Vancouver, B.C. / ACCESSWIRE /
May 22 2014 / BIG NORTH GRAPHITE CORP. (TSX-V: NRT) (OTC:
BNCIF) (the "Company"
or "Big North"), is pleased
to announce that further to the Company's press releases of
December 19, 2013 and February 5, 2014, pursuant to a share
purchase agreement (the "Agreement") with MAG Exploration
Services Inc. and Cesar Javier Guajardo Villarreal (together, the
"Vendors"), the Company has
acquired all of the shares of Grafito de Mexico, S.A. de C.V.
("Grafito"), held by the
Vendors (which shares represent 97.5% of the issued and outstanding
share capital of Grafito). Grafito is the registered and beneficial
owner of the El Tejon property.
The El Tejon property is a 500
hectare property and consists of the El Tejon flake graphite mine
and mill (the "El Tejon
Property"). The El Tejon Property is located in the state of
Oaxaca, Mexico approximately 38 kilometers northwest of the City of
Oaxaca, in the town of San Francisco Telixtlahuaca. The El Tejon is
a past producing flake graphite mine that operated from 1980 to
2002 when, due to graphite prices, they discontinued operation.
Big North President & CEO Spiro
Kletas commented, "In announcing the closing of this acquisition,
we are looking forward to fast-tracking the addition of flake
graphite production and sales to Big North with the El Tejon
Project. It is the Company's goal to be one of the first TSX
Venture listed companies to produce and supply flake graphite to
market."
Pursuant to the terms of the
Agreement, Big North acquired all of the issued and outstanding
shares held by the Vendors in Grafito by paying US$1,700,000 and
issuing 12,500,000 common shares to the Vendors as follows:
-US$30,000 upon signing the
LOI as a non-refundable deposit (which payment has been
made);
-US$30,000 within 5 business
days of signing the Agreement (which payment has been
made);
-US$90,000 upon the 6 month
year anniversary of signing the Agreement;
-US$100,000 upon the 12 month
year anniversary of signing the Agreement;
-US$100,000 upon the 18 month
year anniversary of signing the Agreement;
-US$125,000 upon the 24 month
year anniversary of signing the Agreement;
-US$125,000 upon the 30 month
anniversary of signing the Agreement;
-US$150,000 upon the 36 month
year anniversary of signing the Agreement;
-US$150,000 upon the 42 month
year anniversary of signing the Agreement;
-US$400,000 upon the 48 month
year anniversary of signing the Agreement;
-US$400,000 upon the 60 month
year anniversary of signing the Agreement;
-5,000,000 common shares
within 5 business days of TSX Venture Exchange
("TSXV")
approval of the Agreement (the "Effective Date"); and
-7,500,000 Big North Shares on
the 12-month anniversary of the Effective Date.
In addition, the Vendors will retain
a 3% net profits interest royalty with respect to the El Tejon
Property.
The Company will pay a finder's fee
of 3,089,970 common shares to MJI Management Corp. in connection
with the Transaction, conditional upon the Company maintaining the
Agreement.
Further details regarding the El
Tejon Property can be found in the Company's December 19, 2013 and
February 5, 2014 press releases. Further information about the El
Tejon Property will be posted on the Company's website at
http://www.bignorthgraphite.com.
Further to the Company's press
release of February 28, 2014, the Company has filed an amended
National Instrument 43-101 technical report dated April 10, 2014
with respect to the El Tejon Property. The technical report was
prepared by R. Tim Henneberry, P. Eng., an independent "qualified
person" as defined by National Instrument 43-101 and is available
on SEDAR under the Company's profile.
About Big North
Graphite Corp.
Big North is a graphite
development and exploration company focused on select projects in
Mexico and Canada. The Company acquired three past producing
amorphous graphite mines in Sonora, Mexico and has completed sales
of amorphous graphite totaling 1163 tons to date.
Big North Graphite recently
announced the acquisition of the past producing El Tejon flake
graphite mine and mill in Oaxaca, Mexico. Big North is poised to
capitalize on the increasing strategic demand for graphite
throughout the world, a demand that is being driven by the growth
in new, green technologies including the lithium ion batteries that
are being used in hybrid and fully electric vehicles.
Big North also owns high priority,
large flake graphite exploration projects in Ontario and Quebec,
Canada.
For further information please contact Spiro Kletas at (604)
629-8220.
ON BEHALF OF THE BOARD
(signed) "Spiro
Kletas"
Spiro
Kletas
President and Chief Executive
Officer
Facebook: https://www.facebook.com/bignorthgraphite
Twitter: https://twitter.com/NRTgraphite
YouTube: http://www.youtube.com/bignorthgraphite
Flicker: http://www.flickr.com/photos/bignorthgraphite
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 release.
Except for historical information
contained herein, this news release contains forward-looking
statements that involve risks and uncertainties. Actual results may
differ materially. Except as required pursuant to applicable
securities laws, the Company will not update these forward-looking
statements to reflect events or circumstances after the date
hereof. More detailed information about potential factors that
could affect financial results is included in the documents filed
from time to time with the Canadian securities regulatory
authorities by the Company.
SOURCE: BIG NORTH GRAPHITE CORP.
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