| Formation Metals Announces $3 Million Private Placement | |
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Vancouver, B.C., May 4, 2016, Formation Metals Inc. (FCO-TSX) (the 'Company' or 'Formation') announces today that it has entered into an agreement with Dundee Securities Ltd. (the 'Agent') under which the Agent has agreed to offer for sale, on a 'best efforts' private placement basis, units of the Company (the 'Units') at a price of C$0.30 per Unit for total gross proceeds of up to approximately C$3,000,000 (the 'Offering'). Each Unit shall consist of one common share of the Company (a 'Share') and one-half of one common share purchase warrant (each full warrant, a 'Warrant'). Each Warrant shall entitle the holder thereof to acquire one Share at a price of C$0.40 for a period of 24 months following the Closing Date.
The closing of the Offering is expected to occur on or about May 25, 2016 and is subject to the completion of formal documentation and receipt of regulatory approvals, including the approval of the Toronto Stock Exchange. The Units issued in connection with the Offering will be subject to a statutory hold period in accordance with applicable securities legislation.
The Company intends to use the net proceeds of the Offering to fund bankable feasibility level technical studies of the Company's Idaho Cobalt Project and for general working capital purposes.
About Formation Metals Inc.
Formation Metals Inc.'s primary asset, the Idaho Cobalt Project, remains the sole, near term, fully environmentally permitted, primary cobalt deposit in the United States and offers a unique potential for North American consumers to secure an ethically sourced, environmentally sound supply of battery grade cobalt chemicals, mined safely and responsibly in the United States. www.formationmetals.com. E.R. (Rick) Honsinger, P.Geo., Vice President of the Company, is the Qualified Person as defined by National Instrument 43-101 who has supervised the preparation of this news release and has approved its contents.
Formation Metals Inc.
'J. Paul Farquharson'
J. Paul Farquharson
President & C.E.O.
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VanEck Vectors Global Alternative Energy ETF
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DEVELOPMENT STAGE |
CODE : FCO.TO |
ISIN : CA34637V1013 |
CUSIP : 34637L |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Formation Metals is a cobalt development stage company based in Canada. Formation Metals develops cobalt, copper and gold in USA, and holds various exploration projects in Canada. Its main asset in development is IDAHO COBALT PROJECT in USA and its main exploration properties are QUEEN OF THE HILLS in USA, COMPASS LAKE, KERNAGHAN LAKE, BIG CREEK HYDROMETALLURGICAL COMPLEX, VIRGIN RIVER, BLACK PINE and MORNING GLORY in Canada and EL MILAGRO in Mexico. Formation Metals is listed in Canada, in Germany and in United States of America. Its market capitalisation is 27.0 millions as of today (US$ 20.8 millions, € 18.6 millions). Its stock quote reached its highest recent level on June 05, 1998 at 9.94, and its lowest recent point on June 14, 2013 at 0.06. Formation Metals has 47 442 200 shares outstanding. |