Fancamp Announces Closing of the Transaction with Platinex Inc. to Develop Ontario Gold Assets
March 14 2023 - 6:00PM
Fancamp Exploration Ltd. (“
Fancamp” or the
“
Corporation”) (TSX Venture Exchange:
FNC) is pleased to announce that it has closed the
Transaction (as defined below) with Platinex Inc.
("
Platinex") (
CSE: PTX), as
previously announced (see news release dated February 6, 2023). As
part of the Transaction, the Corporation transferred its Hennan
Mallard and Dorothy properties and Platinex’s transferred its
Shining Tree property to South Timmins Mining Inc.
("
Goldco"), a subsidiary of Platinex. Pursuant to
the Transaction, Fancamp holds a 25% interest in the share capital
of Goldco, while Platinex holds a 75% interest in the share capital
of Goldco. Fancamp has an option to increase its shareholding to
50% pursuant to the terms provided in the Shareholders’ Agreement
(as defined below) entered into by the parties (the
“
Transaction").
As part of the Transaction: (i) the Corporation
and Platinex entered into a shareholders' agreement (the
“Shareholders’ Agreement”) providing for the
governance of Goldco’s operation; and (ii) the Corporation
purchased 25,869,741 shares of Platinex at a price of $0.04 per
share representing 9.5% of the issued and outstanding shares of
Platinex.
In addition to its 25% interest in the share
capital of Goldco, as part of the Transaction, Fancamp was granted
a 1.0% net smelter return royalty (the "NSR
Royalty") in respect of the Hennan Mallard and Dorothy
properties, subject to a decrease to a 0.5% NSR Royalty should
Fancamp elect to exercise an option to acquire 50% of the issued
and outstanding shares of Goldco, in accordance with the provisions
of a royalty agreement entered into between the parties.
As part of the Transaction, Fancamp contributed
$130,000 to Goldco in respect of the right and option to earn into
the Shining Tree Gold Project in the Abitibi region of Ontario to
be used to advance the initial exploration program.
The Transaction has received conditional
approval from the TSX Venture Exchange (the
“TSXV”), but remains subject to final approval of
the TSXV.
The Transaction was a non-arm’s length
transaction as Fancamp and Platinex are Non-Arm's Length Parties
(as defined in Policy 1.1 of the TSXV) of one another by virtue of
Greg Ferron being an independent director of Fancamp and the Chief
Executive Officer and a director of Platinex.
About Fancamp Exploration Ltd. (TSX-V:
FNC)
Fancamp is a growing Canadian mineral
exploration corporation dedicated to its value-added strategy of
progressing priority mineral properties through exploration and
innovative development. The Corporation is focused on an advanced
asset play poised for growth and selective monetization with a
portfolio of mineral claims encompassing over 158,000 hectares
across Ontario, Quebec and New Brunswick, Canada; including copper,
gold, zinc, titanium, chromium, strategic rare-earth metals and
others. The Corporation continues to identify near term cash-flow
generating opportunities and in parallel aims to advance its
investments in strategic mineral properties. Fancamp has
investments in an existing iron ore operation in the
Quebec-Labrador Trough, a rare earth elements company, NeoTerrex
Corporation, in addition to an investment in a zinc mine planned to
be restarted in Nova Scotia. The Corporation has future
monetization opportunities from its Koper Lake transaction in the
Ring of Fire in Northern Ontario. Fancamp is developing an energy
reduction and titanium waste recycling technology with its advanced
titanium extraction strategy. The Corporation is managed by a
focused leadership team with decades of mining, exploration and
complementary technology experience.
Further information of the Corporation can be
found at: www.fancamp.ca
Forward-looking Statements
This news release contains certain
“forward-looking statements” or “forward-looking information”
(collectively referred to herein as “forward-looking statements”)
within the meaning of applicable securities legislation. Such
forward-looking statements include, without limitation, the receipt
of final approval of the Transaction from the TSXV, forecasts,
estimates, expectations and objectives for future operations that
are subject to a number of assumptions, risks and uncertainties,
many of which are beyond the control of the Corporation.
Forward-looking statements are statements of fact that are not
historical facts or are events or conditions that may occur or be
achieved.
Although Fancamp believes that the material
factors, expectations and assumptions informing such
forward-looking statements are reasonable based on information
available to it on the date such statements were made, no
assurances can be given as to future results of such
statements.
Such forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause
actual events to differ materially from those anticipated in such
forward-looking statements.
Readers are cautioned that the foregoing list of
factors is not exhaustive. Statements including forward-looking
statements are made as of the date they are given and, except as
required by applicable securities laws, Fancamp disclaims any
intention or obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. The forward-looking statements
contained in this news release are expressly qualified by this
cautionary statement.
For Further Information
Rajesh
Sharma, President &
Chief Executive Officer+1 (604) 434
8829info@fancamp.ca |
Debra Chapman,
Chief Financial Officer+1
(604) 434 8829info@fancamp.ca |
|
|
Tara Asfour, Director of Investor
Relations+1 (604) 434 8829tasfour@fancamp.ca |
|
|
|
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this news
release.
Fancamp Exploration (TSXV:FNC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Fancamp Exploration (TSXV:FNC)
Historical Stock Chart
From Jul 2023 to Jul 2024