TORONTO (miningweekly.com) – TSX-V-listed Caribou King Resources has received a nod of approval from the stock exchange to proceed with an option to acquire an initial 63% of the Aukam graphite mine, located on 38 850 ha, in southern Namibia, where owner Next Graphite had started testing lump graphite for quality and purity, following the conclusion of a bulk sampling programme.

Caribou explained in a statement this week that, under terms of the deal, it would issue 3.5-million shares to arms-length vendors and committed to spend up to $1.1-million over 18 months, with the first year’s cash commitment being about $125 000.

The shares would be issued upon closing of the transaction and the first 25% would be released four months from the date on which Caribou had received all necessary approvals (trigger date). Then another 25% would be released in eight months from the trigger date, the next 25% in 12 months and the final 25% 16 months from the trigger date.

The Aukam property hosted three underground adits that were mined periodically between 1940 and 1974 and produced a recorded 26 740 t of lump graphite.

A programme to obtain a 25 t bulk sample of graphite from one of three existing adits at Aukam had recently been completed. The high-quality, vein-type graphite (also known as lump graphite) extracted during the bulk-sampling programme is now being tested for quality and purity. The test would further define the characteristics of the material and its suitability for value-added manufacturing applications.

Aukam graphite was hosted within a shear zone in which underground mine workings still showed well-mineralised structures that were believed to continue down-dip.

"We are very excited to add this strategic acquisition to our existing portfolio of solid exploration properties, as it expands Caribou's presence globally and brings the company a producible, existing mine. Through acquisitions and exploration, Caribou's goal is to expand beyond being solely a mining exploration business and to become a major, integrated global mining company in the graphite space,” CEO and director Michael England said.

The Aukam mine was connected to existing infrastructure, with access to the site possible throughout the year. The site was relatively close to a main tar road and the national power grid passed 2 km from the property. Water was available in large amounts from underground aquifers, with an old pumpstation at the foot of the mountain, which previously supplied mine operations.

Meanwhile, Caribou King had started a large-scale exploration programme at its 100%-owned Buckingham property, in southern Quebec.

The two-phase exploration programme launched earlier this month was aimed at capturing enough data to plan an efficient drilling campaign. Under Phase 1, a ground-based electromagnetic survey would be conducted over about 75% of the property, while Phase 2 would involve a detailed mapping and sampling campaign across the entire property.