Formation Metals (FCO-T) Completes Oversubscribed $4.4M PP
June 1st 2016 - NR
Formation Metals is pleased to announce that it has completed its previously announced offering with the majority of the over-allotment option exercised pursuant to which it has issued and sold 14,755,200 units of the Company at a price of C$0.30 per Unit (the "Issue Price") for total gross proceeds of C$4,426,560. On a fully diluted basis, the Units sold represents 24.99% of pre-closing issued and outstanding common shares. Management and Insiders subscribed to 8% of the Offering.
Each Unit purchased in the Offering consisted 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 entitles the holder thereof to acquire one Share at a price of $0.40 for a period of 24 months following the Closing Date. The Offering was completed on a private placement basis by Dundee Securities Ltd. ("Dundee"). The Units issued in connection with the Offering are subject to a statutory hold period in accordance with applicable securities legislation.
The Company paid a total commission fee of $177,886 and issued 592,954 warrants ("Compensation Warrants") to Dundee and other agents. The Compensation Warrants have an exercise price of $0.37 and each Compensation Warrant entitles the holder thereof to acquire one Share for a period of 24 months following the Closing Date.
The Company intends to use the net proceeds of the Offering to fund bankable feasibility level technical studies on the Company's Idaho Cobalt Project and for general working capital purposes.
"The closing of this financing is a major advancement in moving our Idaho Cobalt Project towards production." stated Paul Farquharson, President and CEO of Formation Metals Inc. He continued, "These funds are expected to allow us to produce a bankable feasibility study that will assist the Company in moving forward on project capex financing".
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 contents.
Formation Metals Inc.
"J. Paul Farquharson"
J. Paul Farquharson
President & C.E.O.
SOURCE Formation Metals Inc.
please contact:
Formation Metals Inc.,
1810 - 999 West Hastings Street,
Vancouver, BC,
V6C 2W2,
Tel: 604-682-6229 -
Email: inform@formationmetals.com -
Web: www.formationmetals.com |
