Offering of 14,755,200 units was conducted by agent Dundee Securities
By Devika Patel
Knoxville, Tenn., June 1 – Formation Metals Inc. said it settled a C$4.43 million private placement of units. The oversubscribed deal was conducted on a best-efforts basis by Dundee Securities Ltd. and priced for C$3 million on May 4.
The company sold 14,755,200 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.
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.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$4,426,560
|
| Units: | 14,755,200
|
| Price: | C$0.30
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.40
|
| Agent: | Dundee Securities Ltd.
|
| Pricing date: | May 4
|
| Settlement date: | June 1
|
| Stock symbol: | Toronto: FCO
|
| Stock price: | C$0.35 at close May 3
|
| Market capitalization: | C$29.99 million
|
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