Focus Graphite issues clarification: Kwyjibo Project Preliminary Economic Assessment Disclosure, Marketing Agreement and Offtake Agreement Addendums
TSX VENTURE: FMS
KINGSTON, Ontario, Oct. 22, 2018 (GLOBE NEWSWIRE) -- Pursuant to comments from Ontario Securities Commission staff in connection with an OSC Review, Focus Graphite Inc. (“Focus”) (FMS: TSX-V; OTCQX: FCSMF; FSE: FKC) has agreed to expand upon certain disclosures (“Disclosures”) made in their June 28, 2018 News Release (“News Release”) which announced the results of the Preliminary Economic Assessment (“PEA”) for the Kwyjibo Rare Earth Element (“REE”) Project “(Kwyjibo”), located in Québec, a Marketing Agreement formalizing an existing contractual relationship announced in a March 13, 2018 news release (“Marketing Agreement”) and Addendums (“Addendums”) to Offtake Agreements press released and filed on SEDAR on October 5, 2015 (“Offtake Agreements”). The Disclosures are as follows:
- The Marketing Agreement has now been filed on SEDAR and a material change report was filed.
- The Addendums have now also been filed on SEDAR.
- The grade of the mineral resource reported in Table 2 of the News Release was expressed as per cent total rare earth oxides (% TREO). Table 2 has been expanded to include individual grades of the estimate, in accordance with National Instrument (NI) 43-101 s. 2.3 (1) (d), as has the PEA Technical Report released on August 2, 2018 (“Technical Report”).
- Pre-tax economic projections were displayed in bold typeface in the original News Release while after-tax projections were in normal typeface, which may have had potential to cause confusion. Table 1 of the News Release now displays both pre-tax and after-tax projections in the same black typeface to ensure there is no confusion, as does the Technical Report.
- Table 2, Footnote 1 referred to the term “mineral reserves”. Footnote 1 has been deleted for greater clarity.
- The News Release and Technical Report used the term "ore" to refer to mineralized material whose economic viability has not been demonstrated, which may have had potential to cause confusion. The News Release and Technical Report now specify the mineralized material being referred to throughout.
All documents have been filed on www.sedar.com and are available for viewing under Focus Graphite Inc.
The technical content of this news release was reviewed and approved by Mr. Marc-André Bernier, M.Sc., P.Geo. (Québec and Ontario), Senior Geoscientist with the Table Jamésienne de Concertation Minière (TJCM) of Chibougamau, Québec, a consultant to Focus Graphite Inc. and a "qualified person" as defined in NI 43-101.
About Focus Graphite
Focus Graphite Inc. is an emerging mid-tier junior mining development company, a technology solutions supplier and a business innovator. Focus is the owner of the Lac Knife flake graphite project located 27 km south of Fermont, Québec, currently at the advanced environment assessment stage. To meet Québec stakeholder interests for the transformation of mine concentrate 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 also holds a significant equity position in graphene applications developer Grafoid Inc. and is a member of the 2GL Alliance with Grafoid, Stria Lithium Inc. and Braille Battery Inc.
Forward Looking Statements – Disclaimer
This news release contains forward looking information within the meaning of Canadian securities legislation. All information contained herein that is not clearly historical in nature may constitute forward-looking information. Generally, such forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects”, or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “does not anticipate”, or “believes”, or variations of such words or phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, or “will be taken”, “occur”, or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking Information, including but not limited to: (i) volatile stock price; (ii) the general global markets and economic conditions; (iii) the possibility of write-downs and impairments; (iv) the risk associated with exploration, development and operations of mineral deposits; (v) the risk associated with establishing title to mineral properties and assets; (vi) the risks associated with entering into joint ventures; (vii) fluctuations in commodity prices; (viii) the risks associated with uninsurable risks arising during the course of exploration, development and production; (ix) competition faced by the resulting issuer in securing experienced personnel and financing; (x) access to adequate infrastructure to support mining, processing, development and exploration activities; (xi) the risks associated with changes in the mining regulatory regime governing the resulting issuer; (xii) the risks associated with the various environmental regulations the resulting issuer is subject to; (xiii) risks related to regulatory and permitting delays; (xiv) risks related to potential conflicts of interest; (xv) the reliance on key personnel; (xvi) liquidity risks; (xvii) the risk of potential dilution through the issue of common shares; (xviii) the Company does not anticipate declaring dividends in the near term; (xix) the risk of litigation; and (xx) risk management.
Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made, including but not limited to, continued exploration activities, no material adverse change in metal prices, exploration and development plans proceeding in accordance with plans and such plans achieving their expected outcomes, receipt of required regulatory approvals, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Such forward-looking information has been provided for the purpose of assisting investors in understanding the Company’s business, operations and exploration plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance upon forward-looking information. Forward-looking information is made as of the date of this news release, and the Company does not undertake to update such forward-looking information except in accordance with applicable securities laws.
Focus Graphite Inc.
Mr. Gary Economo
Chief Executive Officer
+1 (613) 241-4040