CKR Announces Signing of Graphite Supply Agreement
Vancouver, British Columbia--(Newsfile Corp. - October 4, 2016) - CKR Carbon Corp.. (TSXV: CKR) (FSE: CB81) ("CKR" or the "Company"), a graphite development Company, and operator of the Aukam vein graphite project in Namibia, is pleased to announce that it has entered into a definitive agreement (the Agreement) with a vertically integrated graphite producer (the "Producer") to supply an initial 5,000 tonnes of graphite per annum subject to granting of a mining license an application for which will be submitted in early 2017. The supply agreement expands upon the Letter of Intent signed in March (see News Release dated March 16, 2016). The agreement is for ten (10) years and the Producer has the option to renew the agreement for a further ten (10) years.
Following signing of the Letter of Intent, CKR supplied the Producer with several samples of Aukam vein graphite material for testing, including a 1.6 tonne bulk sample. The samples successfully passed preliminary testing, including testing for suitability in battery anodes. Additional testing by third parties is required, following successful completion of which the Producer will purchase a commercially reasonable quantity of graphite each year that could eventually reach 10,000 tonnes.
An estimated order for graphite will be placed with the Company at least four weeks prior to each quarter. Delivery of the graphite to the Producer shall be outlined in a final order that specifies quantity, material, sizing, packing, quality humidity and terms of payment. Price of the graphite will be negotiated at the time of each order in the context of prevailing market conditions. It is anticipated that product deliveries will take place Free on Board (FOB) Luderitz Bay, Namibia, approximately 200 kilometres by road from Aukam.
"This supply agreement gives the Company a market for the Aukam graphite, and the opportunity to be exposed to technology in the graphene and graphite anode space," said Roger Moss, CKR Carbon Corp. CEO. "We look forward to a long term relationship that is mutually beneficial to both companies."
The Company cautions that it has not conducted an economic study and it is uncertain if the Aukam graphite will be found to have demonstrated economic viability. The technical information in this news release was prepared by Roger Moss, Ph.D., P.Geo a qualified person as defined by National Instrument 43-101.
About the Aukam Project
CKR has, through a Farm Out Agreement with Next Graphite Inc. an option to acquire 63% of the Aukam graphite project by meeting certain milestones and making cash payments. It also has the option to buy an incremental 10% of Next's remaining interest in the License for a cash payment of US$185,000, subject to agreement by Next. To date, CKR has spent more than US$400,000 on the project and consequently earned a 23% interest.
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 Corp. 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.
For more information: visit the website at www.ckrcarbon.com or contact:
| Roger Moss, CEO, +1 416-704-8291 | E-mail inquiries: rmoss@ckrcarbon.com |
For graphite product enquiries:
| Arno Brand, Boswell Projects, +1 416-561-4095 | abrand@boswellprojects.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."
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).
