Vancouver, BC / ACCESSWIRE / April 29, 2014 / Berkwood Resources Ltd. (TSX-V: BKR) ("Berkwood" or the "Company") is pleased to announce the closing of the first tranche of its previously announced non-brokered private placement offering (the "Offering") (see the Company's news release dated March 21, 2014 for further information respecting the Offering). Under the first tranche, the Company issued 4,219,000 non-flow-through units ("Non-Flow-Units") at $0.06 per non-flow-through unit and 3,619,000 flow-through units ("Flow-Through Units") at $0.06 per flow-through unit, for aggregate gross proceeds of $470,280.
Each non-flow through unit and flow through unit consists of one common share (non-flow through or flow through, as the case may be) and one-half of one common share purchase warrant. Each full warrant entitles the holder to purchase one additional non-flow-through common share of the Company at $0.10 per share for a period of two years from the date of issuance.
The proceeds from the Offering will be used for exploration programs, acquisitions and general working capital. The Company will use the gross proceeds from the sale of the flow-through shares for Canadian exploration expenses ("CEE"), within the meaning of the Income Tax Act (Canada), with the Company using its commercial best efforts to ensure that such CEE qualify as a "flow-through mining expenditures" for the purposes of the Income Tax Act (Canada), related to the exploration of the Company's mineral exploration projects located in Canada.
Finder's fees of $7,046.40 in cash and 290,800 non-flow through units were paid in accordance with the policies of the TSX Venture Exchange. The shares and warrants issued by the Company are subject to a four month hold period, which expires on August 26, 2014.
About Berkwood Resources:
Berkwood has an option to earn a 100% interest in the Lac Gueret East Graphite Property, located in northeastern Quebec. The Lac Gueret East Graphite Property is adjacent to the eastern boundary of Mason Graphite's advanced Lac Gueret Property which has 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). Berkwood's Lac Gueret East Graphite Property shares a similar geological environment to Mason Graphite`s Lac Gueret Property including along strike stratigraphic units and structures.
Berkwood holds a 100% interest in the Prospect Valley Gold Property near Merritt, BC. Several areas of gold mineralization have been identified on the 10,871 Ha property. The majority of historic drilling has taken place in the centre of the claim block along the Discovery Trend. This drilling has outlined an extensive low grade epithermal gold system with indications of potential for additional and higher grade mineralization. The system remains open for expansion and other known zones of gold mineralization have yet to be drilled (see Berkwood news release dated January 25, 2012, for details).
To view details, maps and photos of Berkwood's properties please click the following link: http://www.berkwoodresources.com/properties.html.
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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.