Focus Graphite (CVE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) has said that it is exercising a legal recourse against certain parties with regards to a transaction for the Labrador Trough group of properties.
Focus said in a statement Wednesday it has taken steps to protect its rights and claim damages, and initiated required action under applicable contracts.
No other details of the legal action were divulged, though the company said it would strive to keep its shareholders informed of any developments regarding the matter on a timely basis.
According to Focus Graphite's website, its longer-term development project in the Ungava-Labrador Trough region of Northern Quebec holds potential economic prospects for the discovery of gold, platinum, palladium, copper, zinc and nickel.
It owns 100 per cent of these 13 properties covering some 668 square kilometres running north-south from its Lemming property in southwestern Ungava Bay to Fox, some 75 kilometres east of Schefferville, Quebec.
Focus Graphite also boasts what it says is “the best technology-grade graphite in the world” at its flagship NI 43-101 compliant Lac Knife deposit, located in the Côte Nord region of Quebec.
Just yesterday, the company announced that Grafoid Inc - a privately held joint venture in which it holds a 40 per cent stake - has inked a three-year research and development agreement with Hydro-Quebec's Research Institute for the development of next generation rechargeable batteries, using graphene and lithium iron phosphate materials.
The source of the graphene is Focus' Lac Knife graphite deposit. The parties said they chose to focus their collaboration on LFP-graphene batteries and materials because of their "short-term-to-market potential."
Two key target markets were highlighted in the agreement - the rechargeable automobile battery sector, and batteries for mobile electronic devices used in smartphones, computing tablets and laptop computers - areas for which demand is projected to grow dramatically.
The company says that Lac Knife is unique because of its cost-mitigating, high concentration of large, medium and small flake graphite. Flake graphite - the most actively pursued type of graphite and associated with next-generation technologies - is made up of layers of graphene.
One of the most important milestones achieved by the company this year was its long-awaited preliminary economic assessment (PEA) on the Lac Knife project, showing average concentrate grades of 92% graphitic carbon.
With a mine life of 20 years, the open pit operation is expected to yield 300,000 tonnes per year, with life-of-mine production of 928,000 tonnes of concentrate at 92% graphitic carbon on average, or approximately 46,600 tonnes of concentrate per year.
Pre-tax net present value - at a 10% discount rate - was estimated at $246 million with a 32% pre-tax internal rate of return and a pre-tax payback period of 2.8 years.
Initial capital cost was projected at $154 million, inclusive of $33 million and $24 million in working capital and contingency (25 per cent), respectively.