Most of the graphite sold was lower grade amorphous graphite, crushed to minus ¾, the company said.

Big North also stated that all debt associated with the $250,000 of unsecured convertible notes previously issued has been converted.

In August, Flinders Resources has signed a binding letter agreement to acquire all of the common shares of Big North through a plan of arrangement.

Under the deal, the convertible notes are required to be converted as a condition of closing of the deal.

The companies are working to complete due diligence associated with the transaction.

The Sonora project comprises two concessions, the 11.11 hectare Nuevo San Pedro concession and the 144.60 hectare Akiwiki concession.

Nuevo San Pedro project operated from 1996 to 2002. It is underlain by non-marine, brackish and shallow marine clastic sediments and coal or graphite of the Triassic Barranca Formation.

The Akiwiki concession is underlain by the Barranca Formation units.