Berkwood Acquires Lac Gueret East Graphite Property in Quebec
VANCOUVER, British Columbia, May 22, 2012 /PRNewswire/ – Berkwood Resources Ltd. (TSX-V: BKR) (the “Company” or “Berkwood”) announces that it has signed a Mineral Property Option Agreement (the “Option Agreement”) with a group of three prospectors (the “Vendors”) pursuant to which Berkwood has been granted an option (the “Option”) to earn a 100%-interest in the Lac Gueret East Graphite Property located in Quebec.
Lac Gueret East Graphite Property:
The Lac Gueret East Graphite Property (the “Property”) consists of 59 claims totalling 3186 Ha and borders the eastern boundary of Mason Graphite’s Lac Gueret Property. A 2009 technical report by Tekhne Research which covered 17% of Mason Graphite’s Lac Gueret Property estimated a resource of 8.9 million tonnes grading 20.8% Graphite.
The Lac Gueret East Graphite Property lies within the same prospective geological environment as Mason Graphite’s Lac Gueret Property, in the Paleoproterozoic Gagnon Terrane which is considered a para-autochton unit fertile for graphite in the Grenville Province of Quebec and includes biotite/garnet/sillimanite/graphite paragneisses, dolomitic marbles and intrusive rocks. Graphite in the area is present in marbles and in contact with or within paragneisses and ranges from 3% to 40% Cg (Carbon Graphite) exhibiting flakes up to 5 mm in diameter. Large flake graphite is generally considered as 0.2 mm and above. The Lac Gueret East Graphite Property is within three hours of Baie-Comeau by road and is easily accessible via numerous tertiary and forest roads. Property maps and details are available on the Berkwood website, please click here.
Berkwood intends to conduct an aggressive exploration campaign on the Property commencing immediately, beginning with a complete compilation of historic geologic work followed by an airborne electromagnetic survey, surface work follow up, stripping and trenching, and core drilling. The exploration program will be under the supervision of EarthMetrix, a firm specialising in the field of structural geology, which has supervised over 600 projects in Canada and abroad for various mining companies for over 20 years.
R. Brian Buchanan CEOand Director of the Company states: “This Quebec acquisition will offer Berkwood a great opportunity within the emerging Graphite space. The Lac Gueret East Graphite Property is well located in the Grenville Province adjacent to the advanced Mason Graphite Lac Gueret Property in an attractive mining jurisdiction. We are fortunate to add this asset to our property portfolio and will initiate work immediately.”
The Option Agreement:
Pursuant to the terms of the Option Agreement, Berkwood has the option to acquire a 100% -interest in the Lac Gueret East Graphite Property by making cash payments and issuing Berkwood securities as set forth below:
Cash Securities ---- ---------- On signing $25,000 0 ---------- ------- --- Within seven days of TSX Venture Exchange acceptance $35,000 750,000 units * ---------------------------- ------- -------------- Six months from TSX Venture Exchange acceptance $75,000 500,000 common shares --------------------------- ------- --------------------- Twelve months from TSX Venture Exchange acceptance $75,000 375,000 common shares ------------------------------ ------- --------------------- Eighteen months from TSX Venture Exchange acceptance $75,000 375,000 common shares ---------------------------- ------- ---------------------
* Each unit consists of one common share and one common share purchase warrant, with each warrant exercisable for 24 months for an additional common share at a price of $0.15
An aggregate net smelter royalty (“NSR”) of 2% shall be payable to the Vendors on all metals produced from the Property. The Company shall have the right at any time to buy back one per cent (1%) of the NSR from the Vendors for an aggregate payment of one million dollars ($1,000,000).
A finder’s fee will be paid in connection with the transaction in accordance with the policies permitted by the TSX Venture Exchange. The transaction is subject to a number of conditions and approvals, including, but not limited to, TSX Venture Exchange acceptance.
This news release has been reviewed and approved by Alain Moreau, P. Geo., who supervised the preparation of the technical information in this news release. Alain Moreau is a Qualified Person as defined by National Instrument 43-101.
Berkwood Announces Private Placement:
In addition, the Company has elected not to proceed with the non-brokered private placement of 2.2 million units at 15 cents per unit for the gross proceeds of $330,000, as announced in a news release dated March 16, 2012 due to market conditions. Instead the Company announces a non-brokered private placement of 7.5 million units at 10 cents per unit for gross proceeds of $750,000.
Each unit shall consist of one common share and one common share purchase warrant. Each full warrant shall entitle the holder to purchase one additional common share of the company at 15 cents per share for a period of two years from the date of closing. A finder’s fee will be payable in accordance with the policies of the TSX Venture Exchange. The terms of the private placement are subject to approval by regulatory authorities.
The proceeds will be used for exploration programs, acquisition of properties and general working capital.
The commercial market for Graphite is diverse worldwide. The Graphite industry is experiencing an increase in demand from numerous industrial sectors, spanning both developing and developed economies. Traditional uses of Graphite include steelmaking, electrodes in electric arc furnaces, brake linings, pebble bed reactor linings, and dry lubricants. There has been an escalation in the use of Graphite in clean energies such as lithium ion batteries and fuel cells, which power hybrid and electric vehicles. The outlook for high-quality Graphite demand is strong due to the development of new technologies, which use Graphite as an essential component. The United States, Europe and China have included graphite among a short list of critical materials.
About Berkwood Resources:
Berkwood holds a 100% interest in the Prospect Valley Gold Property near Merritt, BC. To date, several areas of gold mineralization have been identified on the 107 km2 property. The majority of historic drilling has taken place in the centre of the claim block along a prominent north-northeast trending linear zone. This drilling outlined NI43-101 compliant Inferred Mineral Resources totaling 166,000 ounces grading 0.511 g/t gold in 10,077,000 metric tonnes above a cut-off grade of 0.30 g/t gold at the combined Discovery South and Discovery North Zones (see Berkwood news release dated January 25, 2012 for details). The zones remain open for expansion and other known zones of gold mineralization have yet to be drilled.
Berkwood also has a 100% interest in the Cimandiri Gold Property in Indonesia, located 120km south of Jakarta, approximately 3 hours driving time. The project is located 9km southwest of the Cikondang Gold open pit mine. Soil sampling and geological mapping are being carried out on the property at present, and will continue to report material results as they are received.
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On Behalf of Berkwood Resources
Brian Buchanan, President and Director
This Berkwood News Release contains certain “forward-looking” statements and information relating to Berkwood that are based on the beliefs of Berkwood’s management as well as assumptions made by and information currently available to Berkwood’s management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitation, competitive factors, general economic conditions, relationships with strategic partners, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. Except as required by law, Berkwood does not assume the obligation to update any forward-looking statement.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
SOURCE Berkwood Resources Ltd.