Fancamp Exploration Ltd.
TSX VENTURE : FNC

Fancamp Exploration Ltd.

August 26, 2010 17:00 ET

Fancamp Announces Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 26, 2010) - Fancamp Exploration Ltd. (TSX VENTURE:FNC) (the "Company") wishes to announce a new financing of up to $1,500,000 through the sale of 3,000,000 flow-through units (the "FT Units") at $0.50 per FT Unit. Each FT Unit will consist of one flow-through common share, and one-half of one non flow-through share purchase warrant (the "Warrants"). Each whole Warrant will be exercisable to acquire one additional common share at a price of $0.75 per share for two years from the closing date, subject to earlier forced acceleration in the event the Company's shares close at a price of $1.00 per share or more for 30 consecutive trading days. There is an additional offering of up to $250,000 through the sale of 555,555 non flow-through units (the "NFT Units") at $0.45 per NFT Unit. Each NFT Unit will consist of one common share, and one common share purchase warrant (the "Warrants"). Each Warrant will be exercisable to acquire one additional common share at a price of $0.75 per share for two years from the closing date, subject to earlier forced acceleration in the event the Company's shares close at a price of $1.00 per share or more for 30 consecutive trading days.

The Company will pay finder's fees of 5% in cash and 10% in Finder's Options to certain eligible arm's length finders, in relation to this financing, all in accordance with regulatory policies.

These funds will contribute substantially to the Company's cash requirements to maintain its 17.5% working interest in the current joint venture agreement with Champion Minerals Inc. (Champion) in the Mount Wright-Fermont Iron District of Quebec, where Champion has earned and purchased a total 82.5% interest in 17 separate Iron properties from Fancamp and its partner The Sheridan Platinum Group Ltd., who together retain an underlying 3% Net Smelter Returns royalty of which 1% may be bought back for $3.0M. Two of these properties, the Harvey Tuttle and the Fire Lake North are the subject of Champion's current exploration programme which is well underway. Champion intends to complete 8,855 metres of drilling on the Harvey Tuttle property with the objective of achieving a minimum resource target of 500M tonnes grading in excess of 30% iron. The Fire Lake North property, where Champion intends to complete 15,000 metres of drilling, has an objective of achieving a minimum resource target of 600-700M tonnes grading in excess of 30% iron. This work will include metallurgical testing and preliminary scoping studies. The current total exploration budget outlined by Champion is estimated to be $9,400,000, to be spent by December 31st 2010. Fancamp is responsible for contributing 17.5% of these expenses in order to maintain its proportionate interest in the project.

It is worth noting in this context that Fancamp and Sheridan remain the 50/50 owners of the Lamellee South Iron Property located in the immediate vicinity of Harvey Tuttle. This property, which has never been drilled, hosts extensive magnetite/hematite iron formation with a Bloom Lake scale airborne magnetic signature. Champion Minerals retain a right of first refusal on the property.

In addition, the Company plans further deep drilling on its McFauld's Ni/PGM/VMS/Chromite Property this fall. This property has been the subject of recent exploration which provided additional valuable information on the mineralized structures.

The Company is also continuing its ongoing exploration programmes on its Stoke and Clinton gold-VMS properties, the Beauce gold property, and its Red Paint Lake/Norway Lake properties adjoining the Brett Resources 6.7M oz gold property in northwestern Ontario. The results of these exploration activities will be reported as soon as they are available.

ON BEHALF OF THE BOARD

Peter H. Smith, PhD., P.Eng., President

S.E.C. Exemption: 12(g)3-2(b)

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.

Contact Information

  • Fancamp Exploration Ltd.
    Peter H. Smith, PhD., P.Eng.
    President
    514-481-3172
    www.fancampexplorationltd.ca
    or
    Bay Street Connect
    Michael D'Amico
    Investor Relations
    647-500-6023