Rouyn-Noranda, QC, Oct. 19, 2020 /CNW Telbec/ – Fokus Mining Corporation (“Fokus”) is pleased to announce that it has closed its previously-announced private placement by issuing 12,500,000 units (the “Units”) at a price of $0.40 per Unit, for gross proceeds to Fokus of $5,000,000. Each Unit is comprised of one “flow-through” common share and one-half of a common share purchase warrant. Each whole warrant entitles the holder to acquire one additional common share of Fokus at a price of $0.45 until October 16, 2023.
PowerOne Capital Markets Limited acted as lead “finder” in connection with the private placement. A 7% cash finder’s fee was paid together with the issuance of finder warrants equal to 7% of the Units issued in the private placement. Each finder warrant can be exercised to acquire one Unit as offered in the private placement at a price of $0.40 until October 16, 2023.
The proceeds from the private placement will be used by Fokus for exploration on certain of its mining exploration properties located in Quebec, with most of the proceeds to be allocated primarily to the Galloway gold project located 30 km west of Rouyn-Noranda, Quebec. Two drill rigs should be in place next week to begin the 40,000 meters of the diamond drilling program before the end of October.
The Galloway project hosts several gold bearing occurrences of which three of those mineralized showings have been drilled over the years and the results clearly justify this new drilling program. Other mineralized showings in the same sector that have not yet been drill tested are included in the program (see Fokus’ press release dated September 9, 2020 for more information on this significant drilling campaign on the Galloway gold project).
Mr. Jean Rainville, President and CEO commented: “I’m pleased with the strong interest in this financing which positioned the company in a solid way and I’m thrilled to kick off the 40,000 meters drilling program on this highly prospective Galloway project. We expect to deliver interesting results regularly before the end of the 2020 calendar year”.
As a result of the closing of the private placement, there are 60,466,373 common shares of Fokus issued and outstanding on a non-diluted basis. Under applicable securities legislation and the policies of the TSX Venture Exchange, the securities issued in the private placement are subject to a four-month hold period, expiring on February 17, 2021.
About Fokus Mining
Fokus Mining is a mineral resource company actively exploring in Québec on acquiring and exploring precious metals deposits located in the province of Québec.
Except for historical information, this news release may contain certain “forward looking statements”, including those relating to the diamond drilling program on the Galloway gold project. These statements may involve a number of known and unknown risks and uncertainties and other factors that may cause the actual results to be materially different from the expectations and projections of Fokus. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, including the exploration programs and development (including any diamond drilling programs) on the Galloway gold project or other exploration properties of Fokus, or if it does so, what benefits Fokus will derive therefrom. A more detailed discussion of the risks inherent in Fokus’ business is available in documents filed by Fokus on SEDAR at www.sedar.com. Unless otherwise stated, all forward-looking statements in this news release speak only as of the date of this news release and Fokus does not have any obligation to update such statements, except to the extent required by applicable securities laws.
The TSX Venture Exchange and its Regulation Services Provider (as that term is defined in the TSX Venture Exchange Policies) do not accept any responsibility for the truth or accuracy of its content.
For more information, please contact:
President & Chief Executive Officer
Tel.: (514) 918-3125
Fax: (819) 762-0097
About Fokus Mining
We are a mineral resource company actively acquiring and exploring precious metal deposits located in the province of Quebec. In implementing this major undertaking within the Canadian mining industry, we are determined to develop the full potential of the opportunity presented by the Galloway project and its Golden Triangle.