VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 14, 2016) - CKR Carbon Corporation. ("CKR" or the "Company") (TSX VENTURE:CKR)(FRANKFURT:CB8) is pleased to announce the signing of a binding Farm Out agreement (the Agreement) with Next Graphite Inc (Next) for the Aukam graphite project in Namibia. Under the terms of the Agreement CKR will earn a direct 63% interest in the License and the Project upon completion of (i) investing US$1.1 million in cash; or (ii) the completion of the plant and infrastructure set up; and (iii) government authorization to begin commercial operations. Completion of the plant and infrastructure setup may be less than US$1.1 million, in which case CKR will have earned its 63% interest prior to investing the full amount.
CKR has spent over US$400,000 to date on the project and has consequently earned a 23% interest in the project so far.
CKR must also make quarterly payments for a total of US$180,000 (US$85,000 paid to date) during the Farm-Out period which began on June 8, 2015 (on signing of the Joint Venture Agreement) and ends when CKR has earned its 63% ownership as outlined above.
Should the Farm-Out Period need to be extended beyond the time in which CKR has invested its US$1.1 million, Next will continue to be paid US$25,000 per Quarter [or pro-rata for a partial Quarter] until (i) the completion of the plant and Infrastructure set up; and (ii) government authorization to begin commercial operations. In addition, in the case where the Farm-Out period is extended, and the revenue stream from graphite sales is less than $100,000 per month, CKR will loan Next Graphite US$25,000 per quarter. Interest on the loan will be compounded monthly at a rate equal to one month term, London Interbank Offered Rate (LIBOR) plus one percent.
CKR also has the option to buy an incremental 10% of Next's remaining interest in the License for a cash payment of US$180,000, subject to agreement by Next.
In the event any material is sold at any time, any realizable amount from net proceeds of sale of the material shall be distributed to the parties in the following proportions: 63% to CKR and 37% to Next (after consideration to CKR for its costs). CKR currently has a Letter of Intent to supply up to 5,000 metric tonnes of graphitic material grading between 40 and 50% Cg (carbon as graphite) over the course of the next year (see News Release dated March 16, 2016).
The technical content of this news release was approved by Roger Moss, Ph.D., P.Geo a qualified person as defined by National Instrument 43-101.
About the Aukam Project
The Aukam Graphite Project is located on 34,082.15 hectares in southern Namibia close to the port city of Luderitz. The property hosts three underground adits which were mined periodically between 1940 and 1974. Five dumps from the historical mining occur on the property and 73 composite samples taken from the lower three dumps were assayed and averaged 42% Cg. While these composite samples were selected from a much larger screened sample of the dumps, they are not considered representative of the mineralization on the property as a whole.
CKR recently completed a bulk sampling program at Aukam, and has a letter of intent to sell the graphitic material produced during the program. CKR is currently undertaking studies to support an application for a mining license. The company maintains high safety and environmental standards and has a comprehensive strategy of social engagement.
About CKR Carbon Corporation
CKR Carbon Corporation is focused on high quality, natural graphite suitable for use in lithium-ion batteries, graphite foil and other value-added high growth technology applications. We only select projects requiring low capital and a short time to market. The company is listed on the TSX Venture Exchange under the symbol CKR and has 33.2 million shares outstanding.
"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."
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).