Apr 11, 2012 — Vancouver, B.C., April 11, 2012 – BIG NORTH GRAPHITE CORP. CA:NRT 0.00% (the “Company†or “Big Northâ€) is pleased to announce that it has signed a Mineral Property Option Agreement (the “Option Agreementâ€) with Zimtu Capital Corp. (“Zimtuâ€) CA:ZC -0.76% and three of Zimtu’s prospecting partners (collectively, the “Optionorsâ€) pursuant to which Big North has been granted an option (the “Optionâ€) to earn a 100%-interest in the Grand Lac du Nord Graphite Property located in eastern Quebec.
Grand Lac du Nord Property:
The Grand Lac du Nord Property (the “Propertyâ€) consists of one contiguous claim block totaling approximately 2,009 hectares (20.09 km2) located approximately 140 kilometers northwest of Sept-Iles, Quebec. The property is accessible via paved and logging roads.
The Property was previously explored by SOQUEM, Inc. following up on airborne electromagnetic (EM) anomalies. Ground work in 2000 and 2001 identified a high grade sillimanite formation. The presence of graphite over the property was also noted visually but not given any focus at the time.
The Property contains a graphitic paragneiss formation approximately 8 kilometres in length by 1 to 2 km wide. The formation is composed of quartz, graphite, biotite and sulphides. The sulphides are in veinlets or disseminated in the paragneiss while the graphite is in disseminated flakes. A second formation parallel with the above consists of a sillimanite paragneiss band, also 8 km in length with a width of about 1 to 2 km. This horizon composed of quartz-feldspars, sillimanite, graphite, biotite, garnet and cordierite. The formation is intercalated with bands of quartzite.
Property maps will be posted on the Company’s website at: http://www.bignorthgraphite.com/
The Company intends to mount an exploration campaign on the Property commencing with a complete compilation of historic geologic work followed by surface work, trenching and diamond drilling. The exploration target is an open-pittable, crystalline flake graphite deposit similar to other graphite deposits and mines in Quebec such as Focus Metals Inc.’s CA:FMS -2.75% Lac Knife Deposit and Timcal Graphite and Carbon’s Lac des Iles Mine.
The Option Agreement
Pursuant to the terms of the Option Agreement, Big North may acquire a 100%-interest in the Property by:
(i) on or before the dates indicated below, making the following cash payments:
---------------------------------------------------------------
|Date |Cash Payment |
|-------------------------------------------------------------|
|Upon signing the letter of intent |$40,000 (which payment has|
| |been made) |
|-------------------------------------------------------------|
|Upon TSX Venture Exchange (aEURoeTSXVaEUR)|$40,000 |
|acceptance of the | |
|Option Agreement | |
|(the aEURoeEffective DateaEUR) | |
|-------------------------------------------------------------|
|Total: |$80,000 |
---------------------------------------------------------------
(ii) on or before the dates indicated below, issuing to the Optionors, an aggregate of 3,000,000 Big North common shares:
-----------------------------------------------------------
|Date |Number of Shares|
|---------------------------------------------------------|
|Within five days of the Effective Date |1,500,000 |
|---------------------------------------------------------|
|Six months after the Effective Date |500,000 |
|---------------------------------------------------------|
|Twelve months after the Effective Date |500,000 |
|---------------------------------------------------------|
|Fourteen months after the Effective Date|500,000 |
|---------------------------------------------------------|
|Total: |3,000,000 |
-----------------------------------------------------------
(iii) on or before the dates indicated below, making the following expenditures on the Property:
-------------------------------------------------------------------
|Date |Amount of Expenditure|
|-----------------------------------------------------------------|
|Within twelve months of the Effective Date |$150,000 |
|-----------------------------------------------------------------|
|Within fifteen months of the Effective Date|$350,000 |
|-----------------------------------------------------------------|
|Total: |$500,000 |
-------------------------------------------------------------------
In addition, if, at any time within seven years of the Effective Date, Big North files a NI 43-101 compliant resource (in any category pursuant to CIMM standards) with 200,000 tonnes or more of graphite content (at a cut-off of 5% Cgr) or the equivalent in sillimanite at a ratio of 5 for 1, Big North will pay to the Optionors additional cash consideration of $200,000 and will issue 2,000,000 Shares to the Optionors. The Optionors will retain a 2% Net Milling Royalty on the Property, 1% of which can be purchased by Big North for $1,000,000 at any time.
The Optionors and Big North are arm’s length parties as defined by TSXV policy. A finder’s fee may be paid in connection with the transaction up to the maximum permitted by the policies of the TSXV. The transaction is subject to a number of conditions and approvals, including, but not limited to, required corporate approvals and TSXV acceptance. There can be no assurance that the transaction will be completed as proposed or at all.
Jean-Sebastien Lavallee (OGQ #773), geologist, a Qualified Person as defined by National Instrument 43-101, independent of Big North, and an Optionor of the Property, has reviewed and approved the technical content of this release.
For further information concerning this press release, please contact Spiro Kletas at (604) 629-8220.
ON BEHALF OF THE BOARD
“Spiro Kletas†Spiro Kletas 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.
Tags: #graphitestocks, #mining, #smallcapstocks, $TSXV, Big North Graphite