Big North Graphite Corp. (
TSX: V.NRT,
Stock Forum) has entered into a share purchase agreement with MAG Exploration Services Inc. and Cesar Javier Guajardo Villarreal (the vendors) to acquire all of the shares of Grafito de Mexico, S.A. de C.V. (Grafito), held by the vendors, representing 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 500 hectares and is comprised of both, the El Tejon flake graphite mine and mill located in the state of Oaxaca, Mexico.
According to the
Big North Graphite press release, pursuant to the terms of the agreement, the company will pay the vendors US$1.7 million and issue 12.5 million common shares.
In addition, the vendors will retain a 3.0% net profits interest royalty with respect to the property.
"We are pleased to report a definitive agreement to acquire the El Tejon project has been reached,” said Spiro Kletas, President and CEO. “The El Tejon project represents near-term flake graphite production and sales potential for Big North.
This aligns with the company's strategy of being one of the first juniors to produce and sell amorphous graphite and now additionally, potential flake graphite to the world market. Our immediate goal is to fast-track this project."
Big North is a graphite development and exploration company focused on select projects in Mexico and Canada.
On Wednesday, Big North was unchanged at $0.065 a share, but the company share price has doubled since mid-December. The company had a market cap of $3.4 million, based on 52.9 million shares outstanding.
FULL DISCLOSURE: Big North Graphite is a Stockhouse Publishing client.