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Fancamp Exploration Announces Investment in the Rare Earth Elements company NeoTerrex Corporation
VANCOUVER, British Columbia, Dec. 23, 2021 (GLOBE NEWSWIRE) -- Fancamp Exploration Ltd. (“Fancamp” or the “Corporation”) (TSX Venture Exchange: FNC) is pleased
About this update from Fancamp Exploration Ltd.
[{"type":"text","content":" VANCOUVER, British Columbia, Dec. 23, 2021 (GLOBE NEWSWIRE) -- Fancamp Exploration Ltd. (“Fancamp” or the “Corporation”) (TSX Venture Exchange: FNC) is pleased to announce that it has entered into a subscription agreement (the “Agreement”) with NeoTerrex Corporation (“NeoTerrex”) as part of an oversubscribed brokered private placement of 46,844,000 common shares (the Common Shares) at a price of $ 0.10 per share and 5,600,000 flow through shares at a price of $ 0.125 in the share capital of NeoTerrex (the “Offering”). Pursuant to the Agreement, the Corporation has subscribed to 8,932,000 Common Shares at a price of $0.10 of NeoTerrex, representing approximatively 15% of the issued and outstanding shares of NeoTerrex after completion of the Offering. Concurrently with the Agreement, the Corporation also entered into an investor rights letter with NeoTerrex, whereby subject to and in accordance with the terms therein, a nominee of the Corporation will join the board of directors of NeoTerrex with one (1) seat out of up to six (6). Fancamp will play an active role in supporting the venture through its network and strategic relationship. The Corporation’s investment in NeoTerrex as part of the Offering (the “Investment”) is not a “related party transaction” within the meaning of the applicable securities legislation. Mathieu Stephens, a director of the Corporation, is also a principal and one of the founders of NeoTerrex. Accordingly, Mr. Stephens restrained himself from voting as a director of the Corporation on the Investment. NeoTerrex Corporation is a private rare earth elements (REE) exploration company which is focused on developing exploration projects of high grade critical rare earth oxides in Quebec and is expected to go public in 2022. The company has two key projects: Mount Discovery and Greenwinds. The Quebec Government geological database (Sigeom) indicates the presence of high values of critical rare earth elements neodymium and praseodymium, which are highly sought-after light rare earth elements crucial in products such as motors, turbines and medical devices. Demand for them exploded in recent years with the growth of technology and will continue to climb amid the ongoing race to create a large electric vehicle market. The Corporation’s President and CEO Rajesh Sharma stated “This strategic investment in NeoT...