Big North options Quebec Graphite-Sillimanite Property from Zimtu, Partners for $80K, 3M Shares, $500K Expenditures, 2% Royalty
Big North Graphite Corp TSXV:NRT announced an option with Zimtu Capital Corp TSXV:ZC and three of its prospecting partners to earn a 100% interest in the Grand Lac du Nord Graphite Property in east Quebec. Under the agreement, Big North pays $40,000 on signing and $40,000 on TSXV acceptance. The company also pays Zimtu and its three prospecting partners a total of 1.5 million shares within five days of TSXV acceptance, 500,000 shares six months after TSXV acceptance, 500,000 shares 12 months after TSXV acceptance and 500,000 shares 14 months after TSXV acceptance. Big North must also spend $150,000 on the property within 12 months of TSXV acceptance and an additional $350,000 within 15 months of TSXV acceptance. If Big North files a resource estimate within seven years of TSXV acceptance showing at least 200,000 tonnes of graphite content at a cutoff of 5% carbon, or the equivalent in value for sillimanite (an aluminum silicate used in refractories, abrasives, ceramics and non-slip flooring), Big North will pay the optionors an additional $200,000 and two million shares. The optionors retain a 2% net milling royalty, 1% of which Big North may buy for $1 million.
The 2,009-hectare property is 140 kilometres from Sept-Îles and is accessible by paved and logging roads. The property was explored previously by SOQUEM Inc after an airborne electromagnetic survey found anomalies. Ground work in 2000 and 2001 identified a high-grade sillimanite formation. The presence of graphite was also noted visually. Big North plans to begin exploration by compiling historic work and performing surface work, trenching and diamond drilling. The target is described as an open-pittable, crystalline flake-graphite deposit similar to other Quebec deposits such as Focus Metals’ TSXV:FMS Lac Knife Project and Timcal Graphite & Carbon’s Lac-des-Îles Graphite Mine.
We have two properties with great geology; and I think we’ve positioned the company in a good space right now—Spiro Kletas
Big North President/CEO Spiro Kletas tells ResourceClips.com, “The property was previously explored by SOQUEM for sillimanite, but they saw graphite, and didn’t want to bother with it.
“We have a commitment to do $150,000 worth of work in the first year, and we’re going to start right away upon [TSXV] exchange approval. The same goes for our [Griffith and Brougham graphite properties] in Ontario. There are early-stage projects, and then there are near-term projects like Flinders TSXV:FDR, Northern Graphite TSXV:NGC and Focus Metals TSXV:FMS. But there’s a bit of a vacuum in projects in the middle. We want to be leaders in the exploration and development of graphite, so to do that we want to press ahead as aggressively as we can and move the projects forward as quickly as we can,” he explains.
“The Quebec project has already had some work done. The fact that there’s been visual confirmation at surface and from trenching that SOQUEM did makes it pretty exciting. But we’re going to do the initial work program on both projects and take it from there,” Kletas says.
“As far as other possible acquisitions go, I would never say no to anything that makes sense to the company and shareholders. I always keep my eyes open for anything that can add value for the shareholders. But these two projects should keep us pretty busy for the short or medium term.”
Kletas concludes, “We’re very excited. We’re in two very good jurisdictions; we have two properties with great geology; and I think we’ve positioned the company in a good space right now. We’re looking forward to getting work started on the properties.”
Big North Graphite Corp
Zimtu Capital Corp
by Greg Klein