Big North Graphite (TSXV:NRT), together with Flinders Resources Limited (TSXV:FDR) have entered a binding letter of intent whereby Flinders will acquire all issued and outstanding shares of Big North via a plan of arrangement under the Business Corporations Act of British Columbia. Big North will become a 100 percent owned subsidiary of Flinders upon completion of the arrangement.
As quoted in the press release:
Under the terms of the Arrangement Big North shareholders will receive one Flinders common share (a “Flinders Share”) for each nine Big North common shares (the “Big North Shares”) resulting in the issuance of approximately 9 million Flinders Shares in exchange for 81 million Big North Shares.
Big North president and CEO, Spiro Kletas, said:
We are pleased to be joining forces with Flinders and see this business combination as a great opportunity for our shareholders to realize value in the combined assets of Flinders and Big North. We welcome the expertise and experience that the Board and Management of Flinders bring to the partnership. They have proven that they can bring a graphite mine to production and have already “won the race” to graphite production with the Woxna project in Sweden. Importantly, for all stakeholders, consolidating the assets of the two companies will allow us to accelerate the re-start of El Tejon, adding growth, diversification and future potential for the TSX-V’s first flake graphite producer. The Board and Management of the two companies share similar strategies and as such, we believe this combination will be a great fit and mutually beneficial.