Fokus Mining Corporation (TSX-V: FKM) (FSE: F7E1) is pleased to announce that it has closed a non-brokered private placement by issuing 8,392,857 units at a price of $0.14 per Unit, for gross proceeds to Fokus of $1,175,000. Each Unit is comprised of one common share and one-half of a common share purchase warrant. Each whole warrant entitles the holder to acquire one additional common share of Fokus at a price of $0.20 until July 5, 2023. Fokus will use the net proceeds from the private placement for exploration on its mining properties located in the Province of Québec and for working capital purposes.
Jean Rainville CEO and President of Fokus states: “Fokus has sufficient funding to carry its exploration program for several months but needed funding for expenditures such as certain environmental or metallurgical studies that will be required at some point and do not qualify as exploration expenditures.
In connection with the private placement, Fokus paid cash finders’ fee to three securities dealers in the aggregate amount of $61,910. In addition, Fokus issued finders’ warrants to the securities dealers entitling them to acquire up to an aggregate of 442,217 additional common shares of Fokus at a price of $0.14 per share until July 5, 2023.
Two officers and directors of Fokus and two directors of Fokus (collectively, the “Insiders”) purchased, directly and indirectly, an aggregate of 721,286 Units for a total consideration of $100,980. The issuance of Units to the Insiders constitutes related party transactions but they are exempt from the formal valuation and minority approval requirements of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”) as Fokus’ securities are not listed on any stock exchange identified in Section 5.5(b) of MI 61-101 and neither the fair market value of the Units issued to the Insiders, nor the fair market value of the entire private placement, exceeds 25% of Fokus’ market capitalization. Fokus did not file a material change report with respect to the participation of the Insiders at least 21 days prior to the closing of the private placement as the Insiders participation was not determined at that time.
As a result of the private placement, there are 70,802,087 common shares of Fokus issued and outstanding on a non-diluted basis. Under applicable securities legislation and the policies of the TSX Venture Exchange, the securities issued in the private placement are subject to a four-month hold period, expiring on November 6, 2021.
Fokus Mining Corporation is a mineral resource company actively acquiring and exploring precious metal deposits located in the province of Québec, Canada. In implementing this major undertaking within the Canadian mining industry, we are determined to unlock the secret of the Galloway gold project.
The Galloway project covers an area of 2,865.54 hectares and is located just north of the Cadillac-Larder Lake deformation which extends laterally for more than 100 km. Numerous gold deposits are related to that structure and its subsidiaries. The current work focuses on a small western portion of the mineral claims where several mineral occurrences have been identified. For more information, visit our website: www.fokusmining.com.
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We acknowledge the [financial] support of the Government of Canada.