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Berkwood Resources closes project finance deal with Progressive Planet for Lac Gueret South

The terms mean Progressive Planet can earn a 5% interest in the property in exchange for the $250,000 by the end of 2018
Berkwood Resources closes project finance deal with Progressive Planet for Lac Gueret South
The Lac Gueret South is a graphite property

Berkwood Resources Ltd (CVE:BKR) has closed a $250,000 project finance deal with Progressive Planet Solutions Inc (CVE:PLAN) to advance the Lac Gueret South graphite property.

The terms mean Progressive Planet can earn a 5% interest in the property in exchange for the $250,000 by the end of 2018.

READ: Berkwood shares surge 19% as it announces electromagnetic work at Quebec graphite project

"I am very pleased to have Progressive Planet partnered with our near-term advancement of our Lac Gueret South discovery," said Tom Yingling, president and chief executive of 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 PLAN as we prepare to drive the project forward."

During six months, either party will have the right to execute a buyback scenario in which Berkwood would purchase the 5% interest back by issuing to Progressive Planet 1.75 million units in Berkwood.

Each unit will entitle Progressive Planet Solutions to receive one share and one-half warrant.

The  Lac Gueret South project is broadly analogous to the high-grade Mason Graphite deposit.

The project comprises 288 claims which cover a total area of 15,552 hectares.

Three drill programs have been completed to date with 27 holes drilled recovering over 4,000m of drill core. Of the holes drilled, 26 of the 27 had significant graphite intersections.

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