Fancamp Completes First Tranche of $4 Million Brokered Financing
FANCAMP EXPLORATION LTD.
7290 Gray Avenue, Burnaby, British Columbia, V5J 3Z2 Telephone: 604-434-8829 Facsimile: 604-434-8823 Web site: www.fancampexplorationltd.ca
NEWS RELEASE
FANCAMP COMPLETES FIRST TRANCHE OF $4 MILLION BROKERED FINANCING
December 22, 2010 TSX Trading Symbol: FNC S.E.C. Exemption: 12(g)3-2(b)
Fancamp Exploration Ltd. (TSX Venture Exchange - FNC): Fancamp Exploration Ltd. (the “Company”) is pleased to announce the completion of the first tranche of the brokered private placement originally announced on December 7, 2010 with Secutor Capital Management Corporation and Industrial Alliance Securities Inc. (collectively, the “Agents”). The Company issued 4,292,647 flow-through units (the “FT Units”) at $0.65 per FT Unit and 600,000 units (“Units”) at $0.52 per Unit for aggregate gross proceeds of approximately $3.1 million (the “Offering”). The Company expects to complete the second tranche of the Offering by issuing 1,080,000 FT Units and 289,000 Units for aggregate gross proceeds of approximately $850,000 by the end of December 2010.
Each FT Unit consists of one common share of the Company, issued as a “flow-through share” within the meaning of the Income Tax Act (Canada) and one-half of one common share purchase Warrant (each whole warrant, a “Warrant”). Each Unit consists of one common share of the Company and one-half of one Warrant. Each whole Warrant entitles the holder to acquire a common share of the Company at a price of $0.90 per share for a period of 18 months following the closing of the Offering, subject to earlier forced acceleration in the event the Company’s shares close at a price of $1.30 per share or more on the TSX Venture Exchange for 20 consecutive trading days after the expiry of a four month hold period.
The Company paid the Agents a cash commission equal to 7% of the gross proceeds of the Offering and issued to the Agents (i) an aggregate number of non-transferrable broker warrants to acquire that number of Units that is equal to 7% of the total number of FT Units sold, exercisable at a price of $0.65 for a period of 18 following closing of the Offering and (ii) an aggregate number of non-transferable broker warrants to acquire that number of Units that is equal to 7% of the total number of Units sold, exercisable at a price of $0.52 for a period of 18 following closing of the Offering.
All of the above securities are subject to a four-month plus one-day hold period expiring April 23, 2011 in accordance with applicable securities laws and stock exchange rules.
The Company will use the proceeds from the sale of the FT Units for exploration on the Company’s mineral properties in Quebec and the proceeds from the sale of the Units for general working capital purposes.
ON BEHALF OF THE BOARD
“Peter H. Smith”, PhD., P.Eng., President
For further corporate information, contact: Peter H. Smith, PhD., P.Eng., President, at 514-481-3172
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.