614 0 Kommentare Flinders Resources to Acquire Big North Graphite

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 2, 2014) -

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Flinders Resources Limited ("Flinders") (TSX VENTURE:FDR) and Big North Graphite Corp.("Big North") (TSX VENTURE:NRT) jointly announce that they have entered into a binding letter agreement (the "Letter Agreement") August 29, 2014, under which Flinders will acquire all of the issued and outstanding common shares of Big North by way of a plan of arrangement under the Business Corporations Act (British Columbia) (the "Arrangement"). Upon completion of the Arrangement, Big North will become a wholly-owned subsidiary of Flinders.

Under the terms of the Arrangement Big North shareholders will receive one Flinders common share (a "Flinders Share") for each nine Big North common shares (the "Big North Shares") resulting in the issuance of approximately 9 million Flinders Shares in exchange for 81 million Big North Shares.

Blair Way, President and CEO of Flinders, stated: "I am very pleased to announce this acquisition, as it represents the culmination of an extensive search for an asset that can provide Flinders with the next step in our strategy to build a leading global graphite producer. Our successful restart of the Woxna project in Sweden demonstrates Flinders' expertise which will now be directed towards the restart of the Big North El Tejon project. El Tejon has the capacity to be a long term supplier of high quality flake graphite to the expanding North American market, and provide a sustainable alternative to the current Chinese supply."

Spiro Kletas, President and CEO of Big North, stated: "We are pleased to be joining forces with Flinders and see this business combination as a great opportunity for our shareholders to realize value in the combined assets of Flinders and Big North. We welcome the expertise and experience that the Board and Management of Flinders bring to the partnership. They have proven that they can bring a graphite mine to production and have already 'won the race' to graphite production with the Woxna project in Sweden. Importantly, for all stakeholders, consolidating the assets of the two companies will allow us to accelerate the re-start of El Tejon, adding growth, diversification and future potential for the TSX-V's first flake graphite producer. The Board and Management of the two companies share similar strategies and as such, we believe this combination will be a great fit and mutually beneficial."