Northern Graphite (OTCQB:NGPHF) intends to exercise its option to acquire a 100% interest in the Mousseau West graphite project.
The project is located ~80 kms from, and within economic trucking distance of, the company's producing Lac-des-Iles ("LDI") graphite mine in Quebec.
The company can acquire Mousseau West through the payment of $500K in cash and the issuance of 900K shares, subject to the acceptance of the TSX Venture Exchange.
The company also has the right to acquire a 2% net smelter royalty retained by the owners at any time upon the payment of $1M.