Canada Carbon Inc. (TSXV:CCB) announced that it has finalized an agreement to buy the Asbury mine, a past-producing graphite mine, from Uragold Bay Resources Inc. (TSXV:UBR). The company plans to reopen the mine within 12 to 14 months.
As quoted in the press release:
Pursuant to the terms of the mining claims purchase & transfer agreement (“Agreement”) dated August 29th, 2012 (as amended by amending agreement dated October 11, 2012), Canada Carbon made an initial contribution of $30,000 CDN to UBR and a second cash payment of $70,000 CDN. Upon closing of the transaction today, Canada Carbon has made a further payment of $200,000 CDN and will pay a yearly royalty of 0.75% on the net production cost for a period of 10 years after the start of graphite production. As further consideration for the transfer and sale of the Claims and related assets, Canada Carbon issued to Uragold 5,000,000 common shares (“Common Shares”), representing approximately 8.7% of Canada Carbon’s issued shares.