Focus Metals Inc.
TSX VENTURE : FMS

Focus Metals Inc.

December 23, 2010 15:57 ET

Focus Metals Closes Private Placement

OTTAWA, ONTARIO--(Marketwire - Dec. 23, 2010) - Focus Metals Inc. ("Focus Metals" or "Company")(TSX VENTURE:FMS) announces the closing of a non-brokered private placement (the "Placement") for gross proceeds of $ 1,250,000 (see Focus Metals news release of December 17, 2010). The placement consisted of the issuance of 5,000,000 units (the "Units") at a price of $0.25 per unit. Each Unit is comprised of one common share of the Company and one-half of a share purchase warrant ("warrant"). Each whole warrant entitles the holder to purchase one additional common share of the Company at a price of $0.35 until December 23, 2012. 

In connection with the Placement, the Company paid a cash finder's fee to eligible parties totalling $ 90,360 and issued, as additional consideration, 400,000 non-transferable warrants entitling the holder to acquire the same number of common shares of the Company at a price of $0.25 per common share for the private placement for a period of twenty-four (24) months expiring December 23, 2012.

All securities issued in the Placement will be subject to a four month hold period expiring on April 24, 2011. Proceeds will be used to fund the Company's exploration activities and general corporate expenses.

Commenting on the closing, the CEO of Focus Metals, Gary Economo, said: "The closing of this financing round takes Focus Metals another step forward in its development. We are positioning the Company to grow around strategic minerals: graphite and neodymium. Both minerals are in their infancy in importance to a high-tech and green economy and we want to be ready to take advantage of the opportunities. The financing strengthens our balance sheet for the development of our Lac Knife graphite property and other possible strategic acquisitions in 2011. Over the course of the next year, we hope to maximize the investment opportunity for our shareholders. Studies are now underway at Lac Knife that will set the stage to develop the graphite mine as quickly as possible to meet increased global demand."

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. A determined management team with extensive mining business experience lead the Corporation. 

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