Uragold Bay Resources Inc. ("Uragold"), is pleased to announce that it has closed the previously announced agreement to sell 100% of the Asbury mining claims to Canada Carbon.
Pursuant to the terms of the agreement dated August 29th, 2012 Uragold received a total cash payment of $300,000 CDN and 5,000,000 common shares of Canada Carbon Inc.
Furthermore, Canada Carbon will pay to Uragold a yearly royalty of 0.75% on the net production cost for a period of 10 years after the start of graphite production.
On closing of the transaction contemplated by the Agreement, Uragold entered into a voting and standstill agreement whereby Uragold agreed not to sell more than ten percent (10%) of Canada Carbon Common Shares through the facilities of any stock exchange on which Canada Carbon Common Shares are listed during 36 months from the date of the closing and also agreed that for a period of two (2) years after the date hereof, at any meeting of Canada Carbon, it shall vote all its Canada Carbon shares in accordance with any motion carried by the Canada Carbon Management with respect to the election of Directors of Canada Carbon. This agreement shall be valid as long as Uragold holdings in Canada Carbon is at least 5% of the issued and outstanding share capital of Canada Carbon calculated on a fully diluted basis.
Patrick Levasseur, president and COO of Uragold stated. "As a large shareholder of Canada Carbons, Uragold supports Canada Carbon management's objective of re-opening the Asbury Graphite mine. With this transaction now completed, Uragold is now well position to reap the benefice of Canada Carbon growth strategy. Uragold will focus on developing the cash generating potential of our Beauce Placer Gold project, a project that is at its final permitting stage. "