Sunday 25th September 2016

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Big North signs LOI with Zimtu on 2 Ontario Graphite Properties for $80K, 2M shares, 2% NMR

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Update: Effective April 9, 2012, Big North Capital Inc changed its name to Big North Graphite Corp TSXV:NRT.

Zimtu Capital Corp TSXV:ZC announced a letter of intent in which Big North Capital Inc TSXV:NRT may earn a 100% interest in the Griffith and Brougham graphite properties in southern Ontario. The 6,500-hectare package is prospective for high-quality, large-flake graphite in a region that includes Ontario Graphite’s Kearney Mine and Northern Graphite’s TSXV:NGC Bissett Creek Project.

Under the agreement Big North will pay Zimtu $20,000 on signing, $20,000 and 500,000 common shares on TSXV acceptance, 250,000 shares 14 months after TSXV acceptance and 250,000 shares 24 months after TSXV acceptance. Zimtu’s two prospecting partners will together receive cash and shares equal to that of Zimtu. The vendors will collectively retain a 2% net milling royalty, 1% of which can be purchased by Big North for $1 million.

Big North President Spiro Kletas tells ResourceClips.com, “I specifically like these properties for their location. There’s historic graphite showings, and I think it’s good value for our shareholders and provides significant upside potential in the medium and long term.

I think it’s good value for our shareholders and provides significant upside potential in the medium and long term—Spiro Kletas

“We’re going to start work with an aero-magnetic survey and try to locate targets. Then we’ll follow up with some field work and, pending success there, drilling in the summer. So we plan to aggressively explore these properties in the near future.”

He adds, “We also have a Quebec gold exploration project called the Luciana Property. We’re just working out a field exploration program. We have a 43-101 technical report on that, and we’re going to do some work based on suggestions from the geologist who did the report.

“I’m quite excited about the graphite field,” Kletas says. “I think the fundamentals moving forward are quite strong. It’s a large and growing market. Graphite prices have been increasing over the last months and over the last couple of years, specifically for large-flake, high-purity graphite. I think the driving force for the graphite market are the new applications that are coming out for it, batteries, fuel cells and so on.

“And considering that China is the biggest producer, and they’ve imposed new export taxes and a licensing system for exporting graphite, it restricts the supply, which raises prices,” he points out.

“Graphite hasn’t really been at the forefront for exploration companies for close to 30 years. There was a lag in developing new projects, and then there’s a supply crunch. That creates a huge demand because there’s nothing in the pipeline. With gold, for example, there are lots of gold companies and lots of projects that are along their way to production. But with graphite, because there hasn’t been much exploration development for the last 30 years, there’s been a lag in exploration and production. So I think there will be a larger and larger demand for graphite.”

Kletas concludes, “As a company, I think we’re in good shape. There are very few shares out, and we have over a million dollars in the bank. So we’re able to finance the first couple of steps of the exploration stage without having to go back to the market. We’re quite excited about the prospects for the company moving forward.”

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Contact:
Zimtu Capital Corp
Kevin Bottomley
Shareholder Services
877.377.6222
604.681.1568

Disclaimer: Zimtu Capital Corp is a client of OnPage Media and the principals of OnPage Media may hold shares in Zimtu.

by Greg Klein

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