Sep 30 2013
Focus Graphite Inc. ("Focus" or "the Company"), is pleased to announce that it has entered into a letter agreement (the "Agreement") with Mincom Capital Inc. ("Mincom") (TSX VENTURE:MOI.P), pursuant to which Focus will sell to Mincom all of its rights, title and interest in a series of 149 contiguous and 2 isolated map-designated mining claims located in the Labrador Trough sector of Nunavik, Northern Québec, and collectively referred to as the Romer base and precious metals (Cu-Zn-Ni-Au-PGE) Property (the "Property").
It is intended that the acquisition of the Property will constitute Mincom's "Qualifying Transaction" in accordance with Policy 2.4 of the Exchange ("Policy 2.4"). Focus and Mincom are not dealing at arm's length given that Gary Economo, Jeffrey York, Marc-André Bernier and Chester Burtt (the "Non-Arms' Length Parties") are also directors of Mincom. Accordingly, the Qualifying Transaction is a "Non-Arm's Length Qualifying Transaction" within the meaning of Policy 2.4. The Non-Arms Length Parties did not participate in the deliberations of the board of directors of the Company in connection with the proposed transaction. The Agreement was approved by the independent director of the Company and the letter of intent was signed on September 26, 2013.
As such, the completion of the Qualifying Transaction will require the approval of the shareholders of Mincom to be obtained at a special meeting of shareholders to be called for this purpose. Upon completion of the Qualifying Transaction, it is expected that Mincom will be listed on the Exchange as a Tier 2 mining issuer.
The Romer Property
The Property consists of 149 contiguous and 2 isolated map-designated mining claims for a total of 151 claims (total surface area: 6,870.6 ha or 69 km2). The Property is located in the Labrador Trough sector of Nunavik, the northern division of the Nord-du-Québec administrative region. The Property straddles the junction between NTS 1:50,000-scale topographic sheets 24K-03 (Lac Géridot) and 24K-04 (Lac Thévenet), and covers portions of unpatented townships 5051, 5052 and 5151. It is bound by latitudes 58°06'30" and 58°12'30" North and longitudes 69°29'00" and 69°38'00" West.
The Property is an early stage exploration project strategically located in the Labrador Trough which is currently considered one of the highest potential emerging regions of Québec for base (Cu-Zn-Ni) and precious (Au-PGE) metal mineralizations.
The Property is part of an original group of 13 mineral properties located in the north-central portion of the Labrador Trough acquired by Focus Metals Inc. (now Focus Graphite Inc.) in 2010. The Property encompasses a series of historical base and precious mineral occurrences situated near Hellancourt and Thévenet Lakes.
The Property lies within the Gérido Zone of the Labrador Trough, which is dominated by deep marine sediments, volcanics and iron formations of the Koksoak Group intruded by Montagnais Gabbro sills, a favorable geological context for disseminated or "reef-type" palladium-rich mineralization, copper-zinc massive sulphides mineralization of Besshi and Sedex types and gold-bearing quartz veins associated with iron formations mineralizations.
Two important waves of exploration were conducted on the Property. The first, in the 1950s and 1960s was focused on massive sulphide occurrences. Only limited information on the surveys conducted during this period is available in government assessment files. The second wave, from 1987 to 2002, originated from the discovery of anomalous platinum and palladium associated with nickel-copper mineralization throughout the area, and the subsequent discovery of disseminated palladium-rich mineralization in the Montagnais Gabbro. Apart from these two waves of exploration activity, only limited "boot-and-hammer" prospecting programs were conducted by different groups and there are only four (4) properly documented drill holes located within the limits of the Property and only very limited trenching.
The Property encompasses four significant historical polymetallic mineral occurrences (source: Charbonneau, R. and Robillard, I., 2009. Technical Report on the Romer Property In accordance with National Instrument 43-101, North central part of the Labrador Trough NTS map sheets 24K03 and 24K04; available at www.sedar.com under Focus Graphite Inc., filed May 12, 2010).
