Fancamp Announces Investment in the Rare Earth Elements company NeoTerrex Corporation
24 December 2021 - 12:30AM
Fancamp Exploration Ltd. (“
Fancamp” or the
“
Corporation”) (TSX Venture Exchange: FNC) is
pleased to announce that it has entered into a subscription
agreement (the “
Agreement”) with NeoTerrex
Corporation (“
NeoTerrex”) as part of an
oversubscribed brokered private placement of 46,844,000 common
shares (the
Common Shares) at a price of $ 0.10
per share and 5,600,000 flow through shares at a price of $ 0.125
in the share capital of NeoTerrex (the
“
Offering”).
Pursuant to the Agreement, the Corporation has
subscribed to 8,932,000 Common Shares at a price of $0.10 of
NeoTerrex, representing approximatively 15% of the issued and
outstanding shares of NeoTerrex after completion of the
Offering.
Concurrently with the Agreement, the Corporation
also entered into an investor rights letter with NeoTerrex, whereby
subject to and in accordance with the terms therein, a nominee of
the Corporation will join the board of directors of NeoTerrex with
one (1) seat out of up to six (6). Fancamp will play an active role
in supporting the venture through its network and strategic
relationship.
The Corporation’s investment in NeoTerrex as
part of the Offering (the “Investment”) is not a
“related party transaction” within the meaning of the applicable
securities legislation. Mathieu Stephens, a director of the
Corporation, is also a principal and one of the founders of
NeoTerrex. Accordingly, Mr. Stephens restrained himself from
voting as a director of the Corporation on the Investment.
NeoTerrex Corporation is a private rare earth
elements (REE) exploration company which is focused on developing
exploration projects of high grade critical rare earth oxides in
Quebec and is expected to go public in 2022. The company has two
key projects: Mount Discovery and Greenwinds. The Quebec Government
geological database (Sigeom) indicates the presence of high values
of critical rare earth elements neodymium and praseodymium, which
are highly sought-after light rare earth elements crucial in
products such as motors, turbines and medical devices. Demand for
them exploded in recent years with the growth of technology and
will continue to climb amid the ongoing race to create a large
electric vehicle market.
The Corporation’s President and CEO Rajesh
Sharma stated “This strategic investment in NeoTerrex will enable
Fancamp to participate in the critical and strategic mineral supply
chain that has assumed significant importance in reducing
dependence on foreign supply to North America. US and Canadian
governments have declared strong support to build and develop
strategic minerals projects to meet the increasing demand for such
minerals to satisfy the burgeoning market to attain their net-zero
carbon reduction targets. NeoTerrex is well positioned to be a
focused vehicle through which Fancamp could participate in the
emerging opportunity in REE exploration.”
Fancamp has in its current portfolio, two Quebec
properties with REE potential.
About Fancamp Exploration Ltd. (TSX-V: FNC)
Fancamp is a growing Canadian mineral
exploration corporation dedicated to its value-added strategy of
advancing its priority mineral properties through exploration and
innovative development. The Corporation owns numerous mineral
resource properties in Quebec, Ontario and New Brunswick, including
chromium, strategic rare-earth metals, gold, zinc, titanium and
more. Fancamp’s chromium properties in the highly sought-after Ring
of Fire in Northern Ontario are strategically located. Its rare
earth element properties in Quebec are a special focus. Fancamp has
investments in an existing iron ore operation in the
Quebec-Labrador Trough, in addition to an investment in a zinc mine
planned to be restarted in Nova Scotia. Fancamp is developing
energy reduction technology with its advanced Titanium extraction
strategy. The Corporation is managed by a focused leadership team
with decades of mining, exploration and complementary technology
experience.
Forward-looking Statements
This news release includes certain statements
which are not comprised of historical facts and that constitute
"forward-looking information" and "forward-looking statements"
within the meaning of applicable Canadian securities laws.
Forward-looking statements include estimates and statements that
describe Fancamp’s future plans, objectives or goals, including
words to the effect that Fancamp or its management expects a stated
condition or result to occur. Forward-looking statements may be
identified by such terms as “believes”, “anticipates”, “expects”,
“estimates”, “may”, “could”, “would”, “will”, “foresees” or “plan”.
Since forward-looking statements are based on multiple factors,
assumptions and address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Although
these statements are based on information currently available to
Fancamp, Fancamp provides no assurance that actual results will
meet the management’s expectations. Risks, uncertainties and other
factors involved with forward-looking information could cause
actual events, results, performance, prospects and opportunities to
differ materially or simply fail to materialize from those
expressed or implied by such forward-looking information. There can
be no assurance that forward-looking statements will prove to be
accurate and actual results and future events could differ
materially from those anticipated in such statements. Important
factors that could cause actual results to differ materially from
Fancamp’s expectations include, among others, political, economic,
environmental and permitting risks, mining operational and
development risks, litigation risks, regulatory restrictions,
environmental and permitting restrictions and liabilities, the
inability of NeoTerrex to raise capital or secure necessary
financing in the future, as well as factors discussed in the
section entitled “Risks and Uncertainties” in Fancamp’s
management’s discussion and analysis of Fancamp’s financial
statements for the period ended July 31, 2021. Although Fancamp has
attempted to identify important factors that could cause actual
results to differ materially, there may be other factors that cause
results not to be as anticipated, estimated or intended. Fancamp
considers its assumptions to be reasonable based on information
currently available, but there can be no assurance that such
statements will prove to be accurate as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
forward-looking statements.
For Further Information
Rajesh Sharma, President & Chief Executive
Officer+1 (604) 434 8829info@fancamp.ca |
Debra Chapman, Chief Financial Officer+1 (604) 434
8829 info@fancamp.ca |
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this news release.
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