OTTAWA, ONTARIO--(Marketwired - Jan. 31, 2014) - The Board of Directors of Focus Graphite Inc., (TSX VENTURE:FMS) (OTCQX:FCSMF) (FRANKFURT:FKC) (the "Company" or "Corporation") announced today its approval to convert CAN$1,500,000 in financing to Grafoid Inc. ("Grafoid") to 3,000,000 common shares in Grafoid at $0.50 per share.
On May 3rd 2012, at the Corporation's annual meeting, disinterested shareholders of the Corporation passed a resolution to approve the participation of the Corporation in Grafoid Inc. enabling the Corporation to fulfill its commitment to provide Grafoid with CAN$1,500,000 funding.
Grafoid recently closed an overallotment financing with Blackwall Capital Markets Inc. at U.S$0.50 per share and a "Friends and Family" private placement at CAN$0.50 per share in Canada. The equity financings set the fair value of the shares for the conversion of the loan into Grafoid shares.
The Board deemed the conversion to be in the best interest of the Corporation's shareholders considering Grafoid's near term prospects.
Corporation Chairman Jeffrey York and Chief Executive Officer Gary Economo are related parties to the transaction and as such, declared their conflict of interest and were excluded from participation in the Board's decision.
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 Estimate of 9.6 million tonnes grading 14.77% graphitic carbon with an additional Inferred Resource of 3.1 million tonnes grading at 13.25 % 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 Assessment ("PEA") of the Lac Knife Project which indicated that the project has a very good potential to become a graphite producer. As a technology-oriented enterprise with a view to building long-term, sustainable shareholder value, Focus also invests in the development of graphene applications and patents through Grafoid Inc.
Don Baxter, P. Eng., Focus President & Chief Operating Officer, a Qualified Person as defined by NI 43-101 guidelines, has reviewed and approved the technical content of this news release.
About Grafoid Inc.
Grafoid Inc. is a privately held Canadian corporation investing in graphene applications and processes for the economically scalable production of high-energy density and high-purity bilayer and trilayer MesoGraf™ graphene and MesoGraf™ derivatives from raw, unprocessed, graphite ore. Grafoid's global platform, its facilities in Canada, the United States and elsewhere and its key industrial development partners contribute to its aims of assuming an industry leadership position in graphene's commercialization. Focus Graphite Inc. (TSX VENTURE:FMS) (OTCQX:FCSMF) (FRANKFURT:FKC) holds an interest in Grafoid on behalf of its shareholders.
Forward Looking Statement
This news release contains "forward-looking information" within the meaning of Canadian securities legislation. All information contained herein that is not clearly historical in nature may constitute forward-looking information. Generally, such forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: (i) volatile stock price; (ii) the general global markets and economic conditions; (iii) the possibility of write-downs and impairments; (iv) the risk associated with exploration, development and operations of mineral deposits; (v) the risk associated with establishing title to mineral properties and assets; (vi)the risks associated with entering into joint ventures; (vii) fluctuations in commodity prices; (viii) the risks associated with uninsurable risks arising during the course of exploration, development and production; (ix) competition faced by the resulting Company in securing experienced personnel and financing; (x) access to adequate infrastructure to support mining, processing, development and exploration activities; (xi) the risks associated with changes in the mining regulatory regime governing the resulting Company; (xii) the risks associated with the various environmental regulations the resulting Company is subject to; (xiii) risks related to regulatory and permitting delays; (xiv) risks related to potential conflicts of interest; (xv) the reliance on key personnel; (xvi) liquidity risks; (xvii) the risk of potential dilution through the issue of common shares; (xviii) the Company does not anticipate declaring dividends in the near term; (xix) the risk of litigation; and (xx) risk management. Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made, including but not limited to, continued exploration activities, no material adverse change in metal prices, exploration and development plans proceeding in accordance with plans and such plans achieving their stated expected outcomes, receipt of required regulatory approvals, and such other assumptions and factors as set out herein.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Such forward-looking information has been provided for the purpose of assisting investors in understanding the Company's business, operations and exploration plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is made as of the date of this news release, and the Company does not undertake to update such forward-looking information except in accordance with applicable securities laws.