Formation Metals completes redemption of $43.6 million of bond debt

By Tali David

Minneapolis, May 13 - Formation Metals, Inc. redeemed $43.6 million of bond debt on May 9, according to a release.

The redemption was funded with the company's cash, which had been restricted as collateral for the bonds.

"This relieves the company of all of its long-term debt and interest obligations associated with the bonds, and also gives the company access to $9.5 million, which had been restricted as excess collateral for the RZFB. These funds can now be added to the company's existing working capital and used to move the company's other business forward," chief executive officer Mari-Ann Green said in the release.

"This action makes sense in light of our announcement last week stating we were deferring the underground development of the ICP until market conditions improve."

Formation is a Vancouver, B.C.-based cobalt, copper and gold mining and refining company.

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