Big North Announces Private Placement and Amends Option Agreement
June 6, 2013 — Vancouver, B.C (Source: Big North Graphite Corp) — Big North Graphite Corp. (“Big North” or the “Company”) (TSXV: NRT), is pleased to announce that it intends to complete a non-brokered private placement of up to 8,000,000 units (the “Units”) at a price of $0.05 per Unit, for gross proceeds of up to $400,000 (the “Offering”). Each Unit will consist of one common share (a “Share”) and one common share purchase warrant (a “Warrant”). Each Warrant will entitle the holder thereof to purchase one Share at an exercise price of $0.10 for a period of two years following the closing of the Offering.
Completion of the Offering is subject to receipt of all regulatory approvals, including the approval of the TSX Venture Exchange (the “TSXV”). All securities issued pursuant to the Offering will be subject to a statutory four month hold period.
Net proceeds from the Offering will be applied towards advancement of the Company’s Grafito La Barranca properties, including the re-start of the Nuevo San Pedro mine in Sonora, Mexico and for general working capital purposes.
In connection with the Private Placement, Big North may, subject to regulatory acceptance, pay a finder’s fee to certain arm’s length parties on the proceeds raised.
None of the securities issued in connection with the Offering will be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Grand Lac du Nord Property
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Big North further announces that the Company has entered into an amending agreement dated May 21, 2013 (the “Amending Agreement”) to the mineral property option agreement dated April 10, 2012 (the “Option Agreement”) in respect of the Grand Lac du Nord Graphite Property located in eastern Quebec, which was originally announced in the Company’s news release of April 11, 2012.
Under the terms of the Amending Agreement, the parties have agreed to amend the Option Agreement to provide that the $500,000 exploration expenditures are now required to be made on or before October 31, 2014. The other conditions of exercise of the option under the Option Agreement remain unchanged.
The Company intends to focus its resources on its Grafito La Barranca Properties.
About Big North Graphite Corp.
Big North is a graphite development and exploration company focused on select projects in Mexico and Canada. The Company recently acquired three past producing amorphous graphite mines in Sonora, Mexico and is working towards accelerating the restart of the Nuevo San Pedro amorphous graphite mine. Big North has recently completed two phases ofthe restart of the Nuevo San Pedro mine, which includes the delivery of equipment, clean up of access roads, installation of electricity and
ventilation systems, receipt of permits to use dynamite to blast at the mine and the stabilization and repair of the existing workings.
Recently, the Company announced that it has started the assembly of a processing plant that will be used for stockpiling, crushing, screening,sizing and drying of graphite to the specifications of individual future customers. Further, the Company has commenced a strategy of buying unprocessed amorphous graphite from local miners who do not possess the ability to process or ship to end users. Big North plans to
purchase graphite from local producers to supplement production from the Nuevo San Pedro project. The Company plans to process the purchased graphite to the specifications of future customers and re-sell the purchased graphite at market prices, capturing the difference in prices. 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”
President and Chief Executive Officer
While Big North intends to re-start the Nuevo San Pedro mine, the Company has not established mineral resources and has not completed a valid mining study (as defined by NI 43-101) to support a production decision. Historically, a production decision under these circumstances results in much higher economic or technical risk. Furthermore, without a pre-feasibility or feasibility study and a graphite reserve, there can be no assurance that operations at Nuevo San Pedro will be profitable.
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 thedocuments filed from time to time with the Canadian securities
regulatory authorities by the Company.
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>