Focus Metals closes $10 mln bought deal financing

Focus Metals (CVE:FMS)(OTCQX:FCSMF) said Wednesday it has closed a $10 million bought deal flow-through private placement financing.
The offering, which was completed by a syndicate of underwriters led by Cormark Securities, consisted of a total of 7.69 million flow-through shares at a price of $1.30 each.
The new funds will be used to incur eligible Canadian exploration expenses, as defined under Canada's Income Tax Act, on the company's Lac Knife graphite project in Quebec and the Kwyjibo property in the same province.
Focus Metals' president and CEO Gary Economo said in a statement that the offering leaves the company well-positioned to meet its 2012 expansionary, exploration and discovery drilling objectives at its Lac Knife and Kwyjibo, Quebec properties.
"Again, the market has demonstrated its continuing support for our company's resources, our management and our business objectives as we move towards anticipated production at Lac Knife by late 2013," Economo said.
In connection with the financing, the company paid the underwriters a fee equal to six percent of the proceeds and issued a total of 461,580 non transferable broker warrants.
Focus Metals is a junior mining exploration company with discovery-stage base metals and industrial minerals opportunities in Quebec.
Yesterday, the company and partner Soquem announced significant rare earth element (REE) drill results from their fall 2011 core drill program at the Kwyjibo property, located in northeastern Quebec.
The most significant results were intersected on the Josette horizon in hole 10885-11-57, which hit 2.4 percent total rare earth oxides (TREO) over 48.8 metres, and included 3.4 percent TREO over 24.3 metres, and 6.83 percent TREO over 1.1 metres.
The drill program, which took place between September and November, comprised 12 holes totaling 2,064 metres.
Looking forward, Focus and Soquem said they are working on the design of a two-phase follow-up exploration program for the property, expected to start this summer.