Fancamp Announces Joint Venture with Platinex Inc. to Develop Ontario Gold Assets

VANCOUVER, British Columbia, Feb. 06, 2023 (GLOBE NEWSWIRE) -- Fancamp Exploration Ltd. (“Fancamp” or the “Corporation”) (TSX Venture Exchange: FNC) is pleased to announce that it has entered into a joint venture arrangement with Platinex Inc. ("Platinex") (CSE: PTX) to facilitate advancing the exploration and development of certain gold mineral properties held by the parties located in Ontario (see attached map). As part of the contemplated transaction (the “Transaction"), Platinex and the Corporation will:

1. transfer Fancamp’s Heenan Mallard and Dorothy properties and Platinex’s Shining Tree property to South Timmins Mining Inc. ("Goldco"), a wholly owned subsidiary of Platinex. Subsequent to the Transaction, Goldco will be held 25% by Fancamp and 75% by Platinex. Fancamp will have an option to increase its shareholding to 50% on the basis described below;
2. enter into a shareholders' agreement in relation to the governance of Goldco’s operation; and
3. enter into a subscription agreement, whereby the Corporation will purchase 9.5% of the issued and outstanding shares of Platinex.
   

Completion of the Transaction is subject to approval of the TSX Venture Exchange.

Rajesh Sharma, President and Chief Executive Officer of Fancamp Exploration Ltd.

“Fancamp is pleased to join hands with Platinex by combining their respective properties in the SW Abitibi Greenstone Belt, Canada’s largest gold producing region. This Transaction is a continuation of Fancamp’s strategic process of creating value from its vast portfolio of mineral properties by either optioning out, entering joint venture or monetizing its assets. This joint venture provides an opportunity for scale and a potential for building a future mine in a highly prospective gold district. With Fancamp’s strong balance sheet, the Corporation can continue to benefit from its financial flexibility to participate in such an accretive transaction which utilizes the strengths and synergy of the two companies.”

Transaction Summary

The Transaction includes the following material components:

Property Transfers to Goldco

• Platinex will transfer its district scale Shining Tree gold mineral properties located in the Shining Tree District of Ontario, consisting of 1,138 mining claims and one mining lease (the "Shining Tree Properties") to Goldco in consideration for shares representing 75% of the issued and outstanding shares of Goldco. The Shining Tree Properties are situated between the Cote Gold development project of IAMGOLD and Sumitomo, and the Juby Project of Aris Mining, along the prospective Rideout Deformation Zone.
• Fancamp will transfer its Heenan Mallard gold property located in the Swayze Greenstone Gold Belt adjacent to Côté Gold Deposit in Northern Ontario, consisting of 296 mining claims (the "Swayze Properties") and the Dorothy Gold project adjacent to Dynasty Gold’s Thundercloud Project in Northern Ontario, consisting of 70 mining claims (the "Dorothy Property"), to Goldco in consideration for shares representing 25% of the issued and outstanding shares of Goldco. The Swayze Properties are situated east of the Cote Gold project, along a splay of the Rideout Deformation Zone.
• Fancamp will be granted a 1.0% net smelter return royalty (the "NSR Royalty") in respect of the Swayze Properties and the Dorothy Property, subject to a decrease to 0.5% NSR Royalty should Fancamp elect to exercise the Option to acquire 50% of the issued and outstanding shares of Goldco, in accordance with the provisions of a royalty agreement to be entered into between the parties.