First Canadian closes $2.76-million private placement

Executive Summary

• First Canadian Graphite Inc. has closed a private placement offering of 9,227,000 units, raising gross proceeds of $2,768,100.
• The offering was oversubscribed by $168,100, with each unit consisting of one common share and one-half warrant.
• Proceeds are designated for general working capital and an exploration/drill program on the Berkwood graphite project in Northern Quebec.

Key Details

• Transaction Structure: 9,227,000 units issued at $0.30 per unit.
• Gross Proceeds: $2,768,100.00.
• Oversubscription: The offering was oversubscribed by $168,100.
• Warrant Terms: Each unit includes one-half warrant. Each whole warrant entitles the holder to purchase one common share at an exercise price of $0.50 for a period of two years.
• Use of Proceeds: General working capital and an exploration and drill program on the Berkwood graphite project in Northern Quebec. Funds may be reallocated at the Board's discretion for sound business reasons.
• Insider Participation: Three insiders subscribed for an aggregate of 270,000 units. This constitutes a related-party transaction under Multilateral Instrument 61-101 but is exempt from formal valuation and minority shareholder approval requirements as the value does not exceed 25% of market capitalization.
• New Insider: A new insider position was created via an investor subscribing for 750,000 units.
• Finder’s Fees: $38,802.02 in cash and 125,440 finder warrants (exercisable at $0.50 for two years) were agreed upon.
• Regulatory Status: The company will apply to the TSX Venture Exchange for approval to close the financing and issue securities.
• Hold Period: Securities are subject to a hold period ending four months plus one day following the date of issuance, plus applicable U.S. resale restrictions.

Notable Quotes

• None provided in the text.