Focus Graphite Closes Second Tranche of Financing with Alumina Partners

KINGSTON, ON / ACCESSWIRE / December 23, 2021 / Focus Graphite Inc. (TSXV:FMS) (the "Company" or "Focus Graphite") announced today it has closed a second tranche under the previously announced equity financing facility (the "Equity Financing Facility") with Alumina Partners (Ontario) Ltd. ("Alumina"), an affiliate of New York-based private equity firm Alumina Partners, LLC.

In the second tranche under the Equity Financing Facility, the Company completed a private placement for gross proceeds of $200,000 from Alumina, with Alumina receiving 3,137,254 units of the Company consisting of a common share priced at $0.06375 per share and warrants to purchase 1,568,627 common shares, exercisable at $0.10625 per share for 36 months.

The Equity Financing Facility will provide the Company with up to $12.0 million over a 24-month period for working capital and general corporate purposes. Under the Equity Financing Facility, the Company may, subject to certain conditions, restrictions and acceptance by Alumina, raise funds through private placements in tranches of up to $500,000. Each tranche shall be a private placement of units, to be comprised on one common share and one-half of a common share purchase warrant, which will be exercisable for 36 months. The units will be issued at a discount of 25% of the closing market price at the time of each tranche, and the warrants will be issued at a 25% premium over the closing market price at the time of each tranche.

There are no standby charges or other upfront fees associated with the Equity Financing Facility. Each tranche of units issued under the Equity Financing Facility will be subject to the acceptance of the TSX Venture Exchange, and the securities issued will be subject to the customary 4-month hold period.

In other news, Focus is pleased to report that on December 2, 2021, the Company received a first post-closing instalment payment in the amount of $500,000, paid in cash and shares of Mont Royal Resources Ltd., an Australian mining company (ASX: MRZ) per the terms of (a) the Mineral Property Acquisition agreement ("MPA Agreement") entered into on July 6, 2020, with Konkera Holdings Pty Ltd ("Konkera"), an Australian proprietary limited company regarding Focus' Eastmain-Léran/Alta Option and Eastmain-Léran/Staked gold and base metals properties Québec; and (b) the assignment agreement ("Letter Deed Agreement") between the Company and Konkera dated May 7, 2021, whereby the Company agreed to assign Konkera's obligations under the MPA Agreement to a subsidiary of Northern Lights Minerals Pty Ltd., an Australian proprietary limited company.