Focus Metals Inc.
TSX VENTURE : FMS
OTCQX : FCSMF
FRANKFURT : FKC

Focus Metals Inc.

March 14, 2012 11:06 ET

Focus Metals Announces the Closing of a $10 Million Bought Deal Flow-Through Share Private Placement

OTTAWA, ONTARIO--(Marketwire - March 14, 2012) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN

Focus Metals Inc. ("Focus Metals" or the "Company") (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) announces the closing of a $10 million bought deal flow-through private placement (the "Offering") previously announced on February 23, 2012. The Offering was completed by a syndicate of underwriters led by Cormark Securities Inc., and included Byron Capital Markets Ltd. (collectively, the "Underwriters").

Pursuant to the Offering, the Company issued a total of 7,693,000 flow-through shares of the Company (the "Flow-Through Shares") at a price of $1.30 per Flow-Through Share (which includes the exercise in full of the Underwriters' option to offer for purchase and sale an additional 2,693,000 Flow-Through Shares), for total gross proceeds to the Company of $10 million.

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, the Kwyjibo Project and the Corporation's other properties located in Quebec, and will be renounced in favour of the purchasers with an effective date of no later than December 31, 2012.

Focus Metals President and CEO Gary Economo said the Offering leaves the Company well-positioned to meet its 2012 expansionary, exploration and discovery drilling objectives at its Lac Knife and Kwyjibo, Quebec properties.

"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 by late 2013," Mr. Economo said.

In connection with the Offering, the Company paid the Underwriters a fee equal to 6% of the proceeds and issued to the Underwriters a total of 461,580 non transferable broker warrants, each broker warrant entitling the holder thereof to acquire one common share of the Company at a price of $1.30 per share until March 14, 2014.

All securities issued under the Offering are subject to a four (4) month plus one day hold period expiring on July 15, 2012.

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 Metals Inc.

Focus Metals Inc. is an emerging mid-tier junior mining exploration company with excellent discovery stage base metals and industrial minerals opportunities in Quebec. The Company intends also to acquire advance stage industrial minerals exploration properties in its portfolio in the future. The Company is led by a determined management and technical team with extensive exploration and mine production experience.

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
    Focus Metals Inc.
    613-691-1091 Ext.101
    gary@focusmetals.ca