Saint Jean Carbon Signs Term Sheet for the Acquisition of the Clot
Lump Graphite Property
OAKVILLE, ONTARIO--(Marketwired - Jan 9, 2014) - Saint Jean
Carbon Inc. ("Saint Jean" or the "Company") (TSX-VENTURE:SJL) is
pleased to announce that it has entered into a non-binding
agreement with a non-arm's length party to acquire the Clot lump
graphite property (the "Clot Property"), a former past producing
mine. The Company intends to sign a definitive binding agreement
with respect to the Clot Property shortly.
The Clot Property is located in southern Québec, 10 kilometres
north-west of Mont-Tremblant and approximately 150 km north-west of
Montreal. The Clot Property is made up of 5 established claims and
3 claims under request for a total area of more than 297.4
hectares. The claims are located in highly metamorphosed rocks
which host a geological contact between a granitic intrusive and
marbles and quartzites, two metasedimentary units of the Grenville
geological Province. This represents a favorable geological context
which is known to host graphite deposits. The Company therefore
believes the site has good potential for graphite mineralization
similar to historic mining operations that occurred in the
area.
The CEO of SJL, Mr. Paul Ogilvie stated: "The Clot property is
on crown land and falls within the same geological and regional
areas as our Walker, Wallingford and St. Jovite lump graphite
properties and we are very pleased to have the opportunity to add
these new claims to our inventory of holdings which will complete
our lump acquisitions. This region has a long history of graphite
mining and we are looking forward to taking all steps necessary to
develop our properties into operating mines." A feasibility study
has not been completed and there is no certainty the proposed
operations will be economically viable.
History on the Clot Property
The new Clot claims surround an area that was known as the Clot
Mine. Graphite production was known to have occurred at the Clot
Mine between 1907 and 1919. Exploration, production and concentrate
assays were undertaken in 1951 (Bourret, 1951) with about 800 tons
of material extracted from the mine. Of that tonnage, 350 pounds
were hand cleaned and concentrated to obtain a grade of 99.72%
carbon. Also 14 tons of lumps contained 94.7% carbon. In addition
more than 100 tons of the material at the operating site was
estimated to over 35% graphite (Sigeom file GM01868). The remainder
of the extracted material was under 20% graphite or unclassified.
The deposit is reported to be at least 56m (185 feet) long and more
than 3m (10 feet) in width (Bourret, 1952) - A qualified person has
not done sufficient work to classify the historical estimate as
current mineral resources or mineral reserves; and Saint Jean is
not treating the historical estimate as current mineral resources
or mineral reserves.
Mrs. Isabelle Robillard the Company's geologist, P. Geo.,
Qualified Person approves this release commented: "The Clot
property offers a great opportunity to find high grade graphite, in
a relatively unexplored area located in the vicinity of the
historical Clot Mine. The geological context is highly favorable to
find additional lump veins".
Land access to the claims comprising the Clot Property is
provided by multiple public secondary all weather roads, from
highway 117. Accordingly, future work programs can be completed
throughout the year. Local resources are also available at the
nearby cities of Labelle, located 3km along good road from the Clot
Property. Most of the Clot Property is on public land and water is
abundant from lakes and rivers crossing the property in a
north-south direction. Power, transportation and housing are
available nearby and a local work force could support a mining
operation. The nearest railroad station is in Labelle and goes up
to the Clot Property on its west claim.
The Clot Property acquisition terms contemplate a payment of
$5,000 CDN on signing of the term sheet; an issuance of 3,500,000
shares and a cash payment of $2,500 CDN on closing; a further
1,000,000 shares on the first anniversary of the closing provided
certain conditions are met. The Clot Property acquisition is
subject to the approval of the TSX Venture Exchange.
About Lump/Vein Graphite
Lump or Vein graphite is considered to be one of the rarest,
commercially valuable, and highest quality types of natural
graphite. It occurs in veins along intrusive contacts in solid
lumps and is currently only actively mined in Sri Lanka. As a
result of the carbon content typically found within lump/vein
graphite, production costs are normally lower than flake or
amorphous graphite recovery. Lump graphite processing techniques
can include everything from hand sorting of large concentrated
samples to standard crushing, grinding, froth flotation and
milling. Lump/vein graphite is suitable for many of the same
applications as flake graphite giving it a distinct competitive
edge in terms market prices and product applications.
