Replies to post #551 on Focus Graphite Inc. (FCSMF)

[JohnCM]

Definitely lacking direction ...



OTTAWA (September 24, 2014) — Focus Graphite Inc. (TSX-V: FMS; OTCQX: FCSMF; FRANKFURT: FKC) (“Focus” or the “Company”) announced today the launching of the project financing phase of the Lac Knife development project, with the closing of the first tranche of a non-brokered private placement offering (the “Offering”) of up to 13,000,000 units (the “Units”) at a price of $0.50 per Unit for gross proceeds of $6,500,000. In total, Focus issued 3,861,000 units for gross proceeds of $1,930,500. Each unit consists of one (1) common share and one (1) warrant. Each warrant entitles the holder to acquire one (1) additional common share of the Company at a price of $0.60 until September 23, 2018.

In connection with the Offering, the Company paid finder’s fees totalling $71,470 and issued 142,940 non-transferable warrants with each warrant entitling the holder to acquire one (1) common share of the Company at a price of $0.60 per common share for a period of twenty-four (24) months expiring on September 23, 2016. Furthermore, insiders of the Company have participated in this first tranche for a total proceeds of $202,000. The securities issued under the Offering are subject to a four-month hold period expiring on January 24th, 2015. Focus may raise up to $6,500,000 under the current Offering and expects to proceed with a second closing shortly. The Offering is subject to the final approval of the TSX Venture Exchange.

The net proceeds from the Offering will be used to work towards several milestones associated with the development of the Company’s Lac Knife natural flake graphite project, in particular work related to the Detailed Engineering Phase of the project including the Environmental Impact Study, Hydro-Quebec’s detailed engineering study to connect power to the mine site, upgrading of the existing main access road to the mine site, geotechnical studies and for general corporate working capital purposes.

Management’s emphasis during this development phase is placed on deploying best efforts to advance the potential mine start-up to 2016 from the scheduled 2017 start-up, as forecast in the Lac Knife project Feasibility Study announced on August 8th, 2014 (see news release of the Company for more details).