Gratomic Signs Letter of Intent for $5.2 Million Royalty Financing

Gratomic Inc. ("Gratomic") has announced the signing of a non-binding Letter of Intent (LOI) with Tristream Capital. The agreement, dated June 14, 2024, involves Tristream Capital investing GBP 3 million (approximately CAD 5.2 million) in Gratomic. This investment will grant Tristream Capital a 5% Gross Sales Royalty on graphite sales from the Aukam Property, starting six months after the investment, for 5.5 years. The royalty will then reduce to 1% for the life of the mine.

The investment is contingent upon successful due diligence and the signing of a definitive agreement within 90 days. Gratomic will pay 10% annual interest on the investment amount for the first six months. Tristream Capital will prepare the definitive agreement, while Gratomic will cover due diligence expenses up to 30,000 British pounds.

An arm's-length party will receive a 5% finder’s fee upon the transaction's closing. Regulatory approval is required for the transaction. Gratomic emphasizes that no economic feasibility studies have been completed for the Aukam property, and production depends on further feasibility assessments.