LÉVIS, QUÉBEC–(Marketwired – Feb. 17, 2016) – Graniz Mondal Inc. (the Company) (TSX VENTURE:GRA.H) has renewed an “Option agreement” concerning the acquisition of a large flake graphite deposit near Mont-Laurier. The Mousseau West property consists of 12 mineral claims covering a total area of 489 hectares. A NI 43 101 Report (by A. Tremblay and Y. Bussières, qualified persons) dated September 2013 has confirmed the presence of a graphitic marble deposit totaling 4.2 million tonnes, with a 6.2% graphite content.
Graniz Mondal is looking for a senior partner to implement a feasibility study for an open-pit operation. Some preliminary milling tests performed on the mineralization suggest that a significant portion of large graphite flakes can be recovered. This indicates high confidence in the possibility of mining, milling and concentrating this graphite mineralization into a final graphite product suitable for consumers. The nature of the mineralization is similar to the Imerys’ TIMCAL graphite mine near Mont-Laurier. The morphology of the graphite deposit, as suggested by the authors of NI 43 101 Report (qualified persons), is very suitable for open-pit mining, with a low waste-to-ore stripping ratio. The zonation of grades in the graphite deposit allows access to richer mineralization first and lower grades later, which allows a future operator some flexibility. A large part of the conductive zone to which Mousseau West belongs remains unexplored.
The “Vendors” and the Company have agreed to amend the “Option agreement” of December 13, 2012 for the acquisition of a 75% interest in the Mousseau West graphite property (“Mousseau West”) from the current owners (“Vendors”) of the property: Berthe Lambert (a director of the Company) as to 45%, Richard-Marc Lacasse (an insider of the Company and a former director and President of the Company), as to 45% and Donald Théberge ( a former director and the President of the Company) as to 10% (collectively, the “Vendors”. It was agreed to defer a cash payment of $165,000, with an 8% rate of interest, first on December 12, 2013, then again on December 19, 2014; this payment will be due on December 20, 2016. Two payments of $25,000, due on December 19, 2013, and December 20, 2014, were also extended to December 19, 2016. 2,000,000 shares were issued to the “Vendors” on December 19, 2012. The December 19, 2013 issuance of 1,000,000 common shares, as well as the December 20, 2013, issuance of a 1,000,000 common shares, were both deferred until December 20, 2016.
As a reminder, the original terms of the Company’s acquisition of a 75% interest in Mousseau West of December 13, 2012 were as follows:
- a cash payment of $165,000 plus 8% interest must be paid to the Vendors on or before December 19, 2013;
- 2,000,000 common shares must be issued to the Vendors immediately, pro rata in accordance with their percentage ownership of Mousseau West;
- on or before December 19, 2013, the Company must pay the Vendors $25,000 and issue them 1,000,000 common shares;
- on or before December 20, 2014, the Company must pay the Vendors $25,000 and issue them 1,000,000 common shares; and
- Berthe Lambert and Richard-Marc Lacasse will retain, collectively, a 2% net smelter returns royalty over and with respect to any and all graphite concentrate produced from Mousseau West, subject to the additional condition that the Company will retain a right of first refusal over any proposed sale of that royalty, it being understood that such royalty and right of first refusal will be in accordance with standard industry terms and conditions to be set forth in greater detail in the definitive agreements.
The “Option agreement” concerning the acquisition of a 75% interest in the deposit was also subject to the following: in each of the two years following the closing of the deal, the Company needed to make “approved expenditures” of $200,000 (as the term is defined by the TSX Venture exchange), totaling $400,000 over two years, without any contribution or payment from the Vendors. These conditions were fulfilled during the year 2013. As to the 25% interest retained by the Vendors, the Company shall have, and the Vendors shall recognize the Company as having, an option to purchase and the first right of refusal on this interest. The Vendors will retain a 2% NSR on any graphite concentrate produced by the Mousseau West property and the Company will retain a right of first refusal for its purchase.
For more information the Mousseau West Agreement, please consult on SEDAR, the December 21, 2012, Press Release on the information of the Acquisition of Mousseau West Property.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Berthe Lambert, President and CEO