Fancamp Exploration Ltd. Enters Strategic Agreement
Fancamp Exploration Ltd. (“Fancamp” or the “Company”) (TSX Venture Exchange: FNC) is excited to announce a major agreement with Lode Gold Resources Inc. (“Lode Gold”) and 1475039 B.C. Ltd. (“Spin Co”, also referred to as “Gold Orogen”). This partnership is designed to propel the exploration and development of several mineral properties located in the Yukon and New Brunswick regions.
Transaction Overview
This agreement includes several important transactions:
- Lode Gold will transfer its interests in the McIntyre Brook mineral property in New Brunswick to a newly established joint-venture entity (“JV Co”), while Fancamp will likewise transfer its interests in the Riley Brook mineral property to this same entity, resulting in both parties holding a 50% stake in JV Co.
- Additionally, Lode Gold will transfer its Golden Culvert and Win mineral properties to Spin Co.
- Fancamp plans to invest $2,500,000 into Spin Co in exchange for 19.9% of its outstanding shares following the completion of the spin-out transaction, with expectations of raising around $3,000,000 from an indirect flow-through offering.
- Furthermore, an equity private placement will aim to secure an additional $1,500,000 for Spin Co.
- Funding will be directed towards exploration activities, with approximately $1.86 million earmarked for New Brunswick and about $1.56 million for Yukon.
- Fancamp will also invest $500,000 into Lode Gold for special warrants.
- Moreover, Lode Gold will carry out a spin-out transaction, distributing shares of Spin Co to its shareholders.
The successful completion of these transactions is subject to approval from the TSX Venture Exchange (the “TSX-V”).
Strategic Rationale for Investment
New Brunswick Joint Venture
The joint venture with Lode Gold targets one of the largest, underexplored land packages in New Brunswick, an area known for its gold and polymetallic mineral potential. This collaboration positions both companies as key players in a promising exploration region. By merging Fancamp’s extensive landholdings with Lode Gold’s assets, they are well-equipped to enhance their exploration efforts effectively.
Investment in Gold Orogen
Fancamp’s partnership will generate significant value, establishing it as a strategic shareholder in both Lode Gold and Spin Co. This new strategic position will provide access to four mineral exploration assets in mining-friendly areas, specifically the Yukon and New Brunswick. The Yukon properties alone cover a 99.5 km² land package that shows encouraging gold mineralization trends.
Rajesh Sharma, President and CEO of Fancamp Exploration, stated, “This transaction demonstrates our ongoing commitment to discovering growth opportunities by leveraging robust financial support and industry expertise. The New Brunswick joint venture combines valuable resources from both companies to spearhead exploration efforts in the region.”
Wendy T. Chan, CEO and Director of Lode Gold, added, “This partnership between Lode Gold and Fancamp is a transformative transaction that marks a significant advancement for both companies, allowing us to enhance our key mineral projects through collaboration.”
Transaction Details
The transaction includes several components:
Property Transfers and Joint Venture Agreements
- Lode Gold will transfer its Golden Culvert and Win properties to Spin Co.
- JV Co will manage the operations related to the McIntyre Brook and Riley Brook properties.
- Fancamp holds a 2% net smelter returns royalty on the Riley Brook Property.
- A Shareholders’ Agreement will outline the operational framework and governance structure for JV Co.
Private Placement Initiatives
In addition to these investments, Fancamp will conduct a private placement of Lode Gold Special Warrants, which will convert into common shares after the spin-out is finalized, aiming to facilitate additional capital for exploration projects.
Moreover, further funds will be raised through Spin Co’s private placement initiative, ensuring the sustainability and growth of both companies in the competitive mineral exploration sector.
Future Prospects
Fancamp Exploration Ltd. is committed to significant growth and development within the mining industry, focusing on strategic mineral properties across various provinces and expanding its portfolio in high-potential investment opportunities. The company’s vision includes advancing its current projects and actively pursuing new ventures that foster value creation through mineral exploration.
For more information about Fancamp Exploration Ltd., please visit their official website or reach out to their investor relations team.
Frequently Asked Questions
What is the main focus of Fancamp Exploration Ltd.?
Fancamp is focused on mineral exploration and aims to create value through strategic investments in mineral properties.
What properties are involved in the joint venture with Lode Gold?
The joint venture includes the Riley Brook and McIntyre Brook mineral properties, as well as Yukon properties like Golden Culvert and Win.
How much will Fancamp invest in Spin Co?
Fancamp intends to invest $2,500,000 into Spin Co to secure a 19.9% shareholding.
What are the expected exploration activities?
A total of approximately $3.42 million is allocated for exploration activities in New Brunswick and Yukon.
Who can be contacted for more information about Fancamp?
For further inquiries, please contact Rajesh Sharma, CEO, Debra Chapman, CFO, or Tara Asfour, Director of Investor Relations at Fancamp.
