Big North Graphite Announces Private Placement of Unsecured Convertible Notes
December 31 2013 - 5:05PM
Access Wire
Vancouver, B.C., December 31, 2013 - Big
North Graphite Corp. (NRT: TSX-V) ("Big
North" or the "Company")
announces a non-brokered private placement (the
"Offering") of up to
$250,000 unsecured convertible notes (the "Notes"). The Notes will have a 12-month
term and will be convertible into units of the Company (the
"Units") at a price of $0.05
per Unit.
Each Unit will
consist of one common share in the capital of the Company (the
"Shares") and one transferable common share purchase warrant (the
"Warrant"). Each Warrant is exercisable to acquire an additional Share
at $0.05 for a period of one year from the date of closing of the
Offering. The Notes will bear interest at 10% per annum,
calculated and paid semi-annually.
Upon conversion of the entire
principal amount of the Notes, any accrued and unpaid interest will
be paid in Shares at a deemed price equal to the greater of (i) the
last closing price of the Shares on the TSX Venture Exchange (the
"TSX-V") (or other Canadian
stock exchange on which the Shares are listed) on the date of the
conversion, and (ii) $0.05 per Share. In the event that only part
of the principal amount of the Notes is converted into Shares, any
accrued and unpaid interest will remain payable on the date of
maturity.
Company President
Spiro Kletas commented, "This capital will allow Big North Graphite
to increase our existing amorphous graphite business in Sonora,
Mexico, complete our processing facility at La Colorada and towards
the acquisition of the El Tejon project."
The Company may pay a finder's fee
on the Offering within the amount permitted by the policies of the
TSX-V. Closing of the Offering is subject to a number of
conditions, including receipt of all necessary corporate and
regulatory approvals, including the TSX-V. All securities issued in
connection with the Offering will be subject to a statutory hold
period of four months plus a day from the date of issuance in
accordance with applicable securities legislation. The net proceeds
from the Offering will be used by the Company for general working
capital.
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 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 and has completed four consecutive months of sales
of amorphous graphite.
Big North has started
the assembly of a processing plant that will be used for crushing,
screening, sizing and drying of amorphous 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. Recently, Big North signed an LOI to acquire the El
Tejon Flake Graphite Mine and Mill in Oaxaca, Mexico. 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 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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