Fokus Mining Corporation Pursues $1.5 Million Funding Initiative

Fokus Mining Corporation Announces New Funding Initiative

Fokus Mining Corporation (TSX.V: FKM) and OTCQB: FKMCF has unveiled its plan to raise $1.5 million through a private placement. This decision is particularly significant as it showcases the company’s commitment to advancing its projects and expanding its operational capabilities.

Details of the Private Placement Offering

The private placement will consist of a non-brokered offering, intending to secure minimum gross proceeds of $1.5 million. This will be achieved through the issuance of two types of units: standard units and flow-through units. The total amount includes approximately $500,000 from standard units priced at $0.05 each and $1,000,000 from flow-through units priced at $0.08 each. The structure of these units is designed to maximize the benefits for investors and provide essential funding for ongoing operations.

Investment Structures Offering

Each unit will entail one common share and one purchase warrant, allowing investors to purchase additional shares at a set price of $0.08 for the next three years. The flow-through units will contain similar features but offer distinct advantages by allowing tax benefits associated with mineral exploration expenses.

Planned Use of Proceeds

Fokus plans to utilize the net proceeds from this offering primarily for expenses related to its exploration activities at the Galloway project. This project holds great potential as Fokus aims to further its work in the area and enhance its overall value in the market.

Finder’s Fees Structure

To facilitate the offering, Fokus will pay a finder’s fee to an independent finder. This fee will consist of 7% of the gross proceeds generated from investors they introduce, alongside finder warrants amounting to 8% of the total number of units issued to these subscribers. This arrangement not only incentivizes the finder but also ensures the company maximizes its outreach.

Approval Process and Conditions for Closing

The closing of this private placement is contingent upon receiving approvals from the TSX Venture Exchange (TSXV) and other necessary regulatory approvals, demonstrating Fokus's commitment to adhering to compliance requirements within the industry. The anticipated closing date is aimed for October 4, 2024, but may be adjusted based on various factors.

The Galloway Project: A Key Investment Focus

Fokus Mining Corporation is primarily focused on the Galloway project, a significant gold exploration initiative situated in Quebec, Canada. The project covers an impressive area of 2,865.54 hectares and is strategically located near the Cadillac-Larder Lake deformation zone, a highly mineralized region.

Exploration Progress and Resource Estimates

Recent exploration efforts have resulted in a notable NI 43-101 inferred resource estimation of approximately 1.419 million ounces of gold, based on a price of US$1,750 per ounce. This initial assessment positions the Galloway project as a favorable candidate for future development, especially as higher gold prices could further increase the estimated resources.

Company Vision and Future Goals

Fokus Mining Corporation is on a trajectory to unlock the hidden potential of its projects with a diligent approach toward exploration and resource development. The current focus, particularly on the western side of the Galloway claim, showcases a commitment to identifying new mineral occurrences that may enhance the company’s market value.

Frequently Asked Questions

What is the purpose of the $1.5 million private placement?

The purpose is to fund exploration activities at the Galloway project and to bolster general working capital.

What are the terms of the units being offered?

The units consist of common shares and purchase warrants, priced at $0.05 for standard units and $0.08 for flow-through units.

How will the proceeds be utilized?

The proceeds will primarily support exploration expenditures and general corporate purposes.

What are finder’s fees in this offering?

Finders will receive 7% of the raised gross proceeds and finder warrants equal to 8% of the total number of units issued.

What is the estimated timeline for closing the offering?

The offering is expected to close by October 4, 2024, subject to regulatory approvals.

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