OAKVILLE, ONTARIO -- (Marketwire) -- 12/19/12 -- 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.
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