Fairmont Closes Non-Brokered Private Placement
Fairmont Closes Non-Brokered Private Placement
– Momentum Public Relations – June 8th, 2016
Fairmont Resources Inc. (TSX VENTURE:FMR) (“Fairmont”) is pleased to announce it has closed its previously announced private placement (the “Private Placement”) by issuing 8 million units (the “Units”) at a price of $0.06 per Unit for gross proceeds of $480,000. Each Unit consists of one common share (a “Share”) and one half Share purchase warrant (a “Warrant”), with each full Warrant will entitle the holder to purchase one Share for a period of 12 months at an exercise price of $0.10 per Share (the “Warrant Term”).
Fairmont may accelerate the Warrant Term for the outstanding but unexercised Warrants such that the Warrant Term shall expire at 5:00PM Pacific Time on the day that is 30 calendar days after the date that Fairmont first issues the Acceleration Notice. In order to exercise the acceleration rights, (i) the average closing price must have been equal to or greater than $0.20 (subject to adjustment for forward or reverse stock splits, recapitalizations, stock dividends or other changes to Fairmont’s corporate or capital structure) for 10 consecutive Trading Days (the “10 Day Period”) prior to the date that Fairmont exercises the acceleration rights; and (ii) Fairmont must issue a news release announcing its intention to exercise the acceleration rights (the “Acceleration Notice”) within 5 business days after the end of the particular 10 Day Period relied upon by Fairmont in (i).
The securities issued under the Private Placement will be subject to a hold period expiring on October 9, 2016.
Due to strong investor demand, the Company was able to close its Private Placement quickly with 39 placees.
Under the Private Placement, Fairmont paid finder’s fees totaling $18,144 and issued 302,400 share purchase warrants. The finder’s share purchase warrants are on the same terms as the Warrants.
Proceeds of the private placement financing will be used for exploration work on Fairmont’s mineral properties, acquisitions and general working capital purposes.
About Fairmont
Fairmont Resources Inc. is a rapidly growing industrial mineral and dimensional stone company trading on the Toronto Venture Exchange symbol FMR.
Fairmont’s Quebec properties cover numerous occurrences of high-grade titaniferous magnetite with vanadium, with the Buttercup property having a permit to quarry dense aggregate. Where these occurrences have been tested they have display exceptional uniformity with respect to grade. Fairmont also controls three quartz/quartzite properties, with the Forestville property having independent end user testing confirming the suitability of quartzite from Forestville for Ferro Silicon production. Fairmont is also in the process of acquiring the assets of Granitos de Badajoz (GRABASA) in Spain which includes 23 quarries and a 40,000 square metre granite finishing facility that has produced finished granite installed across Europe.
- Published in Fairmont Resources, Mining, News Home
Fairmont Announces Rome Lithium Property Option
Fairmont Announces Rome Lithium Property Option and Online Marketing and Awareness Program
– Momentum Public Relations –
Fairmont Resources Inc. (TSX VENTURE:FMR) (“Fairmont”) announces that, subject to TSX Venture Exchange approval, it has negotiated an option agreement with a Quebec prospector (the “Optionor”) to acquire a 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} interest in the Rome Lithium property, near Val d’Or, Quebec (the “Property”). Accordingly, Fairmont (the “Optionee”) will issue to the Optionor 500,000 shares upon TSX approval and paid the Optionor $25,000 upon a future successful financing.
In order to exercise the balance of the option, Fairmont will be required to (i) issue 500,000 shares on or before the 6 month anniversary of the TSX Venture approval date; (ii) issue 500,000 shares on or before the 12 month anniversary of the TSX Venture approval date; and (iii) incur $150,000 of exploration expenditures within 36 months, $50,000 within the first 12 months after the TSX approval date. The Property will be subject to a 2{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Production Royalty per tonne. The Optionee may purchase one half of the Production Royalty (1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}) for one million dollars (Canadian) at any time.
