AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN Focus Graphite Inc. Announces Bought Deal Private Placement of Flow- Through Shares
January 16, 2013 For 8:30am Release FMS: TSX-VENTURE
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN
Focus Graphite Inc. Announces Bought Deal Private Placement of Flow- Through Shares
OTTAWA, ONTARIO--(Marketwire – January 16, 2013) - Focus Graphite Inc. ("Focus Graphite" or the "Company") (TSX-V:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) is pleased to announce that it has entered into an agreement with Cormark Securities Inc. (the "Underwriter"), pursuant to which the Underwriter has agreed to act as underwriter in connection with the offer and sale of 3,300,000 flow through shares ("Flow-Through Shares") of Focus Graphite (the "Offering") on a private placement basis. The Flow-Through Shares shall be offered at a price of $0.91 per share for aggregate gross proceeds of approximately $3.0 million.
The closing of the Offering is expected to occur on or about February 5, 2013 and is subject to the completion of formal documentation and receipt of regulatory approval, including the approval of the TSXV.
The proceeds of the financing will be used to incur general exploration expenditures that are "flow-through mining expenditures" (CEE), as defined under the Income Tax Act (Canada), that will be renounced in favour of the purchasers with an effective date of no later than December 31, 2013. The funds are intended to be used for in-fill and exploration drilling of Focus Graphite's Lac Knife Graphite Project located in Québec.
The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.
About Focus Graphite
Focus Graphite Inc. is an emerging mid-tier junior mining development company, a technology solutions supplier and a business innovator. Focus is the owner of the Lac Knife graphite deposit located in the Côte-Nord region of northeastern Québec. The Lac Knife project hosts a NI 43-101 compliant Measured and Indicated mineral resource of 4.972 Mt grading 15.7% carbon as crystalline graphite with an additional Inferred mineral resource of 3.000 Mt grading 15.6% crystalline graphite. Focus’ goal is to assume an industry leadership position by becoming a low-cost producer of technology-grade graphite. On October 29th, 2012 the Company released the results of a Preliminary Economic Analysis (“PEA”) of the Lac Knife project which demonstrates that the project has robust economics and excellent potential to become a profitable producer of graphite. As a technology-oriented enterprise with a view to building long-term, sustainable shareholder value, Focus Graphite is also investing in the development of graphene applications and patents through Grafoid Inc.
Forward Looking Statements - Disclaimer
This news release may contain forward looking statements, being statements which are not historical facts, and discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Company's expectations are in our documents filed from time to time with the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com Focus Graphite disclaims any intention or obligation to revise or update such statements.
Neither 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.
Contact:
Mr. Gary Economo
President and Chief Executive Officer 613-691-1091, ext. 101 [email protected] www.focusgraphite.com