About Saint Jean
Saint Jean is a publicly traded junior mining exploration
company with a number of mining claims. The Walker property
consists of 4 claims covering the past mine and 11 claims covering
interesting geological context for more graphite mineralization in
the region around the deposit, which is located 40 km north-east of
Ottawa. The Mount Copeland molybdenum deposit lies within
metamorphic rocks flanking the southern margin of Frenchman Cap
Dome, 32 kilometers northwest of Revelstoke, British Columbia (the
"Mount Copeland Property"). The Fort-Eden copper property is
comprised of 18 mineral tenures that total 2,828.6 hectares in
area. The mineral claims are located 100 km west of Fort St. James,
BC (the "Fort Eden Property"). The Red Bird deposit is comprised of
three zones of molybdenum concentration referred to as the Main,
Southeast and Southwest zones within a property totaling 1,836 ha
(4,400 acres) and is located 133 km southwest of Burns Lake and 105
km north of Bella Coola (the "Red Bird Property"). The Company
plans to divest (the "Divestitures") each of the Mount Copeland
Property, the Fort Eden Property and the Red Bird Property through
a sale or joint venture, thus allowing it to focus on building a
graphite mining company. Additionally, Saint Jean expects to
acquire the new lump graphite property in Quebec (the "Clot
Acquisition") and the previously announced new lump graphite
properties in Sri Lanka from Han Tal Graphite (Pvt) Ltd. (the "Han
Acquisition" and together with the Wallingford, Jovite and Clot
Acquisitions, the "Acquisitions") in furtherance of its new
focus.
Neither 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.
FORWARD LOOKING STATEMENTS: This news release
contains forward-looking statements, within the meaning of
applicable securities legislation, concerning Saint Jean's business
and affairs. In certain cases, forward-looking statements can be
identified by the use of words such as "plans", "expects" or "does
not expect", "intends" "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or variations of such words
and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved". Such forward-looking statements include those with
respect the Company's ability to complete Acquisitions and
Divestitures and become a graphite producing company.
These forward-looking statements are based on current
expectations, and are naturally subject to uncertainty and changes
in circumstances that may cause actual results to differ
materially. The forward-looking statements in this news release
assume, inter alia, that the conditions for completion of the
Acquisitions and the Divestitures, including regulatory and
shareholder approvals, if necessary, will be met.
Although Saint Jean believes that the expectations
represented in such forward-looking statements are reasonable,
there can be no assurance that these expectations will prove to be
correct. There are risks which could affect Saint Jean's ability to
complete the Acquisitions and Divestitures, and the future results
of the Company which could cause actual results to differ
materially from those expressed in these forward-looking statements
including negotiation failure or delay, the impact of general
global economic conditions and the risk that they will deteriorate,
industry conditions, including fluctuations in the price of
supplies and the risk that they will increase, that required
consents and approvals from regulatory authorities will not be
obtained, that activity in the lump or vein graphite business will
not be at the level or of the nature anticipated, liabilities and
risks inherent in Saint Jean's operations, technical problems,
equipment failure and construction delay.
Statements of past performance should not be construed as an
indication of future performance. Forward-looking statements
involve significant risks and uncertainties, should not be read as
guarantees of future performance or results, and will not
necessarily be accurate indications of whether or not such results
will be achieved. A number of factors, including those discussed
above, could cause actual results to differ materially from the
results discussed in the forward-looking statements. Any such
forward-looking statements are expressly qualified in their
entirety by this cautionary statement.
All of the forward-looking statements made in this press
release are qualified by these cautionary statements. Readers are
cautioned not to place undue reliance on such forward-looking
statements. Forward-looking information is provided as of the date
of this press release, and Saint Jean assumes no obligation to
update or revise them to reflect new events or circumstances,
except as may be required under applicable securities
laws.
Saint Jean Carbon Inc.Laurie McCarneyDirector of Corporate
Communications(905) 844-1200 ext:
305lmccarney@saintjeancarbon.comwww.saintjeancarbon.com
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