The Rome Lithium property is located approximately 60 km north of Val d’Or Quebec.
The property is contiguous to the north and south of RB Energy’s Quebec Lithium Mine with a published measured and indicated resources (at a 0.60{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Li2O cutoff) of 41,556,000 tonnes at 1.09{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Li2O, and an inferred resource of (at a 0.60{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Li20 cutoff) of 17,766,000 million tonnes at 1.10{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Li2O (RB Energy Press Release of October 11, 2012).
The property is also contiguous to Jourdan Resources Vallee Lithium property that drilled more than 4000m of core in 2011 and intersected more 100 pegmatite and aplite dikes. Jourdan Resources intersected values of up to 1.187{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Li2O over 5.50m (Jourdan Resources Press Release of October 24, 2012).
This option is subject to TSX Venture Exchange approval.
Fairmont Launches AGORACOM Online Marketing and Awareness Program
Fairmont is also pleased to announce that it is implementing an online marketing and awareness program through AGORACOM.
The Company will receive significant exposure through millions of content brand insertions on the AGORACOM network and extensive search engine marketing over the next 12 months. In addition, exclusive sponsorships of invaluable digital properties such as AGORACOM TV, the AGORACOM home page and the AGORACOM Twitter account will serve to significantly raise the brand awareness of the Company among small cap investors.
Fairmont’s President and CEO Michael Dehn stated, “AGORACOM Has proven to be a leader in the online marketing space. We are delighted to have retained their services to expand our online presence.”
Shares for Services Program
Fairmont intends to issue shares for services to AGORACOM in exchange for the online advertising, marketing and branding services (“Advertising Services”). Pursuant to the terms of the agreement, the company will be issuing:
- $10,000 + HST Shares For Services April 30, 2016 for prior preparation of program
- $10,000 + HST Shares For Advertising Services at end of Third Month July 15, 2016
- $10,000 + HST Shares For Advertising Services at end of Sixth Month October 15, 2016
- $10,000 + HST Shares For Advertising Services at end of Ninth Month January 15, 2017
- $8,800 + HST Shares For Advertising Services at end of Twelfth Month April 15, 2017
The number of shares to be issued at the end of each period will be determined by using the closing price of the Shares of Fairmont on the TSX Venture Exchange on the first trading day following each period for which the Advertising Services were provided by AGORACOM.
The agreement/arrangement is subject to TSX Venture Exchange approval.
The term of the Agreement is for 12 months effective immediately. Fairmont will issue a press release after the issuance of shares under the terms of the agreement.
About AGORACOM
AGORACOM is the pioneer of online investor relations, online conferences and online branding services to North American small and mid-cap public companies, with more than 250 companies served. More than just lip service, AGORACOM is the home of more than 808K investors that visited 5.6 million times and read 52.4 million pages of information every year (Average 2008 – 2015).
AGORACOM traffic ranks within the top 0.5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of all websites around the world. These traffic results are independently tracked and verified by Google analytics. AGORACOM traffic can be attributed to its strategy of maintaining the cleanest, moderated small-cap discussion as a result of implementing the first ever Investor Controlled Stock Discussion Forums.
AGORACOM Founder, George Tsiolis, publishes the leading blog on small to mid-cap investor relations. His 50 Small-Cap CEO Lessons are a must read for CEO’s looking to increase their education and knowledge about online investor relations.
About Fairmont
Fairmont Resources Inc. is a rapidly growing industrial mineral and dimensional stone company trading on the Toronto Venture Exchange symbol FMR.
Fairmont’s Quebec properties cover numerous occurrences of high-grade titaniferous magnetite with vanadium, with the Buttercup property having a permit to quarry dense aggregate. Where these occurrences have been tested they have display exceptional uniformity with respect to grade. Fairmont also controls three quartz/quartzite properties, with the Forestville property having independent end user testing confirming the suitability of quartzite from Forestville for Ferro Silicon production. Fairmont is also in the process of acquiring the assets of Granitos de Badajoz (GRABASA) in Spain which includes 23 quarries and a 40,000 square metre granite finishing facility that has produced finished granite installed across Europe.
