Formation Metals gets extension for Idaho Cobalt project facility

By Jennifer Chiou

New York, Oct. 6 - Formation Metals Inc. announced that it has obtained an extension to the date to provide letters of credit to back the $77.7 million of Federal Stimulus Program Recovery Zone facility bonds, which are exclusively for the Idaho Cobalt project.

The deadline was extended to Nov. 21 from Oct. 6.

According to a news release, the boards of directors of the bonds' issuers, the Industrial Development Corp. of Lemhi County and the Industrial Development Corp. of Shoshone County, Idaho, both met in special sessions on Tuesday to approve the extension.

As announced on July 29, BNP Paribas is arranging two contemplated letters of credit totaling $79.5 million to support the payment of principal and interest accruing on the bonds.

The first letter of credit is for $58.5 million in support of the Lemhi County bonds for the construction and development of the Idaho Cobalt project mine and mill facility. It is being syndicated by BNP on a best-effort basis,

The $21 million financial letter of credit is for the Shoshone County bonds, which are for the retrofitting of the Idaho Cobalt project hydrometallurgical plant and construction of the cobalt beneficiation plant.

The company noted that it anticipates needing additional support for the financing letter of credit, adding that it is reviewing its options to secure this support.

Thornton Farish Inc. is the remarketing agent.

Vancouver-based Formation Metals focuses on mining and refining.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.