Offering of 10 million units is conducted by agent Dundee Securities
By Devika Patel
Knoxville, Tenn., May 4 – Formation Metals Inc. said it plans a C$3 million private placement of units. The deal will be conducted on a best-efforts basis by Dundee Securities Ltd.
The company will sell 10 million units of one common share and one half-share warrant at C$0.30 per unit. The whole warrants are exercisable at C$0.40 each for two years. The strike price is a 14.29% premium to the May 3 closing share price of C$0.35.
Settlement is expected May 25.
Proceeds will be used for bankable feasibility level technical studies of the Idaho Cobalt Project and general working capital purposes.
Formation is a Vancouver, B.C.-based cobalt, copper and gold mining and refining company.
| Issuer: | Formation Metals Inc.
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| Issue: | Units of one common share and one half-share warrant
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| Amount: | C$3 million
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| Units: | 10 million
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| Price: | C$0.30
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | Two years
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| Warrant strike price: | C$0.40
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| Agent: | Dundee Securities Ltd.
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| Pricing date: | May 4
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| Settlement date: | May 25
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| Stock symbol: | Toronto: FCO
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| Stock price: | C$0.35 at close May 3
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| Market capitalization: | C$29.99 million
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