Focus Graphic announces $3.5 million bought deal financing
Focus Graphite Inc. [FMS-TSXV, FCSMF-OTCQX, FKC-Frankfurt] has announced details of a $3.5 million bought deal financing. The company said the net proceeds from the offering will be used for temporary working capital float, payments required before reimbursement, technical and qualification materials associated with the Government of Canada’s Global Partnership Initiative and general corporate purposes.
On November 3, 2025, the company announced that it had been selected by Natural Resources Canada (NRCan) under the Global Partnership Initiatives for conditional approval for a non-repayable contribution of up to $14 million, pending final due diligence. The funding, announced at the G7 Energy and Environment Ministers’ Meeting, unites Canadian, Ukrainian, and American partners to produce ultra-high-purity graphite using Electrothemal Fluidized Bed Technology for global battery, defence and advanced-material markets.
Meanwhile, the company said an underwriter has agreed to purchase on a bought deal basis 8.3 million units priced at 42 cents per unit. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one common share at an exercise price of 60 cents for 30 months after closing which is expected to occur on the week of December 8, 2025.
The underwriter has been granted the option to increase the size of the offering by up to an additional number of units equal to 15% of the total number of units issued in the offering. That option can be exercise at any time up to 48 hours prior to closing.
Focus Graphite shares on Friday rose 3.15% or $0.05 to 49 cents. The shares trade in a 52-week range of 76 cents and $0.07.
Back in March 2023, Focus announced the results of a feasibility study update for the Lac Knife project, the company’s 100%-owned, high-grade crystalline flake graphite deposit located about 27 kilometres southeast of Fermont in the Cote-Nord administrative region of Quebec.
The feasibility study update is based on a 27-year mine life and produced a pre-tax net present value of $500.9 million calculated at a discounted cash flow rate of 8.0% pre-tax, the financial model has an internal rate of return of 28.7% and a capital payback period of 2.8 years.
Results from the study indicate that the project is viable economically with a base case scenario that includes a concentrator production line rate of 47,781 tonnes of flake graphite concentrate annually at an average mill feed rate of 365,320 tonnes per year of mineral reserves over a 27-year mine life. A concentrator availability of 93% was used for the study. Also, the initial capital expenditure is pegged at $236.5 million.
“This feasibility study update marks a new significant milestone in the development of the Lac Knife Project,’’ said the company’s former CEO Marc Roy. “It confirms that the project hosts a graphite deposit with an average graphitic carbon (Cg) grade of 99.7% in +80 mesh concentrate, which is exceptional in this industry.’’