March 3, 2016
Formation Metals Provides Corporate Update
- Final High Purity Cobalt Salts Metallurgical Report Received;
- Initial Product Specification Sheets Developed;
- Request for Proposals for Definitive Feasibility Study Requested
Vancouver, B.C., March 3, 2016, Formation Metals Inc. (FCO-TSX)
announces that it has received the final metallurgical test work report
on bench test production of cobalt sulfate heptahydrate crystals
suitable for the rechargeable battery sector produced from ore samples
from Formation’s Idaho Cobalt Project (“ICP”).
Results from this report have allowed management, in conjunction with
its team of engineers and metallurgists, to develop initial
specification sheets for two of its anticipated end products,
specifically cobalt sulfate heptahydrate crystals for use in the
rechargeable battery sector and a scalped copper concentrate suitable
for established smelters to process. With this information, Formation
intends to pursue potential offtake arrangements to assist in the
development of the ICP.
Samuel Engineering Inc. (“SE”) of Denver, C0, is the Company’s lead
engineer coordinating the metallurgical test work. SE previously
reported that based on the extensive metallurgical testwork results to
date, successful modifications to the Mill & Cobalt Production
Facility flowsheets and the recent results and commitments from critical
technology and equipment suppliers, the final end product is expected
to meet the quality standards for high purity cobalt sulfate chemicals.
These chemicals are required for the emerging rechargeable battery,
stationary storage and electric vehicle sectors. The development of the
initial specification sheet supports this initial assessment (see
Company News Release dated December 8, 2015).
The development of the modified flow sheets outlines a critical path
forward for the Company. SE has previously recommended that the project
development activities be advanced to support and produce a Definitive
Feasibility Study (“DFS”). The finalization of the modified flow sheets
allows for such advancement.
To that end, Requests for Proposals (“RFP”) to commission a DFS were
sent to numerous qualified engineering firms earlier this month, several
of which had previously indicated their interest in assisting Formation
with their DFS. The solicitation of bids for this definitive
engineering work is critical to defining a clear path forward for the
development, engineering, procurement and construction of the ICP.
Paul Farquharson, Formation’s President and CEO commented “Having the
spec sheets and flow sheets defined facilitates our moving forward with
pursuing offtake and other potential means to assist in the future
development of the ICP”, he continued, “These developments coincide with
an improved outlook for the cobalt markets with deficits expected this
year and increasing significantly into 2018 — previous deficit
situations in the cobalt market resulted in significant rises in the
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.
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
Formation Metals Inc.
“J. Paul Farquharson”
J. Paul Farquharson
President & C.E.O.
For further information please contact:
Formation Metals Inc., 1810 — 999 West Hastings Street, Vancouver, BC, V6C 2W2
Tel: 604-682-6229 - Email: firstname.lastname@example.org — Web: formationmetals.com
The Company cautions that the results from the metallurgical testwork
discussed in this news release is preliminary in nature, and is based on
technical and economic assumptions which will be evaluated in further
studies. The Preliminary Economic Assessment (“PEA”) report filed on
SEDAR on May 8, 2015 is based on the current (as at March 10, 2015) ICP
estimated resource model, which consists of material in both the
measured/indicated and inferred classifications. Inferred mineral
resources are considered too speculative geologically to have technical
and economic considerations applied to them outside the scope of a PEA.
The current basis of project information is not sufficient to convert
the mineral resources to mineral reserves, and mineral resources that
are not mineral reserves do not have demonstrated economic viability.
Accordingly, there can be no certainty that the results estimated in the
PEA will be realized.
In addition, this news release contains “forward-looking statements”
within the meaning of applicable Canadian securities legislation.
Statements in this news release pertaining to projected revenues and
cash flows, quantity and grade of mineralized materials, estimated
mineral prices and the continued expansion of the market for battery
grade cobalt chemicals are forward-looking statements. These
forward-looking statements are based on assumptions and address future
events and conditions and are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of the Company to be materially different
from those expressed or implied by such forward-looking statements.
Many of the assumptions respecting projected revenue, cash flow and
quantity of mineralized materials have been set out in detail in the
PEA. Such projections are and will inevitably always be dependent on
assumptions about future mineral prices and development costs which will
be subject to fluctuation due to global and local economic conditions.
This news release also contains forward-looking statements respecting
the growing demand for battery grade cobalt chemicals, which demand may
or may not continue to grow depending on consumer habits and
technological developments. Further information regarding risks and
uncertainties which may cause results to differ from those contained in
forward-looking statements is included in filings by the Company with
securities regulatory authorities and is available at www.sedar.com.
Although the Company has attempted to identify important factors that
could cause actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can be
no assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those anticipated
in such statements. Although the Company has disclosed that it has
successfully produced cobalt sulfate heptahydrate crystals on a bench
scale level, from cobalt solvent extraction strip solution from the
Company’s ICP, there is no guarantee that the Company will attain
commercial production of such crystals for use in the rechargeable
battery sector. Accordingly, readers should not place undue reliance on
forward-looking statements. The Company does not undertake to update
any forward-looking statements that are contained herein, except in
accordance with applicable securities laws.
The statements contained in this news release in regard to Formation
Metals Inc. that are not purely historical are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, including Formation Metals Inc.’s beliefs,
expectations, hopes or intentions regarding the future. All
forward-looking statements are made as of the date hereof and are based
on information available to Formation Metals Inc. as of such date. It
is important to note that actual outcome and the actual results could
differ from those in such forward-looking statements. Factors that could
cause actual results to differ materially include risks and
uncertainties such as technological, legislative, corporate, commodity
price and marketplace changes.
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News Release:December 8th, 2015, Formation Metals Successfully Produces High Purity Cobalt Salts for the Rechargeable Battery Sector in Bench Scale Tests
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News Release:May 4th, 2016, Formation Metals Announces $3 Million Private Placement