Property option, private placement, and new senior mgmt2013-09-23 07:49 ET - News Release Mr. Michael Dehn reports
FAIRMONT TO OPTION ELAN LAKE ILMENITE-MAGNETITE PROPERTY, ANNOUNCES NON-BROKERED PRIVATE PLACEMENT FINANCING AND NEW SENIOR MANAGEMENT
Fairmont Resources Inc. has signed a binding letter of intent with ElanOre Resources Inc. to option a 40-per-cent interest in the Lac Elan property. Fairmont also announces that it plans to complete a non-brokered private placement financing of $1-million. Additionally, Michael Dehn will be joining Fairmont as president, chief executive officer and a director. Neil Pettigrew has stepped down as an officer of Fairmont, but continues as a director.
Lac Elan ilmenite-magnetite property option agreement
To acquire 40 per cent of the property, Fairmont will issue 1.5 million shares within five days of the TSX Venture Exchange's final approval. Fairmont must also spend $300,000 in exploration or development expenditures on the property within 24 months of the effective date of the formal agreement, with a minimum $100,000 being incurred before the first anniversary of the effective date of the formal agreement, and the balance before the second anniversary of the effective date of the formal agreement. The 388.5-square-kilometre Lac Elan property, located near Sageunay, Que., was and staked between 2009 and 2011. Surface sampling, trenching and prospecting have produced consistent iron and titanium analysis over a considerable strike length with values up to 56.88 per cent Fe2O3, 16.93 per cent TiO2 and 0.42 per cent V2O5 over 18.5 metres in trench sampling.
A finder's fee will be payable in accordance with the policies of the TSX Venture Exchange.
Proposed $1-million private placement financing
Fairmont is also pleased to announce a private placement of $1-million in units. Each unit consists of one share and one share purchase warrant at a price of 10 cents per unit. Each warrant will entitle the holder to purchase one share for a period of 12 months at an exercise price of 20 cents per share.
Fairmont may accelerate the warrant term for the outstanding but unexercised warrants such that the warrant term shall expire at 5 p.m. 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 VWAP must have been equal to or greater than 30 cents (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 prior to the date that Fairmont exercises the acceleration rights; and (ii) Fairmont must issue a new release announcing its intention to exercise the acceleration rights within five business days after the end of the particular 10-day period relied upon by Fairmont in (i).
A finder's fee will be payable on the private placement, subject to the policies of the TSX Venture Exchange.
Proceeds of the private placement financing will be used for exploration work on Fairmont's mineral properties and general working capital purposes.
New chief executive officer and president
Effective Sept. 23, 2013, Mr. Pettigrew has resigned as an officer of Fairmont. Fairmont wishes to thank Mr. Pettigrew for his dedication to Fairmont during his undertaking. Mr. Pettigrew will continue as a director of Fairmont.
Mr. Dehn has been appointed president, chief executive officer and director of Fairmont, effective Sept. 23, 2013. Mr. Dehn brings with him more than 20 years of experience in the exploration and development of minerals properties. Mr. Dehn's expertise as the former president and chief executive officer of Argex Mining Inc. (now Argex Titanium Inc.) in the titanium and vanadium space will allow Fairmont to accelerate the Lac Elan project.
Neil Pettigrew, MSc, PGeo, director of Fairmont Resources and the company's qualified person as defined by National Instrument 43-101, has reviewed and approved the technical information in this press release.
We seek Safe Harbor.
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