Canada Carbon Inc. (formerly Bolero Resources Corp.) (the "Company', "Canada Carbon") (TSX VENTURE:CCB), (FRANKFURT:U7N1) is pleased to announce that it has entered into a term sheet ("Term Sheet") with 9228-6202 Quebec Inc. (herein "Quebec Inc") a private Quebec corporation, to acquire certain mining claims in relation to three properties: the Miller, Walker and Dun Raven graphite mines. The transactions contemplated by the Term Sheet require the definitive purchase agreements (herein, the "Agreements"), Canada Carbon board approval and the approval of the TSX Venture Exchange.
Canada Carbon's CEO, Paul Ogilvie commented, "Acquiring the Miller Lump/Vein Property is an opportunity to assess the potential for production on a Lump/Vein property outside of Sri Lanka. We feel the other two properties, Dun Raven and Walker will be great material feeder properties to our Asbury Project".
The Miller Mine is a past producer of graphite located 70km west of Montreal. This mine may have been the first graphite operation in Canada. It was worked around 1845 to at least 1900 when it was reported that a twenty-five car trainload of lump graphite was shipped from the deposit. The property consists of nine claims covering 5.4km2 including the past mine and similar geology around the original deposit, with road access and power nearby. The mineralization at the mine site consists of five veins of varying widths with unknown direction or depth. The quantity and grade is unknown but such veins usually consist of high grade mineralization ranging from 30 to 90% graphite. Vein graphite is the most valued natural form of graphite, and is currently only mined in Sri Lanka. There is no certainty that further exploration will result in the development of similar deposits. As consideration for the transfer and sale of the Miller Claims and related assets, the Company will at the closing make a cash payment of $50,000 CDN and issue 1,000,000 common shares to Quebec Inc. A further tranche of 1,000,000 shares will be issued under a performance schedule that both parties will work through and will complete on or before closing. The performance is based on milestones of grade, quality and feasibility. In addition, the Company shall pay to Quebec Inc a 2% NSR Royalty, to be defined in the definitive Agreement.
The Walker Mine is a past producer of graphite located 30 km northeast of Ottawa. The property consists of four claims covering the past mine and eleven claims covering interesting geological formations with potential graphite mineralization around the original deposit. More than thirty pits have been reported on the past producing property. Massive graphite veins have been found at the Walker Mine. As consideration for the transfer and sale of the Walker Claims and related assets, the Company will at closing make a cash payment of $50,000 CND and issue 1,500,000 shares to Quebec Inc. A further tranche of 1,000,000 shares shall be issued under a performance schedule that both parties shall work through and will complete on or before closing. The performance is based on milestones of grade, quality and feasibility. In addition the Company shall pay to Quebec Inc a 2% NSR Royalty, to be defined in the definitive Agreement.
The Dun Raven is a graphite deposit located near Shawville, QC, about 80km west of Ottawa. A geophysical anomaly exists of which only about 15% has been drilled. A historic resource was calculated to contain 571,532 tons of ore grading 4.72% graphite, based on the drill assays. The package consists of fifteen claims, one of which includes almost the entire anomaly. As consideration for the transfer and sale of the Dun Raven Claims and related assets, the Company will at closing shall make a cash payment of $10,000 CDN and will issue 250,000 shares to Quebec Inc. A further tranche of 250,000 shares will be issued under a performance schedule that both parties will work through and will complete on or before closing. The performance is based on milestones of grade, quality and feasibility. In addition the Company shall pay to Quebec Inc a 2% NPR Royalty, to be defined in the definitive Agreement.
A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves; and Canada Carbon is not treating the historical estimate as current mineral resources or mineral reserves.
ABOUT CANADA CARBON INC. (TSX VENTURE:CCB)
Canada Carbon is a carbon sciences company - our goal is to be an efficient graphite mining and production company. We are trying to achieve this by deploying proprietary technologies in our post mining and pre-milling air classification systems, sound environmental policies, best practices companywide and employing the best people available to us. Together, our goals will be realized by being customer centric and using leading edge technologies.
Canada Carbon holds 100% interest in two graphite properties, The Asbury and The Maria Graphite Projects. The Asbury Mine, a past producing Asbury Graphite Mine property consists of two claims and is located approximately 10km northeast of Notre-Dame-du-Laus and about 120km north of the Ottawa-Gatineau area. The open pit mine and mill were in operation from 1980 to 1989 where a total of less than 70,000 tons were processed. The Maria Graphite Project consists of 38 mineral claims located in Maria Township, 17km south of the community of Bissett Creek on the Trans Canada Highway between the cities of Ottawa and North Bay, Ontario. These claims cover an area of approximately 2,000 hectares (4,940 acres) that surround and are contiguous to Northern Graphite's Bissett Creek graphite deposit. Northern Graphite recently reported the extraction of very large high purity flake graphite consistent across the entire resource with overall recovery rates of 97%. (NGC.V News Release 23/04/2012).
FORWARD LOOKING STATEMENTS: This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances.
All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in Canada (available at www.sedar.com).
"Neither 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 release."