FOKUS MINING ENTERS INTO AGREEMENT TO ACQUIRE FOR CANCELLATION GALLOWAY BONUS PAYMENTS RIGHTS
Fokus Mining Corporation (“Fokus” or the “Company”) (TSXV: FKM, OTCQB: FKMCF, FSE: F7E1) is pleased to announce that it has entered into an agreement (the “Agreement”) with Vantex Resources Ltd. (TSXV: VAX) (the “Vendor”), pursuant to which it will acquire for cancelation the rights of the Vendor to receive $500,000 from the Company, upon the first declaration of a minimum 500,000 ounces of gold as “indicated resources” on the Galloway gold project, and an additional $500,000 upon the first declaration of a minimum 1,000,000 ounces (the “Additional Payments”). The rights to the Additional Payments were granted under the option agreement dated July 15, 2020 between the Company and the Vendor pursuant to which the Company acquired the Galloway gold project (as more fully described in a press release dated July 16, 2020).
Pursuant to the Agreement, the Company will pay the Vendor a consideration of $250,000 (the “Transaction”), comprised of (i) $100,000 in cash (the “Cash Consideration”), and (ii) $150,000 through the issuance of common shares in the capital of the Company (the “Consideration Shares”) at a deemed price equal to the greater of $0.08 and the five-day volume-weighted average trading price of the Company’s shares on the TSX Venture Exchange (the “TSXV”) on the day preceding the closing date of the Transaction, which is expected to be on or about August 26, 2022 (the “Closing Date”).
“This is a vote of confidence by Fokus management in the Galloway project,” said Jean Rainville, CEO, and President of Fokus. “We completed our first round of drilling last December, received the latest assay results in April, and have spent the last few months reviewing the data and our models with our advisors. The next step is to conduct further metallurgical testing for which we will provide more details in the coming days, as well as the process for completing the planned independent resource estimate.”, added Mr. Rainville.
The Consideration Shares are subject to four, five, six-, seven-, eight- and nine-month voluntary resale restrictions, each applicable to the sixth (1/6) of the Consideration Shares.
The Transaction is an arm’s length transaction for the purposes of the policies of the TSXV. No finder’s fees will be paid in connection with the Transaction. The Transaction is subject to the approval of the TSXV.
Fokus is a mineral resource company acquiring and exploring precious metal deposits located int the province of Quebec. In implementing this major undertaking within the Canadian mining industry, we are determined to unlock the secret of the Galloway gold project.
The Galloway project covers an area of 2,865.54 hectares and is located just north of the Cadillac -Larder Lake deformation which extends laterally for more than 100 kilometres. Numerous gold deposits are related to that structure and its subsidiaries. The Company is currently focusing its exploration efforts on a small western portion of the mining claims where several mining occurrences have been identified. For more information, please visit our website at: www.fokusmining.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information:
Jean Rainville, President & Chief Executive Officer
Tel.: (514) 918-3125, Fax: (819) 762-0097
Caution Regarding Forward-Looking Statements
Certain statements contained in this news release may constitute forward‐looking information. Forward‐looking information is often, but not always, identified by the use of words such as “anticipate”, “plan”, “estimate”, “expect”, “may”, “will”, “intend”, “should”, and similar expressions. Forward‐looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward‐looking information. The Company’s actual results could differ materially from those anticipated in this forward‐looking information as a result of regulatory decisions, competitive factors in the industries in which the Company operates, prevailing economic conditions, changes to the Company’s strategic growth plans, and other factors, many of which are beyond the control of the Company. The Company believes that the expectations reflected in the forward‐looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward‐looking information should not be unduly relied upon. Any forward‐looking information contained in this news release represents the Company’s expectations as of the date hereof, and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward‐looking information whether as a result of new information, future events or otherwise, except as required by applicable securities legislation