Vancouver, B.C., June 21, 2016, Formation Metals Inc. ('Formation' or the 'Company') announces today that it has signed an agreement with Micon International Limited ('Micon') for technical services to conduct a Bankable Feasibility Study* on Formation's Idaho Cobalt Project (the 'ICP'). Micon will be subcontracting aspects of the study concerning the processing, infrastructural engineering, risk assessment, project scheduling, and cost estimating to SNC-Lavalin Inc. ('SNC-Lavalin'). This agreement represents the culmination of several weeks of a bidding process involving over half a dozen qualified engineering firms. The initiation of this process was first announced in the Company's March 2, 2016 news release.
'This development is a significant milestone in the advancement of the ICP towards production', stated Paul Farquharson, President & CEO of Formation Metals. 'As a result of our recently completed C$4.4M financing, we are now able to fast-track the engineering of the ICP.' He continued, 'During this process, expected to culminate in Q1-2017, management will be actively pursuing additional financing opportunities with the ultimate goal of securing Capex financing to re-commence construction of our cobalt project.'
Micon is a well-respected mining consultancy providing independent professional advice to mining companies and their providers of capital, law firms and government agencies. Staffed by senior mineral industry consultants with extensive international experience in the fields of geology, mining engineering, metallurgy, processing, environmental management, market analysis and mineral economics, the firm is well qualified to carry out consulting assignments throughout the world. Micon will be responsible for the overall management of the project, geology and resources, mining and reserves, metallurgy, environmental review and economic evaluation.
Founded in 1911, SNC-Lavalin is one of the leading engineering and construction groups in the world, with offices in over 50 countries. It brings to the table significant experience in cobalt hydrometallurgical processing having worked on numerous projects worldwide. SNC-Lavalin's Mining and Metallurgy team combines global-caliber expertise with proven capabilities to provide tailored solutions for projects of varying size, scope and complexity.
Formation Metals Inc.'s primary asset, the Idaho Cobalt Project, remains the sole, near term, environmentally permitted, primary cobalt deposit in the United States and offers a unique potential for North American consumers to secure an ethically sourced, environmentally sound supply of battery grade cobalt chemicals, mined safely and responsibly in the United States. E.R. (Rick) Honsinger, P.Geo., Vice President of the Company, is the Qualified Person as defined by National Instrument 43-101 who has supervised the preparation of this news release and has approved its contents.
Formation Metals Inc.
'J. Paul Farquharson'
J. Paul Farquharson President & C.E.O.
*As used in this press release, 'Bankable Feasibility Study' simply means a study report with the type of information and documentation typically required by financial institutions for the purposes of evaluating and financing projects similar to the ICP as described under AACE guidelines for a Class 3 estimate. For greater certainty, the use of the word 'bankable' before 'feasibility study' does not guarantee that the ICP is one that will secure project financing.
This news release contains 'forward-looking statements' within the meaning of applicable Canadian securities legislation. Statements in this news release pertaining to expected finance completion date are forward-looking statements. These forward-looking statements are based on assumptions and address future events and conditions and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. Such projections are and will inevitably always be dependent on assumptions about future mineral prices and development costs which will be subject to fluctuation due to global and local economic and industry conditions. Further information regarding risks and uncertainties which may cause results to differ from those contained in forward-looking statements is included in filings by the Company with securities regulatory authorities and is available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Although the Company has disclosed that the Idaho Cobalt Project remains the sole, near term, environmentally permitted, primary cobalt deposit in the United States and offers a unique potential for North American consumers to secure an ethically sourced, environmentally sound supply of battery grade cobalt chemicals, there is no guarantee that the Company will attain commercial production of such cobalt chemicals for use in the rechargeable battery sector. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws.
The statements contained in this news release in regard to Formation Metals Inc. that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including Formation Metals Inc.'s beliefs, expectations, hopes or intentions regarding the future. All forward-looking statements are made as of the date hereof and are based on information available to Formation Metals Inc. as of such date. It is important to note that actual outcome and the actual results could differ from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as technological, legislative, corporate, commodity price and marketplace changes.