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Leading Edge Materials shares up as firm updates on strategic review which includes opportunities for its Woxna graphite mine in Sweden

Woxna is targeting the supply of specialty materials for lithium-ion battery production
Mine site
The Woxna mine site

Shares in Leading Edge Materials Corp (CVE:LEM) (OTCQB:LEMIF) advanced as the group unveiled the next stage of its strategic review, namely a look at opportunities for its flagship Woxna graphite mine in Sweden.

Potential recommendations may include a transition to a freestanding European company, and will also consider direct third-party investment into Woxna, said LEM.

READ: Leading Edge Materials made good progress in graphite and in Romania last year; names interim CEO

It will also mull a horizontal or vertical joint-venture with aligned parties, or a standalone public listing of Woxna on a Swedish exchange.

Woxna is targeting the supply of specialty materials for lithium-ion battery production.

The firm listed the merits of the Woxna project, which included:

  • A fully constructed mine, with all operating equipment, infrastructure and waste management in place to produce 10,000 tonnes of flake graphite per year with operating permits until 2041;
  • Substantial sunk capital such that further capital investments to achieve commercial volume of high purity anode production are forecast to be relatively modest;
  • Potential to be a first mover in the supply of European sustainably-sourced ultra-high purity natural graphite anode for lithium-ion batteries; and
  • The opportunity for Woxna graphite to be used as a feed material for graphene production, and as a supplier to other high-value applications.

"The Woxna graphite mine is a unique project in the sector, with the capacity to be both a near-term and long-term supplier of European natural graphite anode, and other high value graphite products including graphene, to European customers," said Mark Saxon, interim CEO.

"Woxna has consistently attracted significant interest, with a high European industrial awareness of potential products and regular inquiries around current status.  The strategy review is seeking mechanisms to accelerate the transition of the mine from the production of flotation concentrate only, to the production of high-purity anode, which should be beneficial to both Leading Edge Material shareholders and emerging European lithium ion battery customers."

Shares in Toronto added around 8% to $0.20.

Contact Giles at [email protected]

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