Fancamp Exploration announces investment in rare earth element company NeoTerrex Corporation


VANCOUVER, British Columbia, December 23, 2021 (GLOBE NEWSWIRE) – Fancamp Exploration Ltd. (“Fancamp“or the”company“) (TSX Venture Exchange: FNC) is pleased to announce that it has entered into a Subscription Agreement (the”Agreement“) with NeoTerrex Corporation (“NeoTerrex“) in the context of an oversubscribed private placement of 46,844,000 ordinary shares (the Ordinary actions) at a price of $ 0.10 per share and 5,600,000 flow-through shares at a price of $ 0.125 in the share capital of NeoTerrex (the “”Offer“).

Pursuant to the Agreement, the Company subscribed for 8,932,000 common shares at a price of $ 0.10 of NeoTerrex, representing approximately 15% of the issued and outstanding shares of NeoTerrex after the completion of the offering.

Concurrently with the Agreement, the Company also entered into an Investor Rights Letter with NeoTerrex, pursuant to which, subject and in accordance with the conditions set forth therein, a candidate of the Company will join the board of directors of NeoTerrex. with one (1) seat out of a maximum of six (6). Fancamp will play an active role in supporting the company through its network and its strategic relationship.

The Company’s investment in NeoTerrex in connection with the Offering (the “Investment) Is not a “related party transaction” within the meaning of applicable securities legislation. Mathieu Stephens, director of the Company, is also a director and one of the founders of NeoTerrex. Therefore, Mr. Stephens abstained from voting as a director of the company on the investment.

NeoTerrex Corporation is a private rare earth elements (REE) exploration company that focuses on the development of high grade critical rare earth oxides exploration projects in Quebec and is expected to go public in 2022. The company has two key projects: Mount Discovery and Greenwinds. The geological database of the Government of Quebec (Sigeom) indicates the presence of high values ​​of critical rare earth elements neodymium and praseodymium, which are highly sought after light rare earth elements crucial in products such as engines, turbines and medical devices. The demand for them has exploded in recent years with the growth of technology and will continue to climb amid the ongoing race to create a large market for electric vehicles.

Company President and CEO Rajesh Sharma said: “This strategic investment in NeoTerrex will enable Fancamp to participate in the critical and strategic mineral supply chain that has grown in importance in reducing the dependence on foreign supply in North America. The governments of the United States and Canada have declared their strong support for the construction and development of strategic mineral projects to meet the growing demand for these minerals in order to satisfy the growing market and meet their net zero reduction goals. carbon. NeoTerrex is well positioned to be a targeted vehicle through which Fancamp could participate in the emerging rare earth exploration opportunity.

Fancamp has two Quebec properties with rare earth potential in its current portfolio.

About Fancamp Exploration Ltd. (TSX-V: FNC)

Fancamp is a growing Canadian mineral exploration company dedicated to its value-added strategy of advancing its priority mineral properties through exploration and innovative development. The Company owns numerous mineral resource properties in Quebec, Ontario and New Brunswick, including chromium, strategic rare earth metals, gold, zinc, titanium and more. Fancamp’s chrome properties in Northern Ontario’s coveted Ring of Fire are strategically located. Particular attention is paid to its properties in rare earth elements in Quebec. Fancamp has investments in an existing iron ore operation in the Quebec-Labrador Pit, in addition to an investment in a zinc mine scheduled to restart in Nova Scotia. Fancamp is developing energy reduction technology with its advanced titanium extraction strategy. The Company is managed by a focused management team with decades of experience in mining, exploration and complementary technology.

Forward-looking statements

This press release includes certain statements which are not historical facts and which constitute “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian securities laws. Forward-looking statements include estimates and statements that describe Fancamp’s future plans, objectives or goals, including words indicating that Fancamp or its management expects a condition or reported result to occur. Forward-looking statements may be identified by words such as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “could”, “will”, “anticipates” or “Will plan”. Because forward-looking statements are based on multiple factors, assumptions and deal with future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to Fancamp, Fancamp provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved in forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially or simply not to materialize from those expressed or implied by this forward-looking information. There can be no assurance that forward-looking statements will prove to be accurate and that actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Fancamp’s expectations include, among others, political, economic, environmental and permit risks, mining and development risks, litigation risks, regulatory restrictions, environmental and licensing restrictions and responsibilities, NeoTerrex’s inability to raise capital or obtain the necessary financing in the future, as well as the factors discussed in the section titled “Risks and Uncertainties” in the discussion and Fancamp’s management analysis of Fancamp’s financial statements for the period ended July 31, 2021. Although Fancamp has attempted to identify material factors that could cause actual results to differ materially, there may be other factors that may result in results not being as anticipated, estimated or expected. Fancamp considers its assumptions to be reasonable based on information currently available, but there can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Therefore, readers should not place undue reliance on forward-looking statements.

For more information

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.


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