October 23, 2006
Formation Receives Second Payment on Sale of Big Creek Tailings Facility
Vancouver, B.C., October 23, 2006 - Formation Capital Corporation (the “Company”, FCO-TSX,)
announced today that it’s wholly owned subsidiary Essential Metals
Corporation (EMC) has received US $500,000 as the second payment from
the sale of its tailings facility to Sterling Mining Company (Sterling)
as per the Company’s News Release dated October, 04 2006.
Under the terms of the sale Sterling shall pay EMC a total of US $4.5
million cash and convey a certain neighboring 16 acre parcel of land to
EMC. Payment terms are as follows: US $100,000 upon agreeing to the
terms (paid), US $500,000 on or before October 20, 2006 (paid) and US
$3.9 million on or before January 22, 2007.
The tailings facility is only one of the facilities that form a part of
EMC’s Big Creek Hydrometallurgical Complex. EMC will remain the owner of
the Sunshine Precious Metals Refinery, the SXEW copper refinery, the
hydrometallurgical plant, the concentrate loading and unloading facility
and the associated land package and buildings. The Company has
determined that it will not need to use the tailings facility when its
hydrometallurgical plant is in operation.
When the transaction is completed in January, 2007 Sterling will own the
tailings facility which is expected to augment their plans to re-open
the historic Sunshine Silver Mine.
Formation Capital Corporation is a mineral exploration, development and
refining company with assets concentrated in the state of Idaho. It
owns the Idaho Cobalt Project, a unique high grade primary cobalt
deposit in the final feasibility and permitting stage of development.
Formation Capital Corporation 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 Capital Corporation
Chairman and C.E.O.
For further information please contact:
Formation Capital Corporation
1510 — 999 West Hastings Street
Vancouver, B.C. V6C 2W2
Investor Relations: Contact Encompass Communications toll free 877-566-6592
- Or visit our Web site at: www.formcap.com
The statements contained in this news release in regard to Formation
Capital Corporation that are not purely historical are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, including Formation Capital Corporation’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:October 17th, 2006, Idaho Cobalt Project Feasibility Study Advancing Toward Completion
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News Release:November 1st, 2006, General Manager of Sunshine Refinery Retires