(TSXV: CKR) March 20, 2017 – CKR Carbon Corporation is pleased to announce that it has retained First Republic Capital Corporation to act as its exclusive lead agent in respect of a brokered private placement to raise up to CDN$1,425,000.
First Republic will act as agent on a commercially reasonable efforts basis to sell up to 13,333,334 units of the company at $0.09 per unit to raise proceeds of up to $1,200,000 and up to 2,250,000 flow through shares at $0.10 to raise flow-through proceeds of $225,000.
Each unit is comprised of one common share of the company and one common-share purchase warrant of the company, with each common share purchase warrant entitling the holder to purchase one additional common share of the company at an exercise price of $0.20 for a period of three years from the date of issuance. In the event that the closing price of the company’s common shares on the TSX Venture Exchange (or such other exchange on which the company’s common shares may become traded) is $0.30 or greater per common share during any 10 consecutive trading day period at any time subsequent to four months and one day after the closing date, the warrants will expire, at the sole discretion of the company, at 4 p.m. Eastern time on the 30th day after the date on which the company provides notice of such accelerated expiry to the holders of the warrants and First Republic.
The company has agreed to pay First Republic cash compensation of a corporate finance fee equal to 2% of the gross proceeds of the private placement, and a sales commission up to 8% of the gross proceeds of the placement, and to issue broker units (on the same terms as the units) in respect of the sale of units or warrants to purchase common shares at $0.10 in respect of the sale of flow-through shares to First Republic exercisable for a period of 24 months in the following amounts: corporate finance broker units or broker warrants equal to 2% of the aggregate number of units or flow-through shares sold in the private placement, and selling compensation broker units or broker warrants up to 8% of the aggregate number of units or flow-through shares sold in the placement.
All securities issued pursuant to the private placement will be subject to a four-month hold period from the date of closing of the placement. The placement is subject to the approval of the TSX Venture Exchange.
The net proceeds from the sale of the units will be used for ongoing underground drilling and sampling at the Aukam Graphite Mine in Namibia, remaining studies required for a mining permit application, construction of a pilot plant and for working capital. The net proceeds from the sale of flow-through shares will be used for exploration of the company’s graphite projects in Quebec..
CKR has, through a binding 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 subject to agreement by Next. CKR has acquired 52% of the project and is on track to acquire the full 63%.
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.
CKR Carbon Corporation is an anode and value-added graphite development company. CKR is focused on high quality, natural graphite suitable for use in lithium-ion batteries, graphite foil, graphene and other value-added high growth technology applications. We only select projects requiring low capital and a short time to market. The company has 33.2 million shares outstanding.