Fancamp acquires Gouin East option for $35,000, shares

Nov 11, 2019

2019-11-11 10:38 ET – News Release

Mr. Peter Smith reports

FANCAMP SIGNS OPTION TO ACQUIRE 100% INTEREST IN A HITHERTO UNKNOWN MAJOR ALKALINE CARBONATITE COMPLEX LOCATED IN CANADA’S GRENVILLE PROVINCE, AND REPORTS ON ITS RECENT AGM RESULTS.

Fancamp Exploration Ltd. has acquired an option to purchase a 100-per-cent interest in the Gouin East alkaline carbonatite complex, located approximately 120 kilometres west of St. Felicien in Quebec’s Lac Saint Jean, Saguenay, region.

This is a brand-new discovery and has never been explored; rather remarkable, given its size and proximity to infrastructure, 75 km from rail and 25 km from a major power line corridor. In size and aeromagnetic characteristics (a strong magnetic low), it is directly comparable with that underlying the operating Niobec mine, one of three major niobium producers in the world, located 215 km to the east. It is, moreover, in the same geologic environment and represents, in an exploration sense, an extremely rare opportunity.

The principal target measures approximately four km by seven km; about 30-per-cent larger than Niobec’s magnetic low signature. No outcrop is present in the core of the structure, which is covered by a flat sand plain. Current lumbering activities, however, have exposed scattered blocks of syenite, carbonatite and carbonate-rich alkaline intrusion material, one block of which assayed 0.54 per cent Nb2O5 (niobium pentoxide). Marginal outcrops show the presence of radiating pink syenite dikes from which a maximum value of 0.1 per cent Nb2O5 was obtained by assay (reference: Jean Laforest, PGeo, 2019).

The acquisition also includes a second, circular intrusive complex of similar scale, approximately 30 km to the southwest, with a distinctive, strong magnetic signature, quite different from that of the main target. As with the main target, no previous work has been reported. This target was noticed early in the company’s due diligence process, was included in the option package and is here referred to as the Gouin West target.

This option enlarges further on a company focus on strategic metals so critical to the development of 21st-century technologies. For example, continuing work on its Baude Lake rare earth elements property is showing interesting recovery results, to be reported on, and geological reconnaissance on this property indicates potential for expansion. The alkaline carbonatite acquisition is very much a part of this framework.

The terms of the option agreement

Subject to regulatory approval, the company is obliged to pay $35,000, issue one million fully paid common shares of Fancamp and spend $200,000 in the first year of the agreement. All subsequent commitments are optional. To earn a 100-per-cent interest the company must pay the vendor an additional $400,000 cash, spend $1-million in exploration and issue an additional fully paid two million common shares of Fancamp by the end of the third year of the agreement. Additional payments will comprise $150,000 cash (or issuance of two million fully paid common shares of Fancamp, at the company’s choice) on the reporting of a National Instrument 43-101 resource and, finally, a $500,000 cash payment on receipt of a feasibility study. A 2.5-per-cent net smelter return royalty will be retained by the vendor, of which 1.5 per cent can be bought back for $2-million.

The company also wishes to report the results of the annual general meeting held on Oct. 30, 2019, in Montreal. Approximately 24 per cent of the 153,951,629 shares outstanding were voted, with the following approval numbers for the four confirmed directors: Peter H. Smith — 90.4 per cent, Paul Ankcorn — 92.5 per cent, Mark Billings — 92.5 per cent and Ashwath Mehra — 92.5 per cent. Both the stock option plan and the auditor were confirmed. The corporate team now consists of Mr. Billings, CFA, MBA, chairman of the board, Dr. Smith, PhD, PEng, president and chief executive officer, Debra Chapman, chief financial officer, Mr. Ankcorn and Mr. Mehra, directors, and Sebastien Vezina, LLB, corporate secretary. The company’s substantial working capital position and access to first-class technical expertise in Dallas Davis, PEng, Jean Bernard, PGeo, Blaine Webster, PGeo, and Enrico Di Cesare, the company’s Tio2 industrial synergy route manager, points to a bright future.

The technical aspects of this release have been written by the company’s qualified person, Mr. Bernard, PGeo.

About Fancamp Exploration Ltd.

Fancamp is using a value-added strategy based on the acquisition of potentially valuable assets, adding value through the selection process itself and subsequent development work, self-financed or otherwise, followed by disposition, proceeds from which are used to finance the same process multiple times. The company has an exceptional inventory of resource properties in Quebec, Ontario and New Brunswick; commodities of interest include gold, rare earth elements, strategic metals, base metals, chromium, titanium, iron and silica.