Vancouver, B.C., NOV 20, 2012 - BIG NORTH GRAPHITE CORP. (TSX-V: NRT) (the "Company" or "Big North"), is pleased to announce that further to its press release dated September 10, 2012, it has signed a Definitive Mineral Property Option Agreement (the "Option Agreement") with Can-Am Gold Corp. (the "Vendor") to acquire all of the issued and outstanding shares of Grafito La Barranca SA de CV ("Grafito"), held by the Vendor (which shares represent 99.9% of the issued and outstanding share capital of Grafito). Grafito is the registered and beneficial owner of two mining concessions located in Sonora, Mexico, which encompass the past producing Nuevo San Pedro, Caraples and La Fortuna amorphous graphite mines.
Grafito holds a 100% interest in the Aki Wiki concession ("Aki Wiki") and has a 50/50 joint venture on the Nuevo San Pedro property ("Nuevo San Pedro", and together with Aki Wiki, the "Property"), a past producing amorphous graphite mine which is currently being re-opened. Both concessions are located in the San Jose de Moradillas region, a region that has produced graphite for more than 145 years. San Jose de Moradillas is located approximately 45 kilometers southwest of the city of Hermosillo, Mexico.
Big North Graphite President & CEO Spiro Kletas states, "We are very pleased to announce the close of the Grafito la Baranca acquisition. The projects are in the mining friendly state of Sonora, Mexico and have great infrastructure and access. The San Jose de Moradillas region has a rich history of amorphous graphite production. The company intends to help accelerate the re-start of the Nuevo San Pedro mine, along with our JV partner, and we intend to produce amorphous graphite in the near future. The Company's goal is to be amongst the first TSX Venture Exchange (the "TSX.V") companies to produce graphite and we believe that this acquisition puts us in line to accomplish this goal."
Further details regarding the Property can be found in the Company's Sept 10, 2012 press release. Maps of the Property will be posted on the Company's website at: http://www.bignorthgraphite.com/.
The Option Agreement
Pursuant to the terms of the Definitive Agreement, Big North will acquire 100% of the interests held by the Vendor in the Property by acquiring all of the issued and outstanding shares held by the Vendor in Grafito by making the following payments and issuing the following common shares to the Vendor:
-US$25,000 upon signing the LOI as a non-refundable deposit; ?(PAID)
-US$25,000 upon signing of the Definitive agreement
-US$150,000 and 1.2 million shares of Big North Graphite within 5 business days of TSX.V approval ("Effective Date")
-On or before the 6 month anniversary of the Effective Date, issue the vendor an additional 500,000 shares of Big North Graphite
-On or before the first anniversary of the Effective Date, issue the vendor an additional 500,000 shares of Big North Graphtite.
The Vendor and Big North are arm's length parties as defined by the policies of the TSX Venture Exchange (the "TSXV"). A finder's fee of $20,000 CDN will be paid in connection with this Transaction as permitted by the policies of the TSX.V, and is subject to TSX.V approval.
The Transaction is subject to TSXV approval.
For further information concerning this press release, please contact Spiro Kletas at (604) 629-8220.
ON BEHALF OF THE BOARD
President and Chief Executive Officer
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.