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Formation Metals (TSX: FCO) has announced a brokered private placement with Dundee Securities

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The company is seeking to raise up to $3 million, on a “best efforts” basis, through the issuance of up to 10 million units at $0.30 per unit. Each unit consists of 1 share and one-half a warrant, with each full warrant exercisable at $0.40 for 24 months.

Additional Information:

Company: Formation Metals
Website: http://formationmetals.com
Stock Symbol: TSX: FCO
Date Published: May 4, 2016
Transcript: Available

Video Transcript:

I’m Samantha Deutscher for Investmentpitch Media

Formation Metals (TSX:FCO) has announced a brokered private placement with Dundee Securities.

The company is seeking to raise up to $3 million, on a “best efforts” basis, through the issuance of up to 10 million units at $0.30 per unit. Each unit consists of 1 share and one-half a warrant, with each full warrant exercisable at $0.40 for 24 months.

The company intends to use the net proceeds to fund bankable feasibility level technical studies of the company’s Cobalt Project as well as for general working capital.

With investors chasing the companies with lithium projects, it was only a matter of time before investors started to notice that cobalt is also used in rechargeable batteries, primarily for electric vehicles and portable electronic devices.

This demand for cobalt is expected to move the supply/demand balance into deficit territory during 2016.

With its Idaho based project, Formation is strategically positioned to offer investors North America’s only primary cobalt deposit - an advanced staged, environmentally sound supply of battery grade cobalt chemicals that can be rapidly advanced towards production.

An updated Preliminary Economic Assessment filed in March 2015, which is available on Sedar.com, shows an initial payback of capital in 3.7 years, using a target mill production rate of 800 tonnes per day.

In addition to cobalt, the company will produce copper, gold, and magnesium.

After a recent run from $0.085 to $0.465, the shares are currently trading at $0.34 and with 90.9 million shares currently outstanding, the company is capitalized at $31 million.

For more information, please visit the company’s website www.formationmetals.com or contact Rick Honsinger, Vice President, at 604-682-6229 or email inform@formationmetals.com.

I’m Samantha Deutscher for Investmentpitch Media