Uragold and Bolero Resources have entered into a non-binding term sheet to negotiate a final definitive agreement regarding the sale the Asbury graphite mine claims owned by Uragold.

The Asbury property located in Notre-Dame-du-Laus, 60km south of Mont-Laurier, Quebec consists of two claims, which holds the former Asbury Graphite Mine.

Once the definitive agreement is signed Bolero will acquire Uragold’s Asbury mining claims and related assets for an amount equal to 5 million common shares of Bolero.

Uragold president and COO Patrick Levasseur said combining the company’s Asbury property with Bolero’s graphite properties, technical team, and management will be an outstanding opportunity.

"Bolero is doing all the right steps to become a major graphite player," Levasseur added.

"This transaction generates significant value to Uragold’s shareholders while allowing us to focus our on developing our gold projects."

Bolero, as per the agreement, will have to contribute an initial amount of C$30,000 ($30,211) to UBR and pay C$70,000 ($70,493) within 30 days of the signed term sheet.

On the closure of the transaction the company will pay C$200,000 ($201,410) and a yearly royalty of 0.75% on the net production cost for 10 years.