Formation makes Union Bank lead arranger on $80 million facility

By Tali David

Minneapolis, Feb. 7 - Formation Metals Inc. signed an agreement with Union Bank, NA mandating Union Bank as lead arranger to provide an $80 million credit facility supporting the company's $77.7 million of tax-exempt recovery zone facility bonds, the company announced in a press release.

A portion of the bond proceeds is being used to finance the development of Formation's Idaho cobalt project, and the remaining portion will be held in trust in the company's construction account. The credit facility will provide letter of credit support, which will free restricted cash from the bonds for the further development of the project.

The transaction is expected close March 15.

Vancouver-based Formation Metals focuses on mining and refining.

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