to $300,000 through the issuance of 2,500,000 shares at $0.12 per share. The proceeds are earmarked for strategic initiatives at the La Loutre graphite project—specifically the bulk sample processing and anode piloting—as well as exploration at the Yellow Fox antimony-gold project in Newfoundland. This follows a corporate update confirming that processing of the 200-tonne bulk sample at Corem Research Center is scheduled to begin in January 2026.
Material Impact
– The $300,000 raise is relatively small compared to the requirements of a Pre-Feasibility Study (PFS) and a 200-tonne bulk sample program, suggesting a hand-to-mouth financing strategy.
– The financing price of $0.12 is at a 20% premium to the recent trading price of $0.10, which is typical for flow-through shares in Canada due to tax incentives but reflects limited appetite for “hard dollar” investment at higher valuations.
– Materiality is tempered by the November 7, 2024 disclosure that the company lost $500,000 (over 60% of a previous $845,000 raise) to a “social engineering incident.” This loss significantly weakened the balance sheet and necessitated these frequent, smaller raises.
– The move to start processing the bulk sample in January 2026 is a positive operational milestone, but the company remains high-risk due to its tight capital position and the significant dilution occurring at low share prices.
Catalysts
– Results from the Corem pilot plant processing in early 2026; specifically, the ability to produce battery-grade (99.9%+) coated spherical purified graphite.
– Completion and results of the Yellow Fox Phase II soil sampling and prospecting in Newfoundland.
– Delivery of the La Loutre Pre-Feasibility Study (PFS) originally targeted for late 2025/early 2026.
– Any recovery of the $500,000 lost to fraud or updates on improved internal financial controls.
Materiality Conclusion
The news is Routine – Positive. While securing funds is necessary for survival, the amount is insufficient to de-risk the project long-term. The company is effectively in a “bridge” financing phase, hoping that operational results from the bulk sample will spark enough market interest to support a larger, more stable capital raise.
