Big North Capital Inc. Enters into Letter of Intent to Option Griffith and Brougham Graphite Properties in Southern Ontario

03/15/2012 08:58 AM ET

 

Mar 15, 2012 (ACCESSWIRE-TNW via COMTEX News Network) -- Vancouver, B.C., March 15, 2012 - BIG NORTH CAPITAL INC. (TSX-V: NRT)
(the "Company" or "Big North"), announced today
that the Company has signed a letter of intent to option approximately
6,500 hectares in southern Ontario prospective for graphite
exploration. Property highlights include:

-Approximate6,500-hectare land position in central southeastern
Ontario

-Area of well-established access and infrastructure

-Close to major end-use markets: United States and Europe

-Other companies with active development projects in the region
include Northern Graphite Corp. (Bissett Creek) and Ontario Graphite
Ltd. (Kearney).

The property consists of two approximately equal-size claim blocks in
Lyndoch-Griffith and Brougham Townships, respectively, that total
approximately 6,500-hectares located about 140 kilometres south of
Ottawa. The claim blocks, known as the Griffith Graphite Property and
the Brougham Graphite Property (together, the "Property"),
contain or adjoin numerous historical graphite occurrences. The
Property is located in an area of well-established access and
infrastructure.

The Property covers substantial tracts of graphite-prospective
Grenville-age marble+/-gneiss geology and are unexplored for graphite
using modern technology. The Brougham Graphite Property is anchored by
two historic graphite occurrences (based on Ontario Geological Survey
maps from the 1970's) to the southeast. The Griffith Graphite Property
covers a large area of favourable geology with the historic
Little-Bryan and Beidelman-Lyall graphite occurrences to the
west/south respectively and a marble quarry with reported graphite to
the east. Hosted by gneisses, the historic Little-Bryan graphite
occurrence is currently being explored by Standard Graphite Corp.

There is currently a considerable amount of graphite exploration
activity in the Grenville geologic province of southern Ontario. The
Grenville province is characterized by a suite of Precambrian-age,
high grade metamorphic rocks that by virtue of their initial
carbon-bearing composition and metamorphic and deformation history,
are prospective for graphite, particularly the coarse flake variety.
Two of the most advanced projects in the region are those of Northern
Graphite Corp. at their Bissett Creek Deposit and Ontario Graphite
Ltd. (private) at their Kearney Deposit.

Letter of Intent

Big North has entered into a letter of intent with Zimtu Capital Corp.
("Zimtu") (TSX-V: ZC) and two of Zimtu's prospecting
partners (collectively, the "Vendors") with respect to an
option to earn a 100% interest in the Property. Pursuant to the terms
of the letter of intent Big North will earn an undivided 100% interest
in the Property by making the following payments and issuing the
following common shares to the Vendors:

-$40,000 upon signing the letter agreement;

-$40,000 and 1,000,000 common shares in the capital of Big North upon
TSX Venture Exchange acceptance of the definitive agreement for the
transaction (the "Effective Date");

-500,000 common shares in the capital of Big North on or before the 14
month anniversary of the Effective Date; and

-500,000 common shares in the capital of Big North on or before the 24
month anniversary of the Effective Date.

The Vendors and Big North are arm's length parties as defined by TSX
Venture Exchange ("TSX-V") policy. The Vendors will retain
a 2% Net Milling Royalty on the Property, 1% of which can be purchased
by Big North for C$1-million. A finder's fee may be paid in connection
with this transaction up to the maximum permitted by the policies of
the TSX-V. The transaction is subject to a number of conditions and
approvals, including, but not limited to, satisfactory due diligence,
settlement of a definitive agreement, required corporate approvals and
TSX-V approval. There can be no assurance that the transaction will
be completed as proposed or at all.

Mr. Bill Brereton, P.Eng, a qualified person as defined by National
Instrument 43-101, and independent of Big North, supervised the
preparation and has approved the technical information in this news
release.

For further information please contact Spiro Kletas at (604) 723-0710.

ON BEHALF OF THE BOARD

(signed) "Spiro Kletas"
Spiro Kletas
President, Chief Executive Officer and a Director