Focus Metals Inc.
TSX VENTURE : FMS

Focus Metals Inc.

May 12, 2011 10:57 ET

Focus Metals Closes $20 Million Bought Deal Private Placement

OTTAWA, ONTARIO--(Marketwire - May 12, 2011) -

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. (TSX VENTURE:FMS) (the "Company") is pleased to announce the closing of the $20 million bought deal private placement (the "Offering") previously announced on April 15, 2011. The Offering was completed by a syndicate of underwriters led by Cormark Securities Inc., and included Byron Capital Markets Ltd. and Desjardins Securities Inc. (collectively, the "Underwriters").

Under the terms of the Offering, the Underwriters purchased 15,000,000 units of the Company (the "Units") at a price of $1.00 per Unit and exercised their option to acquire an additional 5,000,000 Units at the same price, for gross proceeds to the Company of $20 million.

Each Unit consists of one common share of the Company and one-half of one common share purchase warrant. Each whole warrant is exercisable at any time for one common share at a price of $1.25 per common share until May 13, 2013.

The net proceeds of the offering will be used by the Company for drilling, completion of the NI 43-101 compliant resource estimate and scoping study and procurement of long lead items at the Lac Knife Graphite Project, potential acquisitions, working capital and general corporate purposes.

In connection with the offering, the Company paid the Underwriters a total fee of $1,200,000, equal to 6% of the funds raised, and issued to the Underwriters, as additional compensation, a total of 1,200,000 non transferable broker warrants, each broker warrant entitling the holder thereof to acquire the same number of Units at a price of $1.00 per Unit until May 13, 2013.

All securities issued under the Offering are subject to a four (4) month plus one day hold period expiring on September 13, 2011.

The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.

Profile:

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 Corporation intends also to acquire advance stage industrial minerals exploration properties in its portfolio in the future. The Corporation 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 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 use of proceeds, 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

  • Focus Metals Inc.
    Gary Economo
    President and Chief Executive Officer
    613-691-1091 Ext.101
    gary@focusmetals.ca