Agoracom Blog

Focus Graphite Announces the Closing of a $3 Million Bought Deal Flow-Through Share Private Placement

Posted by AGORACOM-JC at 11:40 AM on Thursday, January 31st, 2013

OTTAWA, ONTARIO–(Jan. 31, 2013) –


Focus Graphite Inc. (“Focus Graphite” or the “Company”) (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) announces the closing of a $3 million bought deal flow-through private placement (the “Offering”) previously announced on January 16, 2013. The Offering was completed by Cormark Securities Inc. ( the “Underwriter”).

Pursuant to the Offering, the Company issued a total of 3,300,000 flow-through shares of the Company (the “Flow-Through Shares”) at a price of $0.91 per Flow-Through Share, for total gross proceeds to the Company of $3,003,000.

The proceeds of the Offering will be used to incur eligible Canadian Exploration Expenses, as defined under the Income Tax Act (Canada), on the Corporation’s Lac Knife Graphite Project, and will be renounced in favour of the purchasers with an effective date of no later than December 31, 2013.

“The closing of this offering leaves our company well-positioned to meet our planned 2013 infill and exploration drilling programs at our Lac Knife, Quebec property,” Focus Graphite President and CEO Gary Economo said.

“Again, the market has demonstrated its continuing support for our company’s resources, our management and our business objectives as we move towards anticipated production at Lac Knife,” Mr. Economo added.

In connection with the Offering, the Company paid the Underwriter a fee equal to 6% of the proceeds and issued to the Underwriter a total of 198,000 non transferable broker warrants, each broker warrant entitling the holder thereof to acquire one common share of the Company at a price of $0.91 per share until January 31, 2015.

All securities issued under the Offering are subject to a four (4) month plus one day hold period expiring on June 1, 2013.

The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended (the “Act”), 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.

This News Release may contain or refer to “forward-looking statements” which reflect Management’s expectations regarding the Company’s use of proceeds, future growth, results of operations, performance and business prospects and opportunities. These statements reflect Management’s current beliefs at the time of this news release and are based on information currently available to Management. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding the use of proceeds, potential mineralization and reserves, exploration results, and future plans and objectives of the Company, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Management’s expectations are exploration risks detailed herein and from time to time in the filings made by the Company with securities regulators. While the Company anticipates that subsequent events and developments may cause its views to change, it specifically disclaims any obligation to update these forward-looking statements, except in accordance with applicable securities laws. Accordingly, readers are advised not to place undue reliance on forward-looking information.

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 Information


Gary Economo
President and Chief Executive Officer
613-691-1091, ext. 101
[email protected]

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