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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 19, 2012) - Fancamp Exploration Ltd. (News - Market indicators) ("Fancamp" or the "Issuer") is pleased to announce that it has entered into an agreement with Marquest Capital Markets (the "Finder") in connection with a non-brokered private placement financing of 8,200,200 flow-through units ("FT Units") at a price of $0.165 per FT Unit for aggregate gross proceeds of up to $1,353,033 (the "Offering").
The Offering is expected to close later this month. The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals. All securities to be issued under the Offering will be subject to a four-month and a day statutory hold period in Canada.
Each FT Unit will consist of one "flow-through share", as defined in subsection 66(15) of the Income Tax Act (Canada) (the "Tax Act"), of Fancamp and one common share purchase warrant (a "Warrant"). Each Unit will consist of one common share of Fancamp and one-half of a Warrant. Each whole Warrant shall entitle the holder thereof to acquire one additional common share of the Issuer (on a non-flow-through basis) at a price of $0.25 until the date which is 12 months following the closing of the Offering.
As compensation for the services provided by the Finder, the Issuer will pay a cash finder's fee of 6% of the gross proceeds of the Offering raised by the Finder.
The Issuer intends to use the proceeds raised from the issuance of the FT Units to incur additional exploration expenditures on the Issuer's properties in the province of Quebec. Such exploration expenditures will constitute "Canadian exploration expenses" and "flow through mining expenditures", as defined under the Income Tax Act (Canada), which can be renounced to Canadian purchasers of the FT Units for the 2012 taxation year. FT Unit investors who are eligible residents of Quebec will also be entitled to receive Quebec provincial tax credits for qualified exploration expenditures.
The Company has also granted incentive stock options to directors for the purchase of up to 2,250,000 common shares in its capital stock, at a price of $0.20 per share, exercisable on or before December 17, 2017. The options are granted pursuant to the Company's stock option plan, under which a maximum of ten percent (10%) of the issued and outstanding common shares are reserved for issuance. Shares issuable upon exercise of the incentive stock options are subject to a 4 month TSX Venture Exchange hold period, commencing on the date the incentive stock options are granted.
ABOUT FANCAMP EXPLORATION LTD.
Fancamp Exploration Ltd. is a Canadian junior mineral exploration company with an exceptional inventory of resource projects, all in the exploration stage. In Quebec, there is the South Lamelee Iron Property resource, close to the operating Arcelor Mittal Fire Lake Mine and the adjoining Champion Minerals/Fancamp flagship Fire Lake North Project; as well as the promising Stoke Mountain Phelps Dodge Copper Zone; and other grass roots projects in the Quebec Appalachians.
Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Issuer's future plans, objectives or goals, including words to the effect that the Issuer or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.
Fancamp Exploration Ltd.
Peter H. Smith, PhD, P.Eng., Chairman and Director