Focus Graphite Sells Its 100% Interest in the Eastmain-L?(C)ran Project, Eastern Eeyou Istchee James Bay Territory, Qu?(C)bec
KINGSTON, Ontario, July 22, 2020 (GLOBE NEWSWIRE) -- Focus Graphite Inc. (“Focus” or the "Company") (TSX-V: FMS; OTCQX: FCSMF; FSE: FKC), an advanced exploration company aspiring to become a producer of high purity flake graphite concentrate from its flagship Lac Knife graphite project in Québec, today announced that the Company (the “Vendor”) has signed the definitive asset purchase agreement (the “Agreement”) for the sale of its 100% interest in the Eastmain-Léran project to a third party (the “Purchaser”). The transaction closed on July 16, 2020 and the initial payment of $500,000 due at closing has been received.
The Eastmain-Léran project (the “Project”) is comprised of two contiguous properties located in eastern Eeyou Istchee James Bay territory of northern Québec, 37 km southeast of Stornoway Diamonds (Canada) Inc.’s Renard diamond mine, and 10 km to the East of the Otish Mountains access road (HWY 167 North): The Eastmain-Léran/Alta Option property which consist of 32 map-designated (“CDC”) claims covering an area of 1,678.81 ha and the Eastmain-Léran/Staked property consists of 505 CDC claims covering an area of 26,437.07 ha. The Eastmain-Léran/Alta Option property is subject to a 2% Net Smelter Royalty (NSR) payable to Ressources Minières Alta Inc., which can be purchased at any time by the Purchaser for $500,000.
Terms of the Agreement
The Purchaser will acquire from Focus Graphite, a one hundred percent (100%) interest in the Project in consideration of: (a) a payment of $500,000.00 in cash at Closing (payment received on July 16, 2020); (b) a second payment of $500,000.00 in cash by the 1st of December, 2021; (c) a third payment of $500,000.00 in cash by the 1st of December, 2022; and (d) a final payment of $800,000.00 in cash by the 1st of December, 2023.
The Purchaser shall have the right to elect to pay a portion of the Post-Closing Instalment in the form of shares (the "Share Consideration"), to a maximum of fifty percent (50%) of such Post-Closing Instalment.
Upon the Purchaser meeting all of its obligations under the Agreement by December 1, 2023, Focus Graphite will transfer all mineral titles to the Purchaser and upon competition of the transfer, Focus will retain a 0.5% NSR on the Eastmain-Léran/Alta Option property which can be purchased at any time by the Purchaser for $125,000, along with a 2.5% NSR on the Eastmain-Léran/Staked property which can be purchased at any time by the Purchaser for $625,000.
Marc Roy, Chief Executive Officer of Focus Graphite commented, “We are very pleased today to announce the completion of the asset purchase agreement to sell Focus Graphite’s 100% interest in the Eastmain-Léran Project to a third party. We believe the sale of this asset will unlock significant value to our shareholders and allow Focus Graphite to prioritize its resources on the remaining projects in the Company’s development pipeline.”
Qualified Person
Marc-André Bernier, géo. (QC), P.Geo. (ON), M.Sc., Senior Technical adviser to the Company and a Qualified Person under National Instrument 43 – 101 on standards of disclosure for mineral projects (“NI 43-101”), has reviewed and approved the technical content of this news release.
About Focus Graphite
Focus Graphite Inc. is an advanced exploration company with an objective of producing flake graphite concentrate at its wholly owned Lac Knife flake graphite deposit located 27 km south of Fermont, Québec. In a second stage, to meet Quebec stakeholder interests of transformation within the province and to add shareholder value. Focus is evaluating the feasibility of producing value added graphite products including battery-grade spherical graphite.
Focus Graphite is a technology-oriented graphite development company with a vision for building long-term, sustainable shareholder value. Focus also holds a significant equity position in graphene applications developer Grafoid Inc.
For more information about Focus Graphite, please visit www.focusgraphite.com.
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.
Focus Graphite Investor Contact:
Scott Anderson
Investor Relations
(858) 229-7063
