Alabama Graphite Corp. (CNSX:ALP) entered into an agreement to acquire a 100% interest in the Hearst Graphite Project, owned by Benton Resources Inc. (TSXV:BEX). The project is located near Zenyatta Ventures Ltd’s Albany hydrothermal graphite discovery in Northern Ontario.
As quoted in the press release:
Benton originally targeted these claims based on a search of historical exploration data from the region. A geophysical study conducted by Noranda Exploration Company in December of 1987, included both ground magnetic and horizontal loop electromagnetic (HLEM) surveys. Several HLEM conductors were identified by this survey, but the conductors on the acquired claim units were associated with magnetic lows. Noranda concluded at the time that these conductors were most likely due to graphite mineralization.
In exchange for 100% interest in the Hearst Graphite Project, Benton will receive 2 million shares of Alabama Graphite and a cash payment of $8,000. In addition, Benton will retain a 2% NSR on the project which may be reduced by 1% on payment of $1million.
Alabama Graphite Corp. CEO, Dan Spine, said:
We are very excited to have acquired the Hearst Graphite Project in such a prospective graphite district in Canada. We intend to test the targets identified by Noranda in the next drilling season.