Vancouver, B.C. / ACCESSWIRE / July 29, 2014 / Berkwood Resources Ltd. (TSX-V: BKR) (the "Company" or "Berkwood") is pleased to announce that it has signed a Mineral Property Option Agreement (the "Option Agreement") with a group of prospectors (the "Vendors") pursuant to which Berkwood has been granted an option (the "Option") to earn a 100%-interest in the Lac Gueret South Graphite Property located in northeastern Quebec.
The Lac Gueret South Graphite Property (the "Property") consists of 107 claims totalling 5788 Ha and borders the southern boundary of Mason Graphite's Lac Gueret Project, where a NI 43-101 compliant mineral resource estimate with measured & indicated mineral resources of 50 million tonnes grading 15.6% Cgr (including 6.6 million tonnes grading 32.4% Cgr) was announced.
The Lac Gueret South Graphite Property is also adjacent to, on all sides, a separate Mason Graphite property in the Lac Gueret region, which lies 12 km to the southwest of Mason Graphite's Lac Gueret Project.
The acquisition of the Lac Gueret South Property, in addition to Berkwood's 100% owned Lac Gueret East Graphite Property, which is east of and contiguous with Mason Graphite's advanced Lac Gueret Project, gives Berkwood a total of 9600 Ha in the region.
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Berkwood intends to conduct an aggressive exploration campaign on the Property commencing immediately.
Brian Buchanan, CEO and Director of the Company states: "This acquisition bolsters Berkwood's position in the Graphite space. The Lac Gueret South Graphite Property is well located in the Grenville Province, sharing a similar prospective geological environment and adjacent to Mason Graphite's Lac Gueret Project. We are fortunate to add this asset to our graphite portfolio in this prospective region and looking forward to starting exploration work."
Pursuant to the terms of the Option Agreement, Berkwood has the option to acquire a 100% -interest in the Lac Gueret South Graphite Property by making cash payments and issuing Berkwood securities as set forth below:
--------------------------------------------------------------------- | |Cash |Securities| |-------------------------------------------------------------------| |On signing |$15,000|0 | |-------------------------------------------------------------------| |On acceptance by the TSX Venture Exchange |$10,000|750,000 | | | |units * | |-------------------------------------------------------------------| |Thirty days from TSX Venture Exchange acceptance|$10,000|0 | |-------------------------------------------------------------------| |Six months from TSX Venture Exchange acceptance |$25,000|0 | |-------------------------------------------------------------------| |Twelve months from TSX |$25,000|0 | |Venture Exchange | | | |acceptance | | | ---------------------------------------------------------------------
* 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 $0.10.
An aggregate net smelter royalty ("NSR") of 2% shall be payable to the Vendors on all minerals 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).
Alain Berclaz, P.Geo., a consultant to the Company and a Qualified Person as defined by NI 43-101, has reviewed and approved the technical information contained in this news release.
About Graphite:
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, modern pebble bed nuclear reactors, 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, Large Flake 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.
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For additional information please contact:
Karim Sayani, Corporate Communications
Tel: (604) 662-7455 E-mail: [email protected]
Tom Steer, Corporate Development
Tel: (604) 681-7455 E-mail: [email protected]
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.