St-Pierre Palladium and Bowen Lake Occurrences
- Discovered by Noranda Exploration Inc. in 1987
- Later investigated by Osisko Exploration Ltd and Coleraine Resources Inc. (Kiddie, 2002; GM 60824).
- Minutely disseminated sulphides in a leucocratic facies of the Montagnais Gabbro.
- Several grab samples** containing anomalous Au, Pt and Pd (e.g. St-Pierre occurrence: 1.49 g/t Pd; 0.57 g/t Pt; Noranda, 2001; GM 60824).
Folding Lake ("Fort-Chimo") Occurrence
- Discovery by Frobex Ltd. prior to 1970 (Fisher and Fraser, 1964; GM16751).
- A copper and zinc bearing massive to semi-massive sulphide horizon.
- 1.18% Cu, 0.27% Ni, 1.09 g/t Au, 12.8 g/t Ag and 0.72% Zn over 1.5 m in drill core (Frobex, 1964)
St-Pierre ("Venditelli") Gold Occurrence.
- Discovered in the 1960s by Hollinger North Shore, although not reported
- Rediscovered by Noranda Exploration Inc. in 1987 ((Woldeabzghi and Dessureault, 1988 (GM 46465); Dessureault and al., 1988 (GM 49488); (Dessureault, 1988 (GM47544)
- Network of gold bearing quartz veins invading the carbonate facies iron formation of the Middle Baby Formation.
- 28 g/t Au in a grab sample** (Noranda 1988; GM46465), 11.98 g/t Au over 0.25 m in a channel sample and 1.78 g/t Au over 1.80 m in drill core (Noranda, 1988; GM49488). However, abundant sampling indicates the erratic nature of the mineralization.
* Cautionary note: The Company has not verified the historic exploration results.
** Grab samples are selective by nature and are unlikely to be representative of the average grade of the mineralized zone being sampled.
Subsequent to Focus' acquisition of the Property in 2010, a short reconnaissance program was conducted that included prospecting and rock sampling for a total of 305 samples (GM-64970, Charbonneau, 2010; available at http://sigeom.mrn.gouv.qc.ca/). Several positive results for Au, Pd, Ag and Cu were obtained confirming historically known showings. The sampling program also highlighted a new sector of interest for platinum and palladium in the south central part of the Property where a slightly mineralized gabbro returned 0.672 g/t Pt and 0.577 g/t Pd.
In 2012, Focus commissioned Geotech Ltd. of Aurora, Ontario to conduct a helicopter-borne magnetic and electromagnetic VTEM survey of the Romer property. The Geotech survey is the first high-definition airborne geophysical survey available for the Property. The magnetic survey results will help to identify potential iron formations and geological structures that could be associated with gold-bearing quartz vein-type mineralizations. The survey identified over 972 electromagnetic anomalies forming regional linear trends related to geological units or isolated anomalies which will help to identify sulphide targets that could be associated with PGE "reef-type" and copper-zinc of Besshi/Sedex type mineralizations. These targets will form the basis of follow-up ground exploration programs.
Terms and conditions of the Agreement
The transaction is subject to Exchange and to other standard closing conditions, including satisfactory due diligence review of the Property by Mincom, and the completion of a financing (the "Offering") on terms satisfactory to Mincom, in its sole discretion, as may be necessary in order to meet the minimum listing requirements of the Exchange.
The consideration due to Focus from Mincom for the purchase of the Property is CAN$1,000,000, as determined following an independent valuation prepared at the request of Mincom. Focus will receive the consideration as follows: (i) cash consideration of CAN$250,000; (ii) common shares of Mincom having a total value of CAN$750,000, at a price per share equal to the issue price of the common shares of Mincom to be issued in connection with Mincom's concurrent financing. The Romer property comprises of 151 mining claims but only the 149 contiguous mining claims were assessed for the purpose of establishing the value of the property.
The technical information presented in this press release has been reviewed by Mr. Marc-André Bernier, M.Sc., P.Geo. (Ontario and Québec), Focus Director and Technical Advisor and a Qualified Person under NI 43-101.
Press release avilable from http://www.marketwired.com/