First Graphite forges license agreement with University of Adelaide
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Shares in First Graphite (ASX:FGR) were up more than 8% in the first hour of trading after the company announced that it had received a License Agreement Term Sheet from the University of Adelaide to progress the use of IP relating to multipurpose graphene-based, composite and fire retardant.
FGR’s Managing Director, Craig McGuckin said successful negotiation of the license would see the company with an exclusive worldwide license to commercialise the IP within the field of fire retardant applications, which would also include the right to sub-license.
In such circumstances FGR would be paying a royalty and fee to the University of Adelaide for the license.
In terms of the underlying IP, expandable flake graphite has been used for some time in flame retardant resins with their successful use being depended on the purity of the graphite flake, particle size of flake and also on the expansion properties of expandable graphite.
Using graphene in fire retardants
McGuckin is of the view that the use of graphene in these retardants will significantly improve their effectiveness and he sees this development as another step by FGR in progressing from research to commercial uses for graphene, as well as providing the opportunity to forge an important relationship with the University of Adelaide.
There have been some promising developments at FGR over the last two weeks and this is reflected in its share price which has increased from 9.5 cents to trade as high as 13.5 cents, representing an increase of more than 40%.
Investors were buoyed in mid-October by news that the first 20 tonne container of high grade graphite had been shipped from Sri Lanka and that the graphene production unit had been successfully commissioned.
Investors considering FGR should note that is an early stage company operating and the prospects surrounding its IP are yet to be proven, so seek professional financial advice if considering this stock for your portfolio.
Developing the high grade Sri Lankan project
FGR is looking to develop an underground mining operation in Sri Lanka which would provide the source material for its project. This region is renowned for its high grade, crystalline vein graphite.
Due to the nature of vein graphite, it is anticipated vein widths of approximately 25cm, using narrow vein mining techniques can be economically extracted from underground operations
FGR holds exclusive rights to exploration licenses covering nearly 40,000 hectares in the area with historical workings located within nearly all license grids.
Note, historical data in terms of share price trading patterns should not be used for the basis of an investment decision as these may not be replicated. Consequently, those considering an investment in this stock should seek independent professional financial advice.
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