Formation Metals Incis pleased to
announce that its 100% owned subsidiary, Formation Capital Corporation, U.S.,
(the "Company") has been issued two revised Certificates of
Allocation from the State of Idaho authorizing an additional US $31 million
in Federal Stimulus Program Recovery Zone Facility Bonds with the Company as
Ultimate Beneficiary. The bonds are to be issued by The Industrial
Development Corporation of Lemhi County, Idaho and the Industrial Development
Corporation of Shoshone County, Idaho. Any funds received from the sale of
tax exempt bonds will be used to develop the Company's 100% owned Idaho
Cobalt Project mine located in Lemhi County and retro-fit its
hydrometallurgical facility located in Shoshone County, Idaho (the
"This (US) $31 million is in
addition to the allocation of (US) $46.7 million granted by Idaho's
Department of Commerce to the Company in September," stated Mari-Ann
Green, Formation's Chairman and C.E.O. (see Company news release dated
September 16, 2010). "The Company, along with the two Industrial
Development Corporations and the bond underwriter, can now concentrate its
efforts on getting the Recovery Zone Facility Bonds issued prior to the
December 31, 2010 