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by Will Purcell

The critical and specialty minerals stocks box score on Monday was a weak 66-97-157 as the TSX Venture Exchange rose four points to 825. John LaGourgue's First Canadian Graphite Inc. (FCI) rose four cents to 55 cents on 28,000 shares. The company said Friday that it intends to sell 3.45 million flow-through shares at 58 cents apiece, seeking up to $2-million to finance a coming field stripping and drilling program at its Lac Gueret South graphite project in the Baie-Comeau district of Quebec.

Word of that placement came just two days after First Canadian said it was offering 6.67 million regular shares at 45 cents each. That $3-million, the company said, is for working capital, and also for the coming field stripping and drill program. The difference, of course, is that the hard dollars can be spent at the graphite project, while the flow-through cash must be spent there -- or at least on some other Canadian resource project.

Mr. LaGourgue, president and chief executive officer, says that in the wake of the encouraging results from the company's summer prospecting and airborne surveying, "we're excited to begin testing the geology at Lac Gueret South with the drill bit." The summer program outlined a large, high-grade graphite system at Zone 13, Mr. LaGourgue says, adding that the financing "positions us to advance the project systematically, as planned."

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