QUEBEC CITY, QUEBEC--(Marketwire - Nov. 16, 2012) - Graniz Mondal Inc. ("Graniz" or the "Company") (TSX VENTURE:GRA.H) is providing the following update regarding its proposed acquisition of Mousseau West.
As previously announced, Graniz proposes to acquire a 75% interest in a prospective graphite property which it refers to as the "Mousseau West" graphite property ("Mousseau West"). The Mousseau West is currently owned by Berthe Lambert (as to 45%), Richard-Marc Lacasse (as to 45%) and Donald Theberge (as to 10%) (collectively, the "Vendors"). Mme Lambert and Mr. Theberge are directors of Graniz, and Mr. Theberge is also the President of Graniz. Mr. Lacasse is an insider of the Company and a former officer and director of Graniz. Pursuant to its agreement with the Vendors for the acquisition of Mousseau West, the Vendors would retain a 25% ownership interest in Mousseau West.
Mousseau West is comprised of 12 mining claims covering approximately 489 hectares straddling the boundaries of Brunet and Mousseau Townships, located approximately 12 kilometres north of the town of St-Veronique, Quebec. The property is located in the Laurentian Highlands and contains hills ranging from 50 metres to 520 metres, as well as small lakes and ponds.
Graniz is pursuing the acquisition of Mousseau West with a view to then exploring the property for graphite.
The terms and conditions of the Company's proposed acquisition of the Mousseau West property are disclosed in the Company's press release of June 26, 2012 (filed at www.sedar.com on July 19, 2012), as well as the information circular dated August 27, 2012 filed by Graniz at www.sedar.com on August 31, 2012.
In the course of conducting its due diligence review of the Mousseau West property and investigating the arrangements for, and feasibility of, conducting drilling and other exploration activities on the property, management of Graniz ascertained that a portion of the mining claims that comprise the property are located within the boundaries of a proposed regional park.
The claims in question, which lie within approximately 200 metres of the eastern boundary of the proposed park, include those that host the historic 597,980 tonne resource (grading 7% graphite to a depth of 40 metres) that was previously identified at Mousseau West. It is important to note that this resource, calculated in 1991, is historic and was not identified and verified under National Instrument 43-101. This resource is identified in "Mousseau Property, Internal Report, Summary of the Situation, by Indresco Canada Inc. (Graphicor Resources Inc.) dated January 1994, and filed with the MRNF under GM 53101." Although the estimate must be validated under current mineral resource exploration standards, Graniz considers this estimate to be relevant and reliable because it was arrived at through more than 50 drill holes covering in excess of 4,000 metres. A qualified person (as defined National Instrument 43-101-Standards of Disclosure for Mineral Projects ("NI 43-101")) has not completed sufficient work to classify this historic resource estimate as current mineral resources or mineral reserves (as defined in NI 43-101), and Graniz is not treating this historical estimate as a current mineral resource or mineral reserve.
The proposed park, which is tentatively named Kiamika, has not been identified on any of those documents maintained by the Ministere des Ressources Naturelles et de la Faune du Quebec that are normally provided to or reviewed by those working in the mineral resource exploration industry. The proposed park would be a regional park, and not a national or provincial park.
Management and the Board of Directors of the Company have considered the repercussions of the creation of this proposed park on the Company's plans for the exploration and development of Mousseau West. In doing so, they acknowledge that, should an economically feasible deposit of graphite or other mineral(s) be discovered at Mousseau West, the proposal to establish a new regional park over an area that includes Mousseau West should be viewed as a signal that significant efforts may be required in order to satisfy the local community as to the benefits of engaging in mining on the property, and in order to address concerns about the environmental impacts of these activities. In that regard, management of Graniz recently met with local authorities to introduce the Company's plans for Mousseau West and to begin to liaise with those involved in the proposed creation of the park, and has also been in contact with staff of the Ministere des Ressources Naturelles et de la Faune du Quebec with a similar view.
However, notwithstanding that there is a proposal to include a portion of Mousseau West within a new regional park, management and the Board of Directors of Graniz have determined to proceed to complete the acquisition of Mousseau West. The reasons considered by management and the Board in reaching this decision include the facts that the proposed park is still in its early planning stages, that regional and municipal governments have no authority to prevent a holder of outstanding mineral claims from exploiting any mineral resources found within the subject properties, that Mousseau West lies toward the edge of the proposed park, that it hosts a historic graphite resource that was previously identified through exploration on the property and that it is adjacent to other properties that are currently subject to active exploration.
Although the Company expects that the location of the Mousseau West property within a regional park will require that management engage in additional consultation and planning in connection with its exploration and development plans for the property, management remains confident that it will be able to proceed with its planned drilling program. This continued optimism with respect to the prospects for success at Mousseau West is based in part on the new discovery announced by Standard Graphite Corp. (TSXV:SGH) on its Mousseau East property, which is adjacent to Mousseau West, wherein significant widths of up to 30 metres of graphite-bearing rocks have been observed in core and the continuity of the Oat Lake zone has been confirmed. (Please see the press release issued by Standard Graphite Corp. on October 16, 2012.)
With a view to being able to commence its drilling program on Mousseau West promptly following the closing of its acquisition of that property, the Company has applied for the permit it will require to cut certain trees while undertaking drilling on the Mousseau West property. Further to that application, management has provided the Ministere des Ressources Naturelles et de la Faune du Quebec with all documents and information required for the issuance of this permit, and Graniz is awaiting the issuance of the permit.
Considering this new information, the Company and the Vendors have agreed to amend their agreement for the purchase and sale of Mousseau West on the basis that the acquisition will proceed if Graniz is able to raise at least $500,000, including the $317,000 that was already raised by the Company at a first closing that it announced on July 27, 2012. The closing of this private placement is currently scheduled for November 27, 2012, and Graniz plans to move to close the acquisition of a 75% interest in Mousseau West concurrently with the private placement closing, or immediately thereafter.
The disclosure in this press release with respect to mineral resource exploration matters has been approved by Donald Theberge, President of the Company and a "qualified person" under NI 43-101.
Neither the 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. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Completion of the acquisition and private placement are subject to a number of conditions, including but not limited to TSX Venture Exchange acceptance and disinterested shareholder approval. Where applicable, the acquisition and private placement cannot close until the required shareholder approval is obtained. There can be no assurance that the acquisition and private placement will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the acquisition and private placement, any information released or received with respect to the acquisition and private placement may not be accurate or complete and should not be relied upon. Trading in the securities of Graniz should be considered highly speculative.
The TSX Venture Exchange has in no way passed upon the merits of the proposed acquisition and private placement.
The foregoing information may contain forward-looking statements relating to the future performance of Graniz Mondal Inc. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially from the Company's plans and expectations. These plans, expectations, risks and uncertainties are detailed herein and from time to time in the filings made by Graniz with the TSX Venture Exchange/NEX and securities regulators. Graniz does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.