Big North Graphite Closes $200,000 Private Placement and Completes Shares for Debt Transaction
September 13, 2013 (Source: Accesswire) — Big North Graphite Corp. (NRT: TSX-V) (“Big North” or the “Company”) announces that subject to TSX Venture Exchange (the “TSX.V”) acceptance, it has closed an expedited private placement of 2,666,667 units (the “Units”) at $0.075 per Unit for total gross proceeds of $200,000 (the “Offering”).
Each Unit consists of one common share (the “Shares”) and one-half of one non-transferable common share purchase warrant (the “Warrants”). Each whole Warrant is exercisable to acquire an additional common share at $0.12 until September 12, 2015.
Big North intends to use the net proceeds from the Offering for mineral exploration and development of the Company’s amorphous graphite project located in Nuevo San Pedro in Sonora, Mexico and for general working capital purposes.
All securities issued in connection with the Offering will be subject to a four month hold period expiring on January 13, 2014. The Offering remains subject to final acceptance by the TSX.V.
The Company paid commissions and finders’ fees of 8% cash and 8% finder warrants (the Finder Warrants”) in connection with the Offering. The Finder Warrants have the same terms as the Warrants.
The Company also announces the closing of the shares for debt transaction previously announced by the Company on August 19, 2013. The Company has issued 1,092,307 common shares at a deemed price of $0.065 per common share to settle a total of $71,000 of debt owed to an arm’s length creditor.
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The securities issued to the Company’s creditor are subject to a statutory hold period in accordance with applicable securities legislation, which expires on January 4, 2014.
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 3 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 is currently in the Test Mining phase at Nuevo San Pedro.
Recently, Big North announced that the Company had started the assembly of a processing plant that will be used for crushing, screening, sizing and drying of graphite to the specifications of 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 also owns high priority, large flake graphite exploration projects in Ontario and Quebec, Canada.
ON BEHALF OF THE BOARD
(signed) “Spiro Kletas”
President and Chief Executive Officer
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.
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