May 22, 2014 (ACCESSWIRE via COMTEX) — Vancouver, B.C. / ACCESSWIRE / May 22 2014 / BIG NORTH GRAPHITE CORP. /quotes/zigman/9483086/realtime CA:NRT 0.00% /quotes/zigman/9534096/delayed/quotes/nls/bncif BNCIF 0.00% (the “Company” or “Big North”), is pleased to announce that further to the Company’s press releases of December 19, 2013 and February 5, 2014, pursuant to a share purchase agreement (the “Agreement”) with MAG Exploration Services Inc. and Cesar Javier Guajardo Villarreal (together, the “Vendors”), the Company has acquired all of the shares of Grafito de Mexico, S.A. de C.V. (“Grafito”), held by the Vendors (which shares represent 97.5% of the issued and outstanding share capital of Grafito). Grafito is the registered and beneficial owner of the El Tejon property.

The El Tejon property is a 500 hectare property and consists of the El Tejon flake graphite mine and mill (the “El Tejon Property”). The El Tejon Property is located in the state of Oaxaca, Mexico approximately 38 kilometers northwest of the City of Oaxaca, in the town of San Francisco Telixtlahuaca. The El Tejon is a past producing flake graphite mine that operated from 1980 to 2002 when, due to graphite prices, they discontinued operation.

Big North President & CEO Spiro Kletas commented, “In announcing the closing of this acquisition, we are looking forward to fast-tracking the addition of flake graphite production and sales to Big North with the El Tejon Project. It is the Company’s goal to be one of the first TSX Venture listed companies to produce and supply flake graphite to market.”

Pursuant to the terms of the Agreement, Big North acquired all of the issued and outstanding shares held by the Vendors in Grafito by paying US$1,700,000 and issuing 12,500,000 common shares to the Vendors as follows:

-US$30,000 upon signing the LOI as a non-refundable deposit (which payment has been made);

-US$30,000 within 5 business days of signing the Agreement (which payment has been made);

-US$90,000 upon the 6 month year anniversary of signing the Agreement;

-US$100,000 upon the 12 month year anniversary of signing the Agreement;

-US$100,000 upon the 18 month year anniversary of signing the Agreement;

-US$125,000 upon the 24 month year anniversary of signing the Agreement;

-US$125,000 upon the 30 month anniversary of signing the Agreement;

-US$150,000 upon the 36 month year anniversary of signing the Agreement;

-US$150,000 upon the 42 month year anniversary of signing the Agreement;

-US$400,000 upon the 48 month year anniversary of signing the Agreement;

-US$400,000 upon the 60 month year anniversary of signing the Agreement;

-5,000,000 common shares within 5 business days of TSX Venture Exchange (“TSXV”) approval of the Agreement (the “Effective Date”); and

-7,500,000 Big North Shares on the 12-month anniversary of the Effective Date.

In addition, the Vendors will retain a 3% net profits interest royalty with respect to the El Tejon Property.