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Big North Graphite (TSXV:NRT) has entered into a share purchase agreement with MAG Exploration Services Inc. and Cesar Javier Guajardo Villarreal to acquire all of the shares of Grafito de Mexico, S.A. de C.V., held by the Vendors (which shares represent 97.5% of the issued and outstanding share capital of Grafito). Grafito is the registered and beneficial owner of the El Tejon property.
As quoted in the press release:
Pursuant to the terms of the Agreement, Big North will acquire 100% of the interests held by the Vendors in the El Tejon Property by acquiring all of the issued and outstanding shares held by the Vendors in Grafito by paying US$1,700,000 and issuing 12,500,000 common shares to the Vendors as follows:
- US$30,000 upon signing the LOI as a non-refundable deposit (which payment has been made);
- US$30,000 within 5 business days of signing the Agreement;
- US$90,000 upon the 6 month year anniversary of signing the Agreement;
- US$100,000 upon the 12 month year anniversary of signing the Agreement;
- US$100,000 upon the 18 month year anniversary of signing the Agreement;
- US$125,000 upon the 24 month year anniversary of signing the Agreement;
- US$125,000 upon the 30 month anniversary of signing the Agreement;
- US$150,000 upon the 36 month year anniversary of signing the Agreement;
- US$150,000 upon the 42 month year anniversary of signing the Agreement;
- US$400,000 upon the 48 month year anniversary of signing the Agreement;
- US$400,000 upon the 60 month year anniversary of signing the Agreement;
- 5,000,000 common shares within 5 business days of TSX Venture Exchange (“TSXV”) approval of the Agreement (the “Effective Date”); and
- 7,500,000 Big North Shares on the 12 month anniversary of the Effective Date.
In addition, the Vendors will retain a 3% net profits interest royalty with respect to the El Tejon Property.
Big North President & CEO Spiro Kletas said:
We are pleased to report a definitive agreement to acquire the El Tejon project has been reached. 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.
Click here to read the Big North Graphite (TSXV:NRT) press release
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