VANCOUVER, British Columbia,
May 2, 2012 /PRNewswire/ -- Terra
Firma Resources Inc. (TSX-V: TFR) (the "Company" or "Terra
Firma") announces that it has signed a Mineral Property Option
Agreement (the "Option Agreement") with a group of four prospectors
(the "Vendors") pursuant to which Terra Firma has been granted an
option (the "Option") to earn a 100%-interest in the Lac des
Iles East Graphite Property located in Quebec.
Lac des Iles East Graphite Property:
The Lac des Iles East Graphite Property (the "Property")
consists of 71 claim blocks totalling 3980 Ha and borders the
eastern boundary of the Timcal Lac des Iles property; only 1
kilometer east of TIMCAL's producing Lac des Iles
Mine. TIMCAL's Lac des Iles Mine average grade is 7.5% Cg
(Carbon Graphite) and is one of the only two Graphite producers in
the country and has been in production for over 20 years.
The Lac des Iles East Graphite Property lies within the
same geological environment as the TIMCAL Lac des Iles mine
consisting of quartzofeldspathic rocks, quartzite, biotite gneiss,
marble and locally pegmatitic quartzofeldspathic rocks. Graphite in
the vicinity is present in marbles in contact with quartzite and
biotite gneiss and in shear zones within gneisses where the
graphite content usually ranges from 3% to 10% Cg. The Lac des Iles
East Graphite Property is within three hours of Montreal by road and is easily accessible via
numerous tertiary and forest roads. ** Property maps and details
are available on the Terra Firma website, please click here.
The Company intends to conduct an aggressive exploration
campaign on the Property commencing immediately, with a complete
compilation of historic geologic work followed by an airborne
electromagnetic survey, surface work follow-up, stripping and
trenching and diamond drilling. The exploration program will be
under the supervision of EarthMetrix, a firm specialised in the
field of structural geology, which has supervised over 600 projects
in Canada and abroad for various
mining companies for over 20 years.
R. Brian Buchanan, CEO and
Director of the Company, states: "This latest Quebec acquisition will offer the Company even
more opportunities within the emerging Graphite space. The Lac des
Iles Graphite Property is well located in an attractive mining
jurisdiction with excellent logistics. We are fortunate to add this
asset to our property portfolio and will initiate exploration as
soon as possible."
The Option Agreement:
Pursuant to the terms of the Option Agreement, Terra Firma has
the option to acquire a 100%-interest in the Property by making the
following cash payments on or before the dates indicated below:
|
Cash
|
Shares
|
On
signing
|
$25,000
|
0
|
Within
seven days of TSX Venture Exchange acceptance
|
$50,000
|
750,000
|
Six months
from TSX Venture Exchange acceptance
|
$40,000
|
375,000
|
Eighteen
months from TSX Venture Exchange acceptance
|
$35,000
|
375,000
|
A net smelter royalty "NSR" of 2% shall be payable to the
Vendors on all metals produced from the Property. Terra Firma shall
at any time have the right to buy back one per cent (1%) of the NSR
from the Vendors for one million
dollars ($1,000,000).
A finder's fee will be paid in connection with the transaction
in accordance with the policies permitted by the TSX Venture
Exchange. The transaction is subject to a number of conditions and
approvals, including, but not limited to, required corporate
approvals and TSX Venture Exchange acceptance.
This news release has been reviewed and approved by Alain Moreau, P. Geo., who supervised the
preparation of the technical information in this news release.
Alain Moreau is a Qualified Person
as defined by National Instrument 43-101.
About Graphite:
The commercial market for Graphite is diverse worldwide. The
Graphite industry is experiencing an increase in demand from
numerous industrial sectors, spanning both developing and developed
economies. Traditional uses of Graphite include steelmaking,
electrodes in electric arc furnaces, brake linings, pebble bed
reactor linings, and dry lubricants. There has been an escalation
in the use of Graphite in clean energies such as lithium ion
batteries and fuel cells, which power hybrid and electric vehicles.
The outlook for high-quality Graphite demand is strong due to the
development of new technologies, which use Graphite as an essential
component. The United States,
Europe and China have included graphite among a short
list of critical materials.
About Terra Firma Resources Inc.
Terra Firma is a mineral exploration company and its objective
is to develop a balanced portfolio of properties that exhibit good
mineral indicators for Graphite and Precious Metals, through
a combination of grassroots prospecting, property acquisitions and
the formation of strategic relationships. The Company is currently
investigating a number of potential Graphite prospects. The Company
is currently setting up an exploration program on the
Beidelmann-Lyall Graphite Property in Ontario, Canada. For more information on the
Company and its projects please visit the Terra Firma website
www.terrafirmaresources.com.
For further information please contact: Tom Steer, Investor Communications
Tel: (604) 681-5566 E-mail: tomsteer@terrafirmaresources.com
On Behalf of the Board,
Brian Buchanan, Chief Executive Officer and Director
This Terra Firma News Release contains certain "forward-looking"
statements and information relating to Terra Firma that are based
on the beliefs of Terra Firma's management as well as assumptions
made by and information currently available to Terra Firma's
management. Such statements reflect the current risks,
uncertainties and assumptions related to certain factors including,
without limitation, competitive factors, general economic
conditions, relationships with strategic partners, governmental
regulation and supervision, seasonality, technological change,
changes in industry practices, and one-time events. Should any one
or more of these risks or uncertainties materialize, or should any
underlying assumptions prove incorrect, actual results and
forward-looking statements may vary materially from those described
herein. Except as required by law, Terra Firma does not assume the
obligation to update any forward-looking statement.
Neither the 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 news release.
SOURCE Terra Firma Resources Inc.