Focus Graphite: Update on Status of PEA and Bi-Weekly Default Status Report
OTTAWA, ONTARIO -- (Marketwire) -- 10/12/12 -- Focus Graphite Inc. ("Focus" or the "Company") (TSX VENTURE: FMS)(OTCQX: FCSMF)(FRANKFURT: FKC) announced on September 10, 2012 that it had reviewed and clarified the technical disclosure regarding its Lac Knife Project (the "Project") after having been notified by the Ontario Securities Commission (the "OSC") of its recent selection for a review of its continuous disclosure record, the whole conducted under Section 20.1 of the Securities Act (Ontario). On September 25, 2012, the Company further announced that, following a review of the Company's disclosure on the Project, the OSC had issued a Management Cease Trade Order ("MCTO") that prohibits all trading of the securities of the Company by the Chief Executive Officer and the Chief Financial Officer.
On October 5, 2012, the MCTO was confirmed by the OSC and will stay in effect until two (2) full business days following the receipt by the OSC of all filings Focus is required to make under Ontario securities law, or further order of the Director. A copy of the MCTO is available on the Company's website at www.focusgraphite.com.
For the Company, this will involve the filing of a technical report prepared in accordance with National instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") to support its previous disclosure of the outcomes of a study that includes an economic analysis of the potential viability of mineral resources on the Project. On October 2, 2012, the Company issued a news release to provide an update on the timing of the release of its NI 43-101 compliant Preliminary Economic Assessment ("PEA") and supporting technical report (the "Technical Report") for its Project. As announced, Roscoe Postle and Associates ("RPA") is completing the PEA and Technical Report on the Project.
The Company is presently in default because of its failure to file the Technical Report under NI 43-101 and will continue to be in default until such time as it files the required report on the Project. In its application to the OSC for the issuance of an MCTO, the Company confirmed its agreement to implement a plan to remedy the default by filing the Technical Report by October 31, 2012. The Company therefore wishes to clarify its release of October 2nd as this deadline is not a specific requirement of the OSC but a statement of the Company's intent to file the PEA and Technical Report by no later than October 31, 2012.
In compliance with the alternative information guidelines set out in National Policy 12-203 - Cease Trade Orders for Continuous Disclosure Defaults ("NP 12-203") for issuers who have failed to comply with a specified continuous disclosure requirement within the times prescribed by applicable securities laws, Focus issued today a default status report by way of present press release announcing that the Company continues to actively monitor the situation with the objective of filing the PEA and Technical Report at the latest on October 31, 2012. The Company will issue a press release announcing the results of the PEA as soon as they become available and have been authorized for release by RPA, and will promptly thereafter file the supporting documentation on SEDAR.
Until Focus completes the filing of the PEA and Technical Report, and until the MCTO is subsequently lifted by the OSC, Focus will comply with the alternative information guidelines set out in NP 12-203. The guidelines, among other things, require the Company to issue bi-weekly default status reports by way of a news release so long as the PEA and Technical Report have not been filed.
The Company reports that since its original announcement on September 10, 2012 in respect of the notice of default received from the OSC and its subsequent announcement on September 25, 2012 relating to the issuance of the MCTO (collectively, the "Notice"), there has not been any material changes to the information provided in the Notice other than as described herein nor any failure by the Company in fulfilling its stated intentions with respect to satisfying the alternative information guidelines required pursuant to NP 12-203. In addition, there has not been any other specified default by the Company under NP 12-203, nor are any anticipated and there is no other material information concerning the affairs of the Company that has not been generally disclosed.
About Focus Graphite
Focus Graphite Inc. is an emerging mid-tier junior mining development company, a technology solutions supplier and a business innovator. It is the owner of the Lac Knife project containing an NI 43-101 compliant resource estimate grading 16% carbon as graphite. The company's goal is to assume an industry leadership position by becoming a low-cost producer of technology-grade graphite. As a technology-oriented enterprise with a view to building long-term, sustainable shareholder value, Focus Graphite is invested in the development of graphene applications and patents through Grafoid Inc.
Forward Looking Statements - Disclaimer
This news release may contain forward looking statements, being statements which are not historical facts, and discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Company's expectations are in our documents filed from time to time with the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com Focus Graphite disclaims any intention or obligation to revise or update such statements.
Neither 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 release.
Contacts:
Mr. Gary Economo
President and Chief Executive Officer
613-691-1091, ext. 101
geconomo@focusgraphite.com
www.focusgraphite.com