Big North Graphite Corp. (TSXV:NRT) also announced that it’s put its amorphous graphite operation in Sonora, Mexico on hold.
Big North Graphite Corp. (TSXV:NRT) released a corporate update regarding a financing announced in January and its plans for the Mexico-based El Tejon flake graphite mine and mill.
The company also said that it’s put its amorphous graphite operation in Sonora, Mexico on hold. Big North had previously been processing and reselling amorphous graphite from the operation to customers in Mexico.
This is the first update the company has given since Flinders Resources Ltd.’s (TSXV:FDR) acquisition of Big North fell through back in January.
In terms of the financing, Big North said:
Big North Graphite announces that, further to its news releases of January 29, and March 20, 2015, the Company has closed on a total of 1,500,000 common shares at $0.02 per share for aggregate gross proceeds of $30,000, pursuant to a discretionary waiver of the $0.05 minimum pricing requirement granted by the Exchange (the ‘Offering’).
All securities issued in connection with the second tranche of the Offering will be subject to a four month hold period expiring on August 8, 2015, in accordance with applicable Canadian securities laws. Net proceeds from the Offering will be applied towards general working capital purposes. The Offering remains subject to final acceptance by the TSX Venture Exchange.
The El Tejon update is as follows:
In recognition of the vital importance of off-take agreements in the industrial minerals industry, the Company has initiated the process of securing such agreements. A quantity of final bagged graphite product from the previous operation remains on the El Tejon site and, at their request, is being submitted to two potential off take candidates for evaluation and quality assurance purposes. Discussions also continue with several other potential users. It is important to note that the world graphite market has expanded in recent years and the demand for flake graphite continues to grow, driven in part by new, green technologies, including lithium ion batteries that are being used in hybrid and fully electric vehicles that are gaining both in efficiencies and in marketplace acceptance.