Focus Metals Inc.

Focus Metals Inc.

October 05, 2010 08:30 ET

Focus Metals Completes the Acquisition of Lac Knife Graphite Project and Closes a $289,500 Concurrent Private Placement

OTTAWA, ONTARIO--(Marketwire - Oct. 5, 2010) - Focus Metals Inc. ("Focus Metals" or "Corporation") (TSX VENTURE:FMS) is pleased to announce the closing of the acquisition of all of the issued and outstanding shares of 3765351 Canada Inc. ("3765351"), a subsidiary of IAMGOLD and registered owner of the Lac Knife graphite property (see press release of August 19th, 2010), in exchange for (i) a cash payment of $250,000 and (ii) the issuance of 3,956,466 common shares and 1,978,233 warrants of the Corporation, each warrant entitling IAMGOLD to acquire an additional Common Share of Focus at $0.10 until October 4, 2012. Focus Metals has also executed an indemnity agreement in favour of IAMGOLD.

Commenting on the deal, the President and CEO of Focus Metals, Gary Economo, said: "With the acquisition of Lac Knife, Focus Metals now holds properties with two strategically important minerals – graphite at Lac Knife and neodymium at Kwyjibo. Market applications and supply conditions will favour the company in the coming years. These two minerals will be in increasing demand in a high-tech and green economy, where current production and supply are controlled outside of North America. We'll be looking to develop the properties, alone or in partnership, to unlock the value for our shareholders."

Focus Metals is also pleased to announce the closing of a non-brokered private placement (the "Placement") for gross proceeds of $289,500. The Placement consists of the issuance of 2,895,000 units at a price of $0.10 per unit. Each Unit is comprised of one common share and one-half of a warrant. Each whole warrant entitles the holder to purchase an additional common share at a price of $0.15 until October 1, 2012. The securities issued in connection with the Placement are subject to a four-month holding period expiring on February 2, 2011. The proceeds from the Placement will be used to cover the acquisition costs of the Lac Knife project and the Corporation's expenses related thereto. One insider has participated to this private placement for an amount of $25,000.


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. 

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 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

  • Focus Metals Inc.
    Gary Economo
    President and Chief Executive Officer
    613-691-1091 ext. 101