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Flinders Resources Ltd. (TSXV:FDR) and Big North Graphite Corp. (TSXV:NRT) announced that they have agreed to extend to November 3, 2014 the due diligence period regarding their recently announced binding letter agreement.
As quoted in the press release:
The extension is necessary as additional time is required to finalize key due diligence matters and enter into a definitive agreement.
Under the Letter Agreement, Flinders will acquire all of the issued and outstanding common shares of Big North by way of a plan of arrangement under the Business Corporations Act (British Columbia) (the ‘Arrangement’). Upon completion of the Arrangement, Big North will become a wholly-owned subsidiary of Flinders.
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.
The Arrangement is subject to standard closing conditions for a transaction of this nature including, without limitation, receipt of all required shareholder, court and regulatory approvals.
The Arrangement may be terminated by either party if closing has not occurred by December 31, 2014, or such later date as the parties mutually agree.
Click here to read the full Flinders Resources Ltd. (TSXV:FDR) and Big North Graphite Corp. (TSXV:NRT) press release.
Click here to view the Big North Graphite Corp. (TSXV:NRT) profile.