October 11, 2013
Formation Metals Secures Proceeds of US$12 Million From Sale of Refinery
Vancouver, B.C. October 11, 2013, - Formation Metals Inc. (FCO-TSX)
(“Formation” or the “Company”) announced today that it has completed
the sale of all of the shares of its indirect wholly-owned subsidiary
Formation Metals, U.S. (“FMUS”), whose primary asset is the Sunshine
Precious Metals Refinery (the “Refinery”), to Silver Opportunity
Partners LLC, a wholly owned subsidiary of Sunshine Silver Mines,
(“SSM”) for US$12 million cash (the “Sale”) as per the Company’s news
release dated September 16, 2013.
Cormark Securities Inc., financial advisor to the board of directors of
Formation (the “Board”), had previously provided an opinion to the Board
that the consideration received under the Sale is fair, from a
financial point of view, to Formation’s shareholders.
In addition, yesterday the Company repaid in full the US$5 million
Senior Secured Convertible Note held by a strategic private investor
(see Company News Release dated October 17, 2012).
“The Company is now debt free and these additional funds will assist the
Company’s efforts to review strategic opportunities”, stated Mari-Ann
Green, C.E.O. of Formation Metals Inc. She continued, “The Company is
reviewing opportunities that could include acquisitions, mergers, joint
ventures, strategic investments or any combination thereof with a view
to enhancing shareholder value”.
The Company’s flagship project, the Idaho Cobalt Project (the “ICP”), is
a fully permitted primary cobalt deposit unique to the Americas that is
fundamentally prepared for the commencement of underground development.
The Company announced on May 2, 2013, that is was deferring the
underground development of the ICP until the market conditions improve
and mine financing options for the ICP are more attractive for all
Cobalt continues to be in the news exhibiting an overall upward trend in
prices in response to political unrest in the DRC and falling nickel
prices wordwide. Cobalt is produced primarily as a by-product of nickel
and copper mining and any disruption in those operations would lead to a
corresponding decline in cobalt supply.
Formation is a well-established mineral exploration and development
company that owns 100% of a fully permitted primary cobalt deposit
located in Idaho which has been prepared for the commencement of
underground development, pending additional mine financing. Formation
has additional interests in base, precious metal and uranium projects in
Canada, the United States and Mexico. Formation is dedicated to the
principles of environmentally sound mining and refining practices, and
believes that environmental stewardship and mining can co-exist. The
Company trades on the Toronto Stock Exchange under the symbol FCO.
Formation Metals Inc.
For further information please contact:
E.R. (Rick) Honsinger, P.Geo., V.P. Corporate Communications
Formation Metals Inc., 1810 — 999 West Hastings Street, Vancouver, BC, V6C 2W2
Tel: 604-682-6229 - Email: firstname.lastname@example.org — Web: www.formationmetals.com
This news release contains “forward-looking statements” within the
meaning of applicable Canadian securities legislation. Generally,
forward-looking statements can be identified by the use of forward-
looking terminology. Forward-looking statements 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. 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. 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. Further information on the Company is available at
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 the parties 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:September 16th, 2013, Formation Metals to Sell Refinery for US$12 Million
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News Release:November 21st, 2013, Formation Metals Corporate Update & Review