First Canadian Graphite arranges financings

Executive Summary

• First Canadian Graphite Inc. announced two distinct financing transactions: a $225,000 hard-dollar financing and a $300,000 flow-through financing, totaling up to $525,000 in gross proceeds.
• The hard-dollar financing involves the issuance of up to 1.5 million units at 15 cents each, comprising one common share and one warrant exercisable at 20 cents. Proceeds are designated for general working capital.
• The flow-through financing involves the issuance of up to 1.5 million flow-through units at 20 cents each, comprising one flow-through common share and one-half warrant exercisable at 25 cents. Proceeds are designated for exploration expenses on the Berkwood graphite project.

Key Details

• Hard-Dollar Financing Structure:
  • Units: Up to 1.5 million units.
  • Price: 15 cents per unit.
  • Gross Proceeds: Up to $225,000.
  • Composition: Each unit consists of one common share and one warrant.
  • Warrant Terms: Exercisable at 20 cents per share for a period of two years.
  • Use of Proceeds: General working capital (subject to board discretion for reallocation).
• Flow-Through Financing Structure:
  • Units: Up to 1.5 million flow-through units.
  • Price: 20 cents per unit.
  • Gross Proceeds: Up to $300,000.
  • Composition: Each unit consists of one flow-through common share and one-half warrant.
  • Warrant Terms: Each whole warrant entitles the holder to purchase one common share, exercisable at 25 cents per share for a period of two years.
  • Use of Proceeds: Exploration expenses on the Berkwood graphite project (subject to board discretion for reallocation).
• Regulatory and Legal Conditions:
  • Closing is subject to receipt of all necessary regulatory approvals, including from the TSX Venture Exchange.
  • Securities are subject to a hold period ending four months plus one day following the date of issue.
  • A finder's fee may be payable in accordance with TSX Venture Exchange policies.
  • The two financings are explicitly stated as not being part and parcel.
• Berkwood Project Resource Data:
  • Location: Manicouagan regional county municipality, Quebec (3 hours from Baie-Comeau).
  • Proximity: Zone 1 resource is 8 km southwest of Nouveau Monde's deposit.
  • Indicated Resources: 1,755,300 tonnes at 17.00% Cgr.
  • Inferred Resources: 1,526,400 tonnes at 16.39% Cgr.
  • Technical Report: NI 43-101 Technical Report Mineral Resource Estimate on the Lac Gueret South Graphite Property, Quebec, Canada, effective June 30, 2019, prepared by Edward Lyons, PGeo, Florent Baril, Ing, and Claude Duplessis, Ing.