News Release Video: https://youtu.be/sYDJzGHhbuM
November 26, 2019, VANCOUVER, B.C. – Berkwood Resources Ltd. (TSX-V: BKR, FSE: BK2N, WKN: A2DNV4) (“Berkwood” or the “Company”) is pleased to announce that it has entered into an offtake agreement and Memorandum of Understanding (“MOU”) with the Carbon6 Group of Companies (“C6”) of Toronto, ON to advance the Company’s Lac Guéret South and Lac Guéret Extensions projects with a view to securing evaluation and development funding, and long term product client arrangements.
C6 was attracted to Berkwood’s graphite because of its high grade and high percentage of large and jumbo size flakes, which is unique compared to most graphite deposits.
The offtake agreement is for up to 20,000 tonnes a year and is subject to C6’s positive analysis of Berkwood’s Graphite as well as Berkwood securing funding for development and subsequent start up of a graphite mine. Berkwood is currently developing its Lac Guéret Extension property, which host a graphite showing that include 1.76 million tons grading 17.00% Cg in the Indicated category and also 1.53 million tons grading 16.40% in the inferred category. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Inferred Mineral Resources represent material that is considered too speculative to be included in economic evaluations. Additional trenching and/or drilling will be required to convert Inferred and Indicated Mineral Resource to Indicated or Measured Mineral Resources/Reserves.
The Carbon6 Group of Companies (“C6”) comprises specialized carbon commodity entities that lead investment in the material ownership of assets and trading relationships with graphite commodity purchasers through strategic supply agreements, royalty streams, asset acquisitions and industry joint ventures. The MOU provides for a non-exclusive relationship wherein C6 takes a long-term view of Berkwood’s development in anticipation of meeting its rapidly growing customer demand through an offtake agreement with Berkwood, the structure of which will be advanced following a product analysis and testing program to be initiated immediately by C6.
The product analysis and testing program will focus on characterisation of project products, at C6 cost, to profile preliminary Lac Guéret products against C6’s customer/feedstock requirements. The preliminary ‘graphite qualification’ characterisation work and initial report from C6 to Berkwood is anticipated to be available in less than three months.
C6 will also engage with Berkwood to seek and secure evaluation and development funding through graphite sector investors known to C6. In the event of successful financing from introductions and structuring arrangements led by C6, the Company will pay to C6 certain finders fees for funds raised through C6 subject to TSX Policy 5.1, to a maximum of 5%. Finder’s fees are payable subject to Exchange approval.
Thomas Yingling, CEO commented: “Our offtake agreement and MOU with C6 adds depth to the Berkwood Lac Guéret Extensions evaluation initiative and our emerging plans to fund our development studies for Lac Guéret South. We look forward to working with C6 to further characterise the potential products from Lac Guéret South, and to extend our relationships in the graphite trade community.”
Paul Gorman, Director and Managing Partner of C6 commented on the new relationship stating: “the Lac Gueret South graphite deposit is a project that has high quality flake material in a mining friendly jurisdiction which will serve our North American hi tech customers extremely well once in production. Working with Tom and his team on securing development funding while we showcase his natural flake material through strategic qualification and sampling programs will position Berkwood as a leader in the critical elements and chemistry space and assist C6 in satisfying the growing global need for high purity natural graphite.”
Qualified Person: Steven Lauzier, P.Geo. OGQ1430, a Qualified Person as defined by National Instrument 43-101 guidelines, has reviewed and approved the technical content of this news release.
About the Company: Berkwood is engaged in exploration for the commodities that enable the modern revolution in essential technologies. These technologies are dependent upon the ethical mining and supply of naturally occurring elements and minerals that enhance the performance of energy storage systems and permit the development and miniaturization of new electronics and structural components for the new suite of innovative tools. The Company is led by a team with collectively over 200 years experience and whose members have been involved with the discovery of several producing mines.
On Behalf of the Board of Directors
Berkwood Resources Ltd.
President, CEO & Director
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Disclaimer for Forward-Looking Information:
Certain statements in this release are forward-looking statements, which reflect the expectations of management. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions, which may prove to be incorrect.
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