VANCOUVER, British Columbia, Oct. 2, 2012 /PRNewswire/ -- Berkwood Resources Ltd. (TSX-V: BKR) (the "Company" or "Berkwood") announces that it has signed a Property Option Agreement (the "Agreement") with Groupe Ressources Geomines Inc. represented by Mr. Michel Belisle (the "Vendor") pursuant to which Berkwood has been granted an option to earn a 100%-interest in the Peter Lake Copper Property located near Mont-Laurier, Quebec.
The Peter Lake Property:
The Peter Lake Property (the "Property") consists of 24 claims totalling 1403 Ha located in the Mont-Laurier Terrane, in the Central Grenville Province, Quebec. The Property lies within a sequence of metasedimentary rocks, felsic intrusives and gabbros. Cu-Ni mineralization in the area closely follows northeast controlling structures. The mineralization lies within late gabbroic dykes and the mineralized structure has been traced for more than 2 km on surface. The property has the potential to host other minerals including Au, Mo and PGE.
Berkwood intends to conduct an exploration program on the Property commencing immediately, with a complete compilation of historic geological work followed by surface work, trenching and possible diamond drilling in the future.
Property Option Agreement:
Pursuant to the terms of the Agreement, Berkwood has the option to acquire a 100%-interest in the Property by making cash payments and issuing Berkwood securities, set forth as follows:
- $5,000 at the signing of the Agreement.
- $45,000 cash payment, and issue to the Vendor an aggregate of 750,000 common shares of Berkwood within fourteen days after the date of the approval of the TSX Venture Exchange.
- $50,000 cash payment to the Vendor twelve months after the approval by the TSX Venture Exchange.
An aggregate net smelter royalty ("NSR") of 2% shall be payable to the Vendors on all metals produced from the Property. The Company shall have the right at any time to buy back one percent (1%) of the NSR from the Vendors for an aggregate payment of one million dollars ($1,000,000).
This news release has been reviewed and approved by Alain Moreau, P. Geo., who supervised the preparation of the technical information in this news release. Alain Moreau a Qualified Person as defined by National Instrument 43-101.
To view maps and photos of the Peter Lake Copper Property, please click here.
About Berkwood Resources:
Berkwood holds a 100% interest in the Company's flagship property, the Prospect Valley Gold Property located near Merritt, BC. Several areas of gold mineralization have been identified on the 10,871 Ha property. The majority of historic drilling has taken place in the centre of the claim block along the Discovery Trend. This drilling has outlined an extensive low grade epithermal gold system with indications of potential for additional and higher grade mineralization. The system remains open for expansion and other known zones of gold mineralization have yet to be drilled (see Berkwood news release dated January 25, 2012 for details).
Berkwood also recently acquired an option to earn a 100% interest in the Lac Gueret East Graphite Property in Quebec. The 3,186 Ha property borders the eastern boundary of Mason Graphite's advanced Lac Gueret Graphite Project. A 2009 technical report by Tekhne Research which covered 17% of Mason Graphite's Lac Gueret Property with a resource of 7.5 million tonnes measured and indicated grading 20.4% Graphite.
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On Behalf of Berkwood Resources
"Brian Buchanan"
Brian Buchanan, President and Director
For additional information please contact:
Karim Sayani, Corporate Communications
Tel: (604) 662-7455 E-mail: karim@berkwoodresources.com
Tom Steer, Media Relations Manager
Tel: (604) 681-5556 E-mail: tomsteer@berkwoodresources.com
Forward Looking Statements
This Berkwood News Release may contain certain "forward-looking" statements and information relating to Berkwood that are based on the beliefs of Berkwood's management as well as assumptions made by and information currently available to Berkwood's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitation, competitive factors, general economic conditions, relationships with strategic partners, 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 and forward-looking statements may vary materially from those described herein. Except as required by law, Berkwood does not assume the obligation to update any forward-looking statement.
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.
SOURCE Berkwood Resources Ltd.