August 26, 2008
Idaho Cobalt Project Appeal Resolution Process Underway
Vancouver, B.C., August 26, 2008 - Formation Capital Corporation (“Formation”, FCO-TSX,)
announces that its wholly owned subsidiary, Formation Capital
Corporation, U.S. (the “Company”) has received from the United States
Department of Agriculture, US Forest Service, Intermountain Region,
Ogden, Utah copies of the four appeals filed in relation to the
Company’s 100% owned Idaho Cobalt Project (ICP) located in Lemhi County.
“It is not unusual to receive appeals once a Record of Decision has been
issued on a project,” said Preston Rufe, Environmental Manager for the
ICP. “In fact, it is rare to see a project of this scope proceed
without appeals. What is unusual is that there are only four, which I
think is a testament to the Idaho Cobalt Project’s solid mine plan.
Preservation of the environment has always been considered a high
priority”, continued Rufe. “We believe the Idaho Conservation League’s
(Idaho’s largest membership private non-profit conservation
organization) announcement last week not to appeal the ICP Record of
Decision was also a factor”.
The administrative appeals are not filed with the court but rather with
the Regional Forester. Soon after the appeals are received, the
Salmon-Challis National Forest Service contacts the appellants to secure
meetings for the resolution of appeals. The Company may participate in
these meetings and/or contact the appellants with the same objective.
If there remain differences between the appellants and the Forest
Service at the end of the 45 day period, the Regional Forester will
issue a Final Determination. The Company anticipates any Final
Determination will uphold the Record of Decision made by the
Salmon-Challis National Forest in June of this year.
One of the appellants is a subsidiary of Swiss-based Xstrata
(“Xstrata”), the fifth largest mining company in the world and a major
producer of high purity cobalt. Xstrata owns the old Blackbird Mine
site which is near the ICP. The Blackbird Mine site has been impacted
from past mining practices and is undergoing restoration. Xstrata holds
approximately 40% of the liability for the restoration of the site.
Their appeal states, among other things, that if the ICP is approved,
they should be relieved of their obligations to meet water quality
standards in certain creeks emanating from their site.
A subsidiary of London based Rio Tinto (acquired via the takeover of
Alcan) is also involved in the restoration of the old Blackbird Mine
site and holds approximately 60% of the liability. Rio Tinto did not
appeal the ICP Record of Decision.
In addition, the Company recently filed a Motion for Right of Access
against Xstrata requesting a “permanent” easement across the old
Blackbird Mine site. The Motion was heard in an Idaho District Court on
August 21, 2008. The Company expects a ruling in the next couple of
Once in production, Formation’s Idaho Cobalt Project will provide the
United States with high purity super alloy grade cobalt metal required
for critical applications such as the construction of jet airplane
engines, land based turbines, catalysts for gas to liquid technology,
and batteries used in hybrid and electric cars. At present, the US is
essentially 100% dependent of foreign sources for cobalt.
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
Mari-Ann Green, C.E.O.
For further information please contact:
E.R. (Rick) Honsinger, P.Geo., V.P. Corporate Communications
Formation Capital Corporation, 1510 — 999 West Hastings Street, Vancouver, BC, V6C 2W2
Head Office: 604-682-6229
- Or visit our Web site at: 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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