Wednesday, May 11, 2011

Focus Metals should be ready to announce the closing of their $20M financing

Focus Metals (TSXV:FMS) should be ready to release news pertaining to the closing of their latest financing. The details of this financing are contained in the news release dated April 15, 2011,

From conversations with management, it appears that quite likely we can expect that the $15M was fully subscribed , with the optional $5M also being taken. If in fact this is true that will leave Focus with $20M in the till. With the recent news of Focus retaining Roscoe Postle Associates, the fact that the scoping study and NI 43-101 should be nearing completion in the coming weeks, and that management would like to do more drilling, would lead us to believe that Focus is remaining quite dedicated to bringing this project to production as quickly as possible.

Mr. Gary Economo, CEO of Focus Metals, was in Europe last month and attended meetings involving financing talks along with preliminary meetings involving take-off agreements. No further word has been released on the take-off agreements, but I would expect this will be forthcoming in the near future.

Once news is released of the financing being closed successfully I would expect some interest will be shown by the larger investors. Overall I think that the management of FMS has proven their dedication and desire to unlock as much value in this company as possible, and I foresee them continuing on this dedicated mission to bring Focus Metals up to the point of becoming a world class gaphite miner and supplier.

For disclosure purposes I have received no compensation of any kind for this post. I currently own shares in FMS and have recently added to my holdings.

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