Guelph health tech company looks to advance a Hearst-area graphite mine – by Staff (Northern Ontario Business – February 15, 2023)

Zentek and B.C. numbered company consider partnership to develop the Albany graphite deposit

A southern Ontario healthcare solutions company is looking to spin off its high-grade graphite deposit, west of Hearst, into a separate mine development entity to advance it toward commercial production.

Guelph-based Zentek said in a Feb. 15 news release that it has signed a non-binding letter of intent with a numbered company in British Columbia to “transfer” its Albany deposit into the hands of a publicly-listed company to be registered on a Canadian stock exchange.

Zentek will retain a majority ownership in this development outfit. In the release, Zentek maintains its current share price – $2.08 on the TSX – is undervalued by the market considering it possesses a graphite deposit, once described as a highly pure “freak of nature.”

The Albany deposit is situated just off Highway 11 near the community of Constance Lake First Nation. It was first discovered in 2011. Zentek said spinning off Albany into a separate company delivers better shareholder value and will enable the potential mine to move forward with a second year of environmental baseline and hydrogeology studies.

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