VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 9, 2012) - Bolero Resources Corp. (the "Company" or "Bolero"), (TSX VENTURE:BRU), (FRANKFURT:U7N1) (PINKSHEETS:BRUZF) is pleased to announce that it has entered into a non-binding term sheet ("Term Sheet") with Uragold Bay Resources Inc. ("Ur agold" or "UBR") to negotiate a definitive agreemen t (the "Agreement") for the purchase of UBR's "Asbury" min ing claims. Uragold's shares trade on the TSX Venture Exchange under the symbol "UBR".
Under the Term Sheet, Bolero is required to make an initial contribution of $30,000CDN to UBR and a second cash payment of $70,000 CDN within thirty days of the signed Term Sheet. Upon closing of the transaction, Bolero will be required to make a further payment of $200,000 CDN and pay a yearly royalty of 0.75% on the net production cost for a period of 10 years after the start of graphite production.
Subject to completion of final due diligence, Bolero and UBR will enter into a definitive agreement for the acquisition of the Asbury mining claims ("Claims") held by UBR. As consideration for the transfer and sale of the Claims and related assets, on completion of the transaction Bolero will issue to Uragold 5,000,000 common shares.
Paul Ogilvie, CEO of Bolero said, "Our goal to own a number of former producing mines, is starting to become a reality - I'm very pleased with the planned acquisition of the Asbury mine. The Asbury property supplied graphite to a number of customers in the past, this is significant to us because it indicates the graphite should have customer acceptance in the market, and will speed up the process to receive supply agreements. Our team is in place and we're excited to start the engineering process for the property".
The company is working on several other acquisitions of former producing properties, and hopes that over the next couple of months, they can enter into term sheets to acquire two or three more.
The transaction is also subject to receipt by Bolero of the approval of the TSX Venture Exchange.
ABOUT ASBURY GRAPHITE MINE
The past producing Asbury Graphite Mine property consists of two claims and is located approximately 10km northeast of Notre-Dame-du-Laus and about 120km north of the Ottawa-Gatineau area. It is accessible by a good road and a power transmission line runs to the property. Some of the old mill structure still exists and could be refurbished to house a dry milling process. The open pit mine and mill were in operation from 1980 to 1989 where a total of less than 70,000 tons were processed. The operation was shut down in 1990 due to falling graphite prices.
A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves; and Bolero is not treating the historical estimate as current mineral resources or mineral reserves.
In 1974, a historic estimate of 578,000 tons grading 10% large flake graphite was reported. Additional drilling in 1985 indicated the potential for additional ore at the bottom of the pit and both to the north and south of the existing pit. These included significant intervals ranging from around 4 to 10% carbon.
A qualified person has not verified the relevance and reliability of the 1985 drill results outlined above and should not be relied upon until the Company can confirm them.
Past metallurgical tests on bulk samples from the deposit have shown that a graphite concentrate with a recovery of 85% was produced where by 50% of the concentrate falls into the large flake grade with an average carbon content of 90% and a flake size of +80 mesh. 25% fall in the medium flake category with an average carbon content of 80% carbon and a flake size between -80 and +200 mesh. With more advanced milling technology available today, these recoveries and purity may be significantly improved.
A qualified person has not verified the relevance and reliability of the 1974 metallurgical results outlined above and should not be relied upon until the Company can confirm them.
ABOUT BOLERO RESOURCES CORP. (TSX VENTURE:BRU)
Bolero Resources is a junior natural resource company focused on the acquisition and development of graphite, properties throughout Canada. Bolero holds a 100% interest in 38 mineral claims located in the Maria Township, 17 kilometres ("km") from the Trans Canada Highway between the cities of Ottawa and North Bay, Ontario. These claims cover an area of approximately 2,000 hectares (4,940 acres) and are contiguous to Northern Graphite's "Maria Township Graphite" Graphite deposit that recently reported high recovery levels of large-flake, high-purity graphite, consistent across their entire resource, with overall recovery rates at approximately 97%. (NGC.V News Release 23/04/2012)
Throughout 2012, Bolero intends to focus on its primary long term goals of acquiring and developing quality mining projects to create cash producing assets while building and strengthening our core operations in mineral exploration and development to ultimately increase overall shareholder value.
On behalf of the Board of Directors
R. Bruce Duncan, Executive Chairman
FORWARD LOOKING STATEMENTS: This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances.
All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in Canada (available at www.sedar.com).
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.