Berkwood and the Carbon6 Group enter into an Offtake agreement
2200 – 1250 Rene Levesque Blvd. Montreal QC H3B 4W8
Phone: (438) 469-0705
2410 – 610 Granville Street Vancouver BC V6C 3T3
Phone: (604) 343-7740
email: [email protected]
Website: www.berkwoodresources.com
Berkwood and the Carbon6 Group enter into an Offtake agreement
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”) comprise s 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 Ber kwood, 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 preli minary 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.
TSX-V: BKR
FSE: BK2N
WKN: A2DNV4
2
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.
‘Thomas Yingling’
President, CEO & Director
FOR MORE INFORMATION, PLEASE CONTACT:
Investor Relations:
[email protected] or 1-604-343-7740 www.berkwoodresources.com
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
3
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.
Neither 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.