Fancamp Exploration Ltd.
TSX VENTURE : FNC

Fancamp Exploration Ltd.

March 22, 2011 16:26 ET

Fancamp Closes First Two Tranches of Brokered Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 22, 2011) - Fancamp Exploration Ltd. (TSX VENTURE:FNC) (the "Company") is pleased to announce the completion of the first and second tranches of the previously announced brokered private placement (the "Offering") with Industrial Alliance Securities Inc. and Secutor Capital Management Corporation (collectively, the "Agents"). A total of $8,873,076 was raised through the sale of 1,465,667 units (the "Units") at a price of $0.75 per Unit and 9,717,282 common shares (the "Flow-Through Shares") at a price of $0.80 per Flow-Through Share, issued as a "flow-through share" as defined in subsection 66(15) of the Income Tax Act (Canada).

Each Unit consisted of one common share of the Company and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder to acquire one common share of the Company at a price of $0.90 per common share for a period of two years from the applicable closing dates, subject to earlier forced acceleration in the event the Company's common shares close at a price of $1.75 per share or more on the TSX Venture Exchange for 20 consecutive trading days after the expiry of a four month hold period.

The funds raised from the sale of Flow-Through Shares will be used for exploration of the Company's Quebec properties. The funds raised from the sale of Units will be used for exploration of the Company's Quebec and Ontario properties and for general working capital.

The Company has paid to the Agents, or their sub-agents, an aggregate cash commission equal to 5% of the gross proceeds raised in respect of the Offering and issued to the Agents an aggregate number of non-transferrable compensation options to acquire that number of common shares that was equal to 6% of the total number of Units sold, exercisable at a price of $0.75 per share and $0.80 per share for the number of Flow-Through Shares sold for a period of two years from the applicable closing dates. All securities issued bear resale restrictions until July 22, 2011 (as to 8,574,616 common shares and 616,167 Warrants) or July 23, 2011 (as to 2,608,333 common shares and 166,666 Warrants).

The Company expects to complete a final closing of the Offering later this week.

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 Investor Relations
    Michael D'Amico
    647-500-6023