Canadian-based Caribou King Resources has announced an agreement to acquire Micron Investments, which holds an option to acquire 63 per cent of the Aukam mine, located on 125 000 acres in southern Namibia’s //Kharas Region.
“We see this acquisition as an opportunity to diversify our asset base into a jurisdiction that is considered by many to be one of the most mining friendly areas in the world,” stated president Mike England. “Aukam is the only past producer of graphite in Namibia and we look forward to redeveloping the site using modern technology and knowledge.”
According to Caribou, infrastructure at the Aukam graphite project is good with access to the site possible throughout the year. The site is relatively close to a main tar road, and a national power grid passes two kilometres from the property. Water is available in large amounts from underground aquifers with an old pump station at the foot of the mountain, which was used to supply previous operations with water.
Terms of the deal call for Caribou to issue 3.5 million shares to arms-length vendors and incur up to US$1.1 million in expenditure over an eighteen-month timeframe with year one’s cash commitment approximately US$125 000.
Caribou said the shares will be issued upon closing of the transaction and will be released for trading.
The first 25 per cent of the shares are to be released four months from the date on which the purchaser receives all necessary approval with respect to Aukam (the trigger date); another 25 per cent in eight months from the trigger date; 25 per cent in 12 months and the final 25 per cent in 16 months from the trigger date.
“Global graphite demand is being driven by the development of new markets for clean and efficient energy alternatives, smart grid infrastructure and military capabilities,” reads a statement released by Caribou.
Caribou King Resources is a publicly-traded Canadian junior exploration company that holds a portfolio of prospective graphite projects at various stages of exploration and assessment.