Uragold Closes the Sale of the Asbury Graphite Property to Canada Carbons
December 04 2012 - 8:56AM
Marketwired Canada
Uragold Bay Resources Inc. ("Uragold") (TSX VENTURE:UBR), is pleased to announce
that it has closed the previously announced agreement to sell 100% of the Asbury
mining claims to Canada Carbon (TSX VENTURE:CCB).
Pursuant to the terms of the agreement dated August 29th, 2012 Uragold received
a total cash payment of $300,000 CDN and 5,000,000 common shares of Canada
Carbon Inc.
Furthermore, Canada Carbon will pay to Uragold a yearly royalty of 0.75% on the
net production cost for a period of 10 years after the start of graphite
production.
On closing of the transaction contemplated by the Agreement, Uragold entered
into a voting and standstill agreement whereby Uragold agreed not to sell more
than ten percent (10%) of Canada Carbon Common Shares through the facilities of
any stock exchange on which Canada Carbon Common Shares are listed during 36
months from the date of the closing and also agreed that for a period of two (2)
years after the date hereof, at any meeting of Canada Carbon, it shall vote all
its Canada Carbon shares in accordance with any motion carried by the Canada
Carbon Management with respect to the election of Directors of Canada Carbon.
This agreement shall be valid as long as Uragold holdings in Canada Carbon is at
least 5% of the issued and outstanding share capital of Canada Carbon calculated
on a fully diluted basis.
Patrick Levasseur, president and COO of Uragold stated. "As a large shareholder
of Canada Carbons, Uragold supports Canada Carbon management's objective of
re-opening the Asbury Graphite mine. With this transaction now completed,
Uragold is now well position to reap the benefice of Canada Carbon growth
strategy. Uragold will focus on developing the cash generating potential of our
Beauce Placer Gold project, a project that is at its final permitting stage. "
About Uragold Bay Resources Inc.
Uragold Bay Resources is a junior exploration company trading on the TSX Venture
under the symbol UBR. Uragold holds gold properties in Southern Quebec's
Appalachian belt. Uragold's business model focuses on developing small scale
low-cost mining operations for their cash flow generating potential while
simultaneously exploring core properties that hold the potential for the
discovery of blue sky gold deposits like the MacDonald project.
Shares outstanding: 44,184,327
FOR FURTHER INFORMATION PLEASE CONTACT:
Bernard J. Tourillon, Chairman and CEO
Patrick Levasseur, President and COO
(514) 846-3271
www.uragold.com