The negotiations also include supply of mineral processing equipment, which is estimated to have feasibility study cost of $12m.
The project could later include a second component associated with dewatering, filtration, and conveyance equipment for de-watering and dry-stacking of tailings.
Focus Graphite president and COO Don Baxter said: "FLS’s Letter of Interest represents another significant potential financing option as the Company develops the Lac Knife Structured Project Financing.
"This potential debt facility represents 7% of Lac Knife’s total project financing requirements, raising the total of potential vendor financing to approximately 20%."
FLSmidth specialises in dry-stacked tailings management, and provides mineral processing equipment and mining services.
Feasibility study for Lac Knife project earlier included a mine and concentrator operation, and showed capital expenditure requirement of $165.6m.
