Berkwood Resources Ltd

March 03, 2011 09:45 ET

Berkwood Resources Ltd. Indonesian Subsidiary, Signs Option for Gold Property in Java, Indonesia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 3, 2011) - Berkwood Resources Ltd. ("Berkwood") (TSX VENTURE:BKR) the "Company", through its Indonesian subsidiary, PT. Berkwood Resources Indonesia, is pleased to announce that they have signed an option agreement with PT. Succes Mining Resources ("Succes"), to which Berkwood will acquire an exclusive option to a 100% interest in the 2,416 hectares of the Cimandiri Gold Project in Sukabumi, West Java (the "Property"). 

Succes, is the holder of the mineral exploration license ("IUP") for the Property, and the Property is in good standing under the laws of Indonesia and is free and clear of all liens, charges and encumbrances, in accordance with the laws of Indonesia, and is in good standing with respect to the filing of assessment work. The shareholders of Succes control or own all of the issued shares of Succes and have the absolute right to enter into this Option Agreement.

Berkwood may exercise the Option by making an initial payment of US$25,000.00 cash and further payments and issuing shares to Succes subject to the approval of the TSX Venture exchange (the "Exchange") as follows: Berkwood may exercise the Option by delivering written notice to the Shareholders of Succes, on payment of an additional US$95,000.00 in cash. In addition to the cash payments aggregating US$120,000.00 Berkwood will on completion of the Option, cause 900,000 shares of Berkwood Resources Limited, to be issued and delivered to the Shareholders of Succes. The Shareholders of Succes acknowledge that payment of the cash consideration and the issuance of the Berkwood Shares are subject to the approval of the Exchange except for the initial payment of cash, further payment of the cash consideration and the issuance Berkwood Shares may only occur after the receipt of the Exchange's approval. 

The Cimandiri Gold Property is located approximately 120 Km south of Jakarta, approximately 3 hours driving time. The property sits at an elevation ranging from 700-900m above sea level. Railway lines are nearby, with the closest rail station located only 8 Km from the property. The project is located approximately 9 Km southwest of the open pit Cikondang gold mine.

Brian Buchanan, President of Berkwood Resources states, "The Company is excited to have acquired this Indonesian property, prospective for gold and is looking forward to the commencement of our exploration program. The management of Berkwood believes that this initial project in Indonesia is an excellent way to build value for our shareholders."

About Berkwood Resources Ltd.

The Company is dedicated to the acquisition, exploration and development of gold, silver and other mineral deposits in North America, and South East Asia. The Company is developing two North American properties; one of the properties is a large Epithermal Gold Property in British Columbia and the other grass roots Lithium property.

The Company currently holds a 100% interest in the Prospect Valley Gold Property in Merritt, BC. The 10,790 hectare property contains several bulk tonnage gold targets and is only 30km south of the world class Highland Valley Copper Mine. In this complex geological environment, the property has the potential to host a significant gold mineralizing system and is viewed as a low grade, bulk mineable epithermal gold target. To date, over 13 target areas have been identified in the claim block. The majority of the targets are located in the centre of the claim block along a prominent north-northeast trending linear zone that includes the Discovery South Zone, the Discovery North Zone, the Ridgeline Target, the South East Target, the Crown Target, the NW Dome and NE Extension Zone. The project is currently in advanced stages of exploration. On July 20, 2009, the Company entered into an Option Agreement with Altair Ventures Incorporated of Vancouver, BC. 

Berkwood also has a 100% interest in the Fox Creek Lithium Property in an area outlined by the Alberta Research Council and Alberta Geological Survey as having potential for a large resource of lithium within the formation waters. The Company acquired mineral claims totalling 164,072 contiguous acres in an area prospective for lithium Based upon the concentrations of lithium in formation waters in the Leduc aquifers, further exploration could be warranted for lithium-bearing brines underlying the property. Based upon the concentrations of Lithium in formation waters in the Leduc aquifers, further staged exploration is warranted for Lithium bearing brines underlying the Property.

If you are not currently on the Berkwood Resources updates list, please contact Karim Sayani, Investor Relations at 604-662-7455 or Jamie Hyland, Tribeca Capital partners at 1-877-882-7894. For additional information, visit the Berkwood website at


Brian Buchanan, President and Director

This Company Press Release contains certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.

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 news release.

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