- Focus Graphite (FMS) has sold its 100 per cent interest in the Eastmain-Léran Project to a third-party purchaser
- The company has received the first payment of C$500,000, which will be followed by three varying future cash instalments
- The Eastmain-Léran Project consists of two neighbouring properties in Quebec’s eastern Eeyou Istchee James Bay area
- The company believes the sale will allow it to focus on the remaining projects in its development pipeline
- Focus Graphite (FMS) is down 16.67 per cent and is currently trading at 2.5 cents per share
Focus Graphite (FMS) has sold its 100 per cent interest in the Eastmain-Léran Project to a third-party purchaser.
The Eastmain-Léran Project is one of the company’s non-graphite related property assets. The project consists of two neighbouring properties, located in northern Quebec’s eastern Eeyou Istchee James Bay territory.
As such, the project sits just 37 kilometres south of Stornoway Diamonds’ Renard diamond mine. It is also just 10 kilometres east of the Otish Mountains access road.
Focus Graphite has already received the initial closing cash payment of C$500,000 from the unidentified purchaser. By December 1, 2021, the company will receive a second cash payment, also of $500,000.
By December 1 , 2022, a third cash payment of $500,000 will be made as part of the consideration. Finally, Focus Graphite will receive the last cash payment of $800,000 by December 1, 2023.
However, the purchaser has the right to pay a portion of the post-closing instalment in the form of shares. This can apply to a maximum of 50 per cent of the post-closing instalment.
Focus Graphite will retain a 0.5 per cent net smelter royalty on the Eastmain-Léran/Alta Option, and a 2.5 per cent net smelter royalty on the Eastmain-Léran/Staked property.
The purchaser can buy these royalties at any time, by paying $125,000 for the first property, and $625,000 for the second.
Focus Graphite’s CEO, Marc Roy, commented on what the sale of the Project will bring to the company.
“We are very pleased today to announce the completion of the asset purchase agreement to sell Focus Graphite’s 100 per cent interest in the Eastmain-Léran Project to a third party.
“We believe the sale of this asset will unlock significant value to our shareholders and allow Focus Graphite to prioritise its resources on the remaining projects in the company’s development pipeline,” he said.
Focus Graphite (FMS) is down 16.67 per cent and is trading for 2.5 cents per share at 9:56am EDT.