Fokus Mining Corporation Announces Appointment of Mr. Jean Rainville as President, CEO & Director and Arranges $5 Million Private Placement
Mr. Rainville has over 40 years of experience in the mining industry and financial markets. From 2008, his principal occupation was President and CEO of Blackrock Metals Inc. In 2018, Mr. Rainville ceased to serve as CEO, while retaining his position as President until late 2019, at which time he became a consultant. Previously, Mr. Rainville worked as an engineer, a fund manager and a director of corporate finance and has also served as a director or advisor for several public companies. He holds bachelor's degrees in Mining Engineering and Commerce, both from McGill University.
"It is difficult to think of a better gold exploration property on the Cadillac fault than the Galloway project which was recently optioned by Fokus to acquire a 100% ownership interest therein: it offers favourable geological setting with drill ready targets and excellent logistics" mentioned Mr. Jean Rainville.
"We are pleased that Mr. Rainville has accepted the offer to join Fokus and assume the responsibilities of President and Chief Executive Officer. Mr. Rainville is a seasoned executive with many years of experience with both private and public company. His vast knowledge and experience in the mining industry, financing and development of mining projects, from early stage exploration to the optimization of production, will be of great value to Fokus" stated Mr. Segeral, the Chairman of the Board of Directors of Fokus.
In connection with Mr. Rainville's appointment to the Board of Directors and as President and Chief Executive Officer, Fokus has granted to Mr. Rainville incentive stock options to purchase 400,000 common shares of Fokus pursuant to and in accordance with the terms and conditions of Fokus' stock option plan and subject to any regulatory approval. Each stock option vests immediately and is exercisable at a price of $0.35 per share, being higher than the closing price of Fokus's common shares on the TSX Venture Exchange on September 15, 2020, for a period of five years from the grant date.
Fokus is also pleased to announce that it will undertake a private placement of units in a maximum amount of $5 million at a price of $0.40 per unit. Each unit will be comprised of one "flow-through" common share and one-half of a common share purchase warrant. Each whole warrant will entitle its holder to acquire one additional common share of Fokus at a price of $0.45 for a period of three years. Fokus intends to use the proceeds from the private placement for exploration on certain of its properties in Québec, including the Galloway project, on which Fokus intends to conduct a drill program of up to approximately 40,000 metres.
Fokus will pay a finder's fee of 7% cash and 7% finder's warrants, each exercisable for one unit at a price of $0.40 for a period of three years from the completion of the closing of the private placement. Closing is expected to take place on or before September 30, 2020. The private placement will be effected pursuant to prospectus exemptions under applicable securities regulations. The common shares and warrants issued by Fokus at closing will be subject to a four-month hold period. PowerOne Capital Markets Limited will act as finder in connection with the private placement.
The Galloway gold project is located in Dasserat Township, Abitibi West, Québec, Canada (NTS32D/03). The property is less than 30 km west of the Rouyn-Noranda mining district and is easily accessible via Trans-Canada Highway 117. It consists of 3 mining concessions and 95 claims covering a total area of 2,668 hectares. The Galloway project is the result of the amalgamation of the Hurd, Ogima Nord, Renault Bay, Sandborn, Perron, Cadillac, Francoeur and Lac Fortune claims blocks. Please refer to the press release of Fokus dated September 9, 2020 for a detailed description of the Galloway project.
Except for historical information, this news release may contain certain "forward looking statements", including those relating to the proposed private placement by Fokus, the use of proceeds of the private placement and the exercise of the option relating to the acquisition of the Galloway project pursuant the Mineral Option Agreement dated July 16, 2020 with Vantex Resources Ltd. (the "Mineral Option Agreement"). These statements may involve a number of known and unknown risks and uncertainties and other factors that may cause the actual results to be materially different from the expectations and projections of Fokus. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, including the exercise of the option under the Mineral Option Agreement, the proposed private placement or the use of the proceeds from the private placement, or if any of them do so, what benefits Fokus will derive therefrom. A more detailed discussion of the risks inherent in Fokus's business is available in documents filed by Fokus on SEDAR at www.sedar.com. Unless otherwise stated, all forward-looking statements in this news release speak only as of the date of this news release and Fokus does not have any obligation to update such statements, except to the extent required by applicable securities laws.
About Fokus Mining
Fokus Mining is a mineral resource company actively exploring in Québec on acquiring and exploring precious metals deposits located in the province of Québec.
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This press release is not an offer or a solicitation of an offer of securities for sale in the United States. The securities described herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold in the United States unless registered under the U.S. Securities Act or unless an exemption from registration is available.
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SOURCE Fokus Mining Corp.
Jean Rainville, President & Chief Executive Officer, Tel.: (819) 762-0609, Fax: (819) 762-0097, Email: email@example.com