UBR News! Deal for Asbury Graphite mine deal

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TrueCanuck

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UBR News! Deal for Asbury Graphite mine deal

posted on Aug 09, 2012 05:32PM

UBR has a term sheet agreement for the Asbury Graphite property with Bolero Resources!

http://tmx.quotemedia.com/article.php?newsid=53409417&qm_symbol=BRU

Bolero Enters Into A Term Sheet With Uragold to Acquire the Asbury Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 9, 2012) - Bolero Resources Corp. (the "Company" or "Bolero"), (TSX VENTURE:BRU), (FRANKFURT:U7N1) (PINKSHEETS:BRUZF) is pleased to announce that it has entered into a non-binding term sheet ("Term Sheet") with Uragold Bay Resources Inc. ("Ur agold" or "UBR") to negotiate a definitive agreemen t (the "Agreement") for the purchase of UBR's "Asbury" min ing claims. Uragold's shares trade on the TSX Venture Exchange under the symbol "UBR".

Under the Term Sheet, Bolero is required to make an initial contribution of $30,000CDN to UBR and a second cash payment of $70,000 CDN within thirty days of the signed Term Sheet. Upon closing of the transaction, Bolero will be required to make a further payment of $200,000 CDN and pay a yearly royalty of 0.75% on the net production cost for a period of 10 years after the start of graphite production.

Subject to completion of final due diligence, Bolero and UBR will enter into a definitive agreement for the acquisition of the Asbury mining claims ("Claims") held by UBR. As consideration for the transfer and sale of the Claims and related assets, on completion of the transaction Bolero will issue to Uragold 5,000,000 common shares.

Paul Ogilvie, CEO of Bolero said, "Our goal to own a number of former producing mines, is starting to become a reality - I'm very pleased with the planned acquisition of the Asbury mine. The Asbury property supplied graphite to a number of customers in the past, this is significant to us because it indicates the graphite should have customer acceptance in the market, and will speed up the process to receive supply agreements. Our team is in place and we're excited to start the engineering process for the property".

The company is working on several other acquisitions of former producing properties, and hopes that over the next couple of months, they can enter into term sheets to acquire two or three more.

The transaction is also subject to receipt by Bolero of the approval of the TSX Venture Exchange.

......................................................................................................................................

My Notes:

UBR managed to move forward both the gold and graphite properties ahead and increased shareholder value with this deal.

1 - The graphite property, which UBR purchased for just 50K in cash (and 250K in shares) five months ago, has today been leveraged into $300K in cash and 5M shares (about $500K in shares) of a company, Bolero Resources, better positioned to develop the graphite mine.

2 - The cash infusion ($300K) of this deal will help move forward with Beauce gold property without shareholder dilution.

3- UBR's share position of 5M in Bolero will increase UBR shareholder value as Bolero moves the Asbury Graphite mine towards production.

IMO this is a win/win for UBR and shareholders.

-TC

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