(via Thenewswire.ca)
TSX Venture Exchange Inc. (the "Exchange") has accepted for filing an option agreement among Berkwood Ventures Ltd. (the "Company") and Sylvie Charbonneau, Francois Marcotte and Wen Fan (collectively, the "Optionors") dated May 18, 2012 (the "Option Agreement") pursuant to which the Company has been granted an option to acquire a 100% interest in the Lac Gueret East Property.
Under the terms of the Option Agreement, the Company may 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 |$35,000|750,000 units * | |Exchange | | | |acceptance | | | |------------------------------------------------------------------| |Six months from TSX Venture Exchange|$75,000|500,000 common shares| |acceptance | | | |------------------------------------------------------------------| |Twelve months from TSX Venture |$75,000|375,000 common shares| |Exchange | | | |acceptance | | | |------------------------------------------------------------------| |Eighteen months from TSX Venture |$75,000|375,000 common shares| |Exchange | | | |acceptance | | | --------------------------------------------------------------------
An aggregate net smelter royalty ("NSR") of 2% shall be payable to the Optionors 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 Optionors for an aggregate payment of one million dollars ($1,000,000).
The Company will pay a finder's fee to Jeffrey Flowerdew equal to 8% of the cash payable and shares issuable under the Option Agreement.
For further information, see the Company's news release of May 22, 2012 which is available under the Company's profile on SEDAR.
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 CEO and 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."
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, 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 km? 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 (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.
If you are not currently on the Berkwood Resources email list, please visit our website by clicking here to opt-in to the list: http://www.berkwoodresources.com/contact.html. The Company will send out regular updates and news releases to everyone who asks to be on the list.
For additional information please contact:
Karim Sayani, Corporate Communications
Tel: (604) 662-7455 E-mail: karim@berkwoodresources.com
Tom Steer, Media Relations Manager
Tel: (604) 681-5556 E-mail: tomsteer@berkwoodresources.com
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.
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