Focus Graphite (CVE:FMS)(OTCQX:FCSMF) has closed the bought deal private placement financing announced earlier this month, raising $3 million for its Lac Knife property in Quebec.
The deal, with Cormark Securities, saw Fission sell 3.3 million "flow through" shares at a price of 91 cents each.
The new funds, which will be used to incur general exploration expenses that are qualified as "flow through mining expenditures" under the Canadian income tax act, will be spent specifically for infill and exploration drilling at Lac Knife.
"The closing of this offering leaves our company well-positioned to meet our planned 2013 infill and exploration drilling programs at our Lac Knife, Quebec property," said president and CEO, Gary Economo.
"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."
In November, the company received a bullish outlook from analysts, as Fundamental Research Corp raised its fair value estimate on Focus after the preliminary economic assessment (PEA) on the graphite explorer's Lac Knife deposit was released last October.
The equity research firm, which also highlighted Focus' strong cash position, raised its fair value estimate on the company to $1.44 per share from $1.21 per share previously. Analyst Nicole Engbert noted the Lac Knife PEA shows high production rates, and three potential saleable products. The long-awaited PEA, which was unveiled in late October, showed average concentrate grades of 92% graphitic carbon.
The company says that Lac Knife is unique because of its cost-mitigating, high concentration of large, medium and small flake graphite. Flake graphite - the most actively pursued type of graphite and associated with next-generation technologies - is made up of layers of graphene, which is the mineral’s base structural element.
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