Focus Graphite Inc. Closes Second Tranche of Financing with Alumina Partners
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Focus Graphite Inc. Closes Second Tranche of Financing with Alumina Partners
KINGSTON, ONTARIO, December 23, 2021 – Focus Graphite Inc. (TSXV: FMS) (the “Company”
or “ Focus Graphite ”) announced today it has closed a second tranche under the previously
announced equity financing facility (the “Equity Financing Facility”) with Alumina Partners
(Ontario) Ltd. (“Alumina”), an affiliate of New York-based private equity firm Alumina Partners,
LLC.
In the second tranche under the Equity Financing Facility, the Company completed a private
placement for gross proceeds of $200,000 from Alumina, with Alumina receiving 3,137,254 units
of the Company consisting of a common share priced at $0.06375 per share and warrants to
purchase 1,568,627 common shares, exercisable at $0.10625 per share for 36 months.
The Equity Financing Facility will provide the Company with up to $12.0 million over a 24-month
period for working capital and general corporate purposes. Under the Equity Financing Facility,
the Company may, subject to certain conditions, restrictions and acceptance by Alumina, raise
funds through private placements in tranches of up to $500,000. Each tranche shall be a private
placement of units, to be comprised on one common share and one-half of a common share
purchase warrant, which will be exercisable for 36 months. The units will be issued at a discount
of 25% of the closing market price at the time of each tranche, and the warrants will be issued at
a 25% premium over the closing market price at the time of each tranche.
There are no standby charges or other upfront fees associated with the Equity Financing Facility.
Each tranche of units issued under the Equity Financing Facility will be subject to the acceptance
of the TSX Venture Exchange, and the securities issued will be subject to the customary 4-month
hold period.
In other news, Focus is pleased to report that on December 2, 2021, the Company received a first
post-closing instalment payment in the amount of $500,000, paid in cash and shares of Mont
Royal Resources Ltd., an Australian mining company (ASX: MRZ) per the terms of (a) the Mineral
Property Acquisition agreement (“MPA Agreement”) entered into on July 6, 2020, with Konkera
Holdings Pty Ltd (“Konkera”), an Australian proprietary limited company regarding Focus’
Eastmain-Léran/Alta Option and Eastmain-Léran/Staked gold and base metals properties
Québec; and (b) the assignment agreement (“Letter Deed Agreement”) between the Company
and Konkera dated May 7, 2021, whereby the Company agreed to assign Konkera’s obligations
under the MPA Agreement to a subsidiary of Northern Lights Minerals Pty Ltd., an Australian
proprietary limited company.
The payment of the Post-Closing Instalment follows Mont Royal Resources‘ announcement on
December 1, 2021, that it had acquired a 75% interest in Northern Lights Minerals Pty Ltd, an
Australian proprietary limited company with mining claims (held by a Canadian subsidiary) and
the rights to acquire a significant land package of further mining claims (Acquisition Assets) in the
Upper Eastmain Greenstone of eastern Eeyou Istchee Baie-James Territory, northern Québec.
Focus’ Eastmain-Léran/Alta Option and Eastmain-Léran/Staked properties are included in
Northern Lights Minerals’ Acquisition Assets.
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The Company agreed to receive thirty percent (30%) of said the $500,000 payment by accepting
shares of Mont Royal Resources Ltd. as consideration representing $150,000 of the partial
payment and 70% to be paid in cash representing $350,000 which as wired to the Corporation’s
bank account.
About Focus Graphite
Focus Graphite Inc. is an advanced exploration company with an objective of producing flake
graphite concentrate at its wholly owned Lac Knife and Lac Tétépisca flake graphite projects
located in the Côte-Nord administrative region of Québec. In a second stage, to meet Québec
stakeholder interests in developing second transformation industries within the province and to
add shareholder value, Focus is evaluating the feasibility of producing value added specialty
graphite products including battery-grade spherical graphite.
Focus Graphite is a technology-oriented graphite development company with a vision for building
long-term, sustainable shareholder value. Focus also holds a significant equity position in
graphene applications developer Grafoid Inc.
For more information about Focus Graphite, please visit www.focusgraphite.com.
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.
Forward Looking Information
This news release may contain certain forward-looking information and statements, including
without limitation, the closing of any private placements, statements pertaining to the use of
proceeds, and the Company’s ability to obtain necessary approvals from the TSX Venture
Exchange. All statements included herein, other than statements of historical fact, are forward-
looking information and such information involves various risks and uncertainties. There can be
no assurance that such information will prove to be accurate, and actual results and future events
could differ materially from those anticipated in such information. A description of assumptions
used to develop such forward-looking information and a description of risk factors that may cause
actual results to differ materially from forward-looking information can be found in Focus
Graphite’s disclosure documents on the SEDAR website at www.sedar.com. The Company does
not undertake to update any forward-looking information except in accordance with applicable
securities laws.
Contact:
Kimberly Darlington, Communications, Focus Graphite
Judith Mazvihwa-Maclean CFO, Focus Graphite
(613) 581-4040