Business
Focus Graphite Sells Its 100% Interest in the Eastmain-Léran Project, Eastern Eeyou Istchee James Bay Territory, Québec
KINGSTON, Ontario, July 22, 2020 (GLOBE NEWSWIRE) -- Focus Graphite Inc. (“Focus” or the "Company") (TSX-V: FMS; OTCQX: FCSMF; FSE: FKC), an advanced exploratio
About this update from Focus Graphite Inc.
[{"type":"text","content":" KINGSTON, Ontario, July 22, 2020 (GLOBE NEWSWIRE) -- Focus Graphite Inc. (“Focus” or the \"Company\") (TSX-V: FMS; OTCQX: FCSMF; FSE: FKC), an advanced exploration company aspiring to become a producer of high purity flake graphite concentrate from its flagship Lac Knife graphite project in Québec, today announced that the Company (the “Vendor”) has signed the definitive asset purchase agreement (the “Agreement”) for the sale of its 100% interest in the Eastmain-Léran project to a third party (the “Purchaser”). The transaction closed on July 16, 2020 and the initial payment of $500,000 due at closing has been received. The Eastmain-Léran project (the “Project”) is comprised of two contiguous properties located in eastern Eeyou Istchee James Bay territory of northern Québec, 37 km southeast of Stornoway Diamonds (Canada) Inc.’s Renard diamond mine, and 10 km to the East of the Otish Mountains access road (HWY 167 North): The Eastmain-Léran/Alta Option property which consist of 32 map-designated (“CDC”) claims covering an area of 1,678.81 ha and the Eastmain-Léran/Staked property consists of 505 CDC claims covering an area of 26,437.07 ha. The Eastmain-Léran/Alta Option property is subject to a 2% Net Smelter Royalty (NSR) payable to Ressources Minières Alta Inc., which can be purchased at any time by the Purchaser for $500,000. Terms of the Agreement The Purchaser will acquire from Focus Graphite, a one hundred percent (100%) interest in the Project in consideration of: (a) a payment of $500,000.00 in cash at Closing (payment received on July 16, 2020); (b) a second payment of $500,000.00 in cash by the 1st of December, 2021; (c) a third payment of $500,000.00 in cash by the 1st of December, 2022; and (d) a final payment of $800,000.00 in cash by the 1st of December, 2023. The Purchaser shall have the right to elect to pay a portion of the Post-Closing Instalment in the form of shares (the \"Share Consideration\"), to a maximum of fifty percent (50%) of such Post-Closing Instalment. Upon the Purchaser meeting all of its obligations under the Agreement by December 1, 2023, Focus Graphite will transfer all mineral titles to the Purchaser and upon competition of the transfer, Focus will retain a 0.5% NSR on the Eastmain-Léran/Alta Option property which can be purchased at any time by the Pu...