LEVIS, QUEBEC -- (Marketwire) -- 12/28/12 -- GRANIZ MONDAL INC. (the "Company") (TSX VENTURE: GRA.H) announces that it has been advised by the TSX Venture Exchange that trading in the Company's shares on the NEX will be reinstated, effective the opening December 31, 2012.
This reinstatement follows the TSX Venture Exchange's approval of the Company's acquisition of an option to earn a 75% interest in the Mousseau West graphite property located in Quebec, as well as the Company's completion of the second tranche of a private placement in which it raised a total of $342,600.
Background of Trading Halt, Suspension and Reinstatement on NEX
On September 25, 2012, the NEX announced that trading in Company shares would be suspended because of the Company's failure to submit, by September 20, 2012, the required application and other documents seeking to have trading of Company shares resume as the original reason for the halt in trading was no longer applicable.
Subsequently, the Company prepared and submitted an application to the TSX Venture Exchange for reinstatement, and provided the requested documents and information.
In light of this reinstatement, the Company is issuing this announcement further to its press release of December 21, 2012, so as to provide investors with a comprehensive summary of its acquisition of an interest in the Mousseau West property and the related private placement of securities.
Acquisition of Mousseau West
The Company entered into an option agreement dated December 13, 2012 (the "Option Agreement") for the acquisition of a 75% interest in the Mousseau West graphite property ("Mousseau West") from the current owners of that property: Berthe Lambert (a director of the Company) as to 45%, Richard-Marc Lacasse (an insider of the Company and a former director and President of the Company), as to 45% and Donald Theberge (currently a director and the President of the Company) as to 10% (collectively, the "Vendors").
This acquisition and the related private placement were undertaken to reactivate the Company, but they do not constitute a reverse takeover under the policies of the TSX Venture Exchange and they are not at this time sufficient to allow the Company to graduate to Tier 2 on the TSX-V. Therefore, the Company will remain on the NEX following the completion of these transactions.
The Mousseau West graphite property is comprised of 12 mining claims covering a total of approximately 489 hectares straddling the boundaries of Brunet and Mousseau Townships in Quebec, approximately 12 km north of the town of St-Veronique (near Mont-Laurier) Quebec. The mining claims comprising Mousseau West are identified in Schedule "A" to the Management Information Circular prepared by the Company and sent to shareholders in advance of the Meeting. (A copy of the Management Information Circular may be viewed at www.sedar.com.) The Company's purpose in acquiring an option for an interest in the Mousseau West property is to explore for graphite.
The Option Agreement replaces a letter of intent dated June 26, 2012, which sets out the proposed terms of the acquisition. The Option Agreement is consistent with the letter of intent signed in June, except that the Vendors and the Company have agreed that the payment of $165,000 that would have been payable now will only be payable one year from now, plus interest of 8% per annum. Accordingly, the principal terms of the Company's acquisition of a 75% interest in Mousseau West are as follows:
a. a cash payment of $165,000 plus 8% interest must be paid to the Vendors on or before December 19, 2013;b. 2,000,000 common shares must be issued to the Vendors immediately, pro rata in accordance with their percentage ownership of Mousseau West;c. on or before December 19, 2013, the Company must pay the Vendors $25,000 and issue them 1,000,000 common shares;d. on or before December 20, 2014, the Company must pay the Vendors $25,000 and issue them 1,000,000 common shares; ande. Berthe Lambert and Richard-Marc Lacasse will retain, collectively, a 2% net smelter returns royalty over and with respect to any and all graphite concentrate produced from Mousseau West, subject to the additional condition that the Company will retain a right of first refusal over any proposed sale of that royalty.