- Published in Fairmont Resources, Mining, News Home
Canadian Industrial Mineral Company Prepares for Major European Expansion
Fairmont Resources Prepares for European Expansion with Acquisition of Grabasa Assets
– Momentum Public Relations – Dana Hinders
Fairmont Resources (FMR:tsxv), a prominent Ontario-based industrial mineral and dimensional stone company, wants to become the go-to supplier of dense aggregate, quartzite for ferrosilicon, and granite. To further this goal, they announced plans to acquire the assets of Grabasa (Granitos de Badajoz S.A) from a Spanish court-appointed receiver.
Based in Badajoz, Grabasa operated from 1975 to 2011. The company once served as a primary driver of economic activity in Spain’s Extremadura region. Grabasa was thriving in the early 2000s, undergoing a significant production expansion between 2008 and 2010. Unfortunately, their expansion coincided with the Euro crisis. Eventually, the falling Euro caused the company to be unable to meet its debt obligations. This forced Grabasa into receivership and locked its assets in court proceedings for several years.
During the company’s final five years of operation, Grabasa’s sales of premium dimension stone for European industrial, commercial, and retail and industrial applications averaged EUR 6 million annually. In 2011, average monthly sales were EUR 371,475 and operating costs were EUR 217,600.
The Grabasa acquisition is consistent with Fairmont’s philosophy of building long term cash flow by ramping up production on strategically located projects. Grabasa brings several vital assets into play for Fairmont, including a fully operational processing and finishing facility with 250,000 square meters of annual production capacity. The facility also contains over EUR 2.2 million in state-of-the-art cutting and polishing equipment.
Under the terms of the deal, Fairmont will also gain access to an operational fleet of mining and quarrying equipment as well as 23 premium granite quarry licenses. The licenses are significant because of their location: 18 of the 23 are within 8 kilometres of the processing plant, with the remaining five within 20 kilometres.
With assets from Grabasa, Fairmont will become one of the largest granite producers in Europe. Fairmont plans to restart production at the facility, increasing the previous annual gross operating margin of 30{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} to 40{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} through targeted optimization of staff and equipment. Executives also want to increase sales by strategically targeting undervalued North American and Asian markets.
The total cost of the Grabasa purchase is EUR 4.275 million. The acquisition will be paid for via a combination of debt and equity financing, with the terms to be announced at a later date. Madrid-based Eureka Trading has already paid a deposit of EUR 60,000 on Fairmont’s behalf to secure the transaction. Procana Consulting of Markham, Ontario has also assisted with the transaction and will split a EUR 575,000 payment with Eureka Trading for expenses such as due diligence, translation, negotiation, and court costs.
Although Fairmont’s ability to obtain the capital necessary to commence production and complete the Grabasa acquisition has yet to be verified, the company’s world-class collection of assets continues to attract attention from major end users of industrial minerals throughout the world. Therefore, Fairmont’s future looks bright as it progresses towards commercial production.
Since Fairmont specializes in industrial minerals, its investments have less long term volatility and risk in project development. When compared to precious minerals, industrial minerals have lower pricing variances, easier permitting, and fewer overall development costs. The industrial minerals Fairmont mines are used in applications for infrastructure, agricultural, chemical, and metallurgical projects.
In addition to the assets that are part of the Grabasa purchase, Fairmont controls numerous areas of high-grade titaniferous magnetite with vanadium and three quartz/quartzite properties in Quebec: one near Lac Saint Jean and two along the North Shore of the St. Lawrence River. The Forestville and Baie-Comeau quartzite properties were acquired in January 2015 and optioned with the goal of using quartzite as a raw material for silica metal, high purity glass, fibre optics, and ferrosilicon.
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- Published in Blog, Fairmont Resources, Mining