Focus Graphite announced that Caterpillar Financial Services expressed its formal interest to further evaluate the company’s Lac Knife Project in order to provide Focus with a financing solution for Lac Knife’s development.

Cat Financial provides innovative financial solutions for clients across the globe including integrated project and structured financing solutions.

“Cat Financial’s letter of interest represents an important milestone as we develop the Lac Knife project financing structure,” said Don Baxter, Focus Graphite president and COO. “Both parties are discussing mine equipment leasing plus project financing options with a view to achieving a mutually satisfactory conclusion.

“This financing package could potentially represent 12% of the total project financing requirements and reduce operating costs as we move to owner-mining instead of contractor-mining as outlined in our feasibility study.”

Baxter added, “Cat Financial’s interest in Focus’s advanced position in the Canadian graphite mining sector underscores the significant progress the Focus team has made in developing our Lac Knife high purity graphite mining project.”

While there is not yet a formal commitment in place with Cat Financial, financing discussions are continuing with a number of investors and institutional funds, in both the public and private sector with an objective to minimize shareholder dilution through a mix of debt and equity financing. The provincial government of Quebec also provides some financing alternatives that are not available in other jurisdictions, Baxter said.