Standard Graphite acquires Quebec Graphite Property for $375K, $400K shares, 1% NSR, Bonus on Resource Estimate
Standard Graphite Corp SXV:SGH announced a definitive agreement to acquire a 100% interest in the Mousseau East Graphite Deposit in southwestern Quebec. Under the agreement, Standard pays $25,000 cash on signing, $50,000 cash and $100,000 in shares (based on the 10-day volume-weighted average price as of issuance) within 48 hours of TSXV approval, $100,000 cash and $100,000 in shares within one year of TSXV approval and $200,000 cash and $200,000 in shares within two years of TSXV approval. If Standard files a resource estimate within one year of TSXV approval showing 5 million tonnes grading at least 6% carbon measured and indicated, the company pays the vendor an additional $500,000. If the resource shows 8 million tonnes grading at least 6%, the company pays $750,000. The vendor retains a 1% NSR which Standard may buy for $500,000.
The property lies within 50 kilometres of Timcal Graphite & Carbon’s Lac-des-Îles, one of North America’s two flake-graphite mines in operation. Mousseau has a 1992 non-43-101 resource estimate by Graphicor Resources that showed 598,480 tonnes grading 8.29% C proven, 219,450 tonnes grading 8.13% probable and 288,760 tonnes grading 7.85% possible.
Our first goal wouldn’t be to bring in a 43-101 resource based on historic results because that would only require confirmation drilling. We plan to expand the resource as well—Chris Bogart
President/CEO Chris Bogart tells ResourceClips.com, “A couple of things attracted us to the Mousseau East Deposit. Number one, it’s a developmental asset, so it takes Standard Graphite from being an exploration company into the developmental stage. It had a significant amount of historic work done on it, with an historic resource in place. Obviously, we’re excited about that. We like the numbers. The grade was exceptional. The mining scenario is excellent. And the opportunity to grow the deposit from what had previously been explored was there as well. It opens up a lot of opportunities.
“We’re going to start by analyzing the historic data,” he continues. “As I said, there was a tremendous amount of work done on it in the past, so we need to work off of what has been done and collect and analyze that data in order to plan a future exploration development program. But our first goal wouldn’t be to bring in a 43-101 resource based on historic results because that would only require confirmation drilling. We plan to expand the resource as well.”
He adds, “The infrastructure’s great. It’s just off Highway 117, about 12 kilometres by road. So everything looks positive, and we’re very excited. Now that we have the Mousseau East Deposit, Standard Graphite has a definite flagship in place and a developmental asset. We’re that much further ahead.”
by Greg Klein
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