Sep 7 2013
Canada Carbon Inc. (the “Company”) is pleased to announce that it has entered into a surface access agreement (the “Agreement”) with two landholders who are affiliated with each other (collectively, the “Landholder”) in respect to its Miller Hydrothermal Lump-Vein Graphite Property (“Miller”).
The Agreement provides the Company with surface access for an initial period of five years (the “Term”) and allows the Company to carry out regular graphite prospecting and exploration programs including, but not limited to, conducting topographic, geological, geochemical and geophysical surveys, conducting underground or surface excavations, explorations and drillings, digging and trenching, and obtaining and testing geochemical or metallurgic samples.
R. Bruce Duncan, CEO of Canada Carbon stated, “We are very pleased to have secured this surface access agreement which we believe is advantageous to all stakeholders and will form the basis for the continued development of the Miller Property. Canada Carbon is now in a position to carry out more extensive exploration activity at Miller. We anticipate upcoming results from our recently completed VTEM airborne survey as well as assay results from our diamond drill program. When combining the exceptional graphite purity test results with a favorable logistical location we feel there is significant potential for Miller Graphite project.”
The Agreement grants the Company an exclusive and irrevocable option to acquire or lease all or part of the Property from the Landholder reasonably necessary for the extraction of mineral substances (the “Option”). If the Company exercises the Option, either by acquiring or leasing all or part of the Property prior to the expiry of the Term, the Term will be extended through the period of Commercial Production.
Logistical Benefits of the Miller Graphite Mine
- The Miller property covers 20.7 km2 and is located 80 km west of Montreal
- Main roads are located 1 km from the work area and connect by a gravel road to the deposit
- Highway 50 is 4 km from the property and a rail line is 500 meters south of the highway
- A power line crosses the property 500 metres south of the historical Miller graphite mine
- River water can be accessed 250 metres southeast of the property
- Private land reduces timely administrative processes needed to obtain government authorization
- Mobilization time and costs are greatly reduced due to close proximity of local expertise
Pursuant to the Agreement, and subject to the prior approval of the TSX Venture Exchange, the Company has agreed to issue 40,000 common shares in the capital of the Company (“Common Shares”) to the Landholder for the first year of the Term, and for each subsequent year of the Term and until the Company begins operating the Property as a mine (not including milling for the purposes of testing by a pilot plant) (“Commercial Production”), either 40,000 additional Common Shares, or $5,000 payable in cash, at the option of the Landholder. Should Canada Carbon begin Commercial Production during the Term, the payments outlined above will cease and the Landholder will be entitled to a 2.5% net smelter royalty upon and subject to the terms of definitive royalty agreements.
On Behalf of the Board of Directors
CANADA CARBON INC.
Source: http://www.canadacarbon.com/