Berkwood Resources Ltd (CVE:BKR) announced a boost for its Lac Gueret South graphite property in Quebec - as it finalised a $125,000 project finance agreement.
The deal with Intact Gold Corp, can see Berkwood earn a 2.5% interest in the project if it spends $125,000 on the project by December 31, 2018.
During a period of six months, either party will have the right to execute a buyback, in which Berkwood would buy the 2.5% back by paying Intact 875,000 Berkwood units.
Each unit allows Intact to receive one share and one-half warrant of the company.
"I am very pleased to have Intact partnered with our near-term advancement of our Lac Gueret South discovery," said Tom Yingling, president and CEO at Berkwood.
"We are determined to advance the project toward a preliminary economic assessment as soon as is practical, and we are thrilled to have the financial support and technical endorsement of Intact as we prepare to drive the project forward."
Last month, the firm revealed that phase four drilling at Zone 1 of Lac Gueret South was continuing.
The work is aimed at extending eastward and to infill drill portions of the current geological model ahead of a potential preliminary resource estimate.
So far, Berkwood has drilled nine new holes for 1,080 meters of newly acquired core on Phase 4, to bring the total drilling at Zone 1 to 5,086 meters over 36 drill holes.
Before the phase four work, Berkwood has sunk 27 holes on zone 1 totaling 4,006 metres of drilling. Phase four is intended to comprise upward of 2,000m (meters) of core drilling.
Lac Gueret South lies in Cote Nord, eastern Quebec, which is a three-hour drive north from Baie-Comeau in an area with very good infrastructure.
It lies directly south of Mason Graphite's advanced Lac Gueret project. Mason is developing one of the largest medium-to high-grade graphite deposits in the world.
It consists of 288 claims which cover a total area of 15,552 hectares.
Shares added over 7% in Toronto to stand at $0.075 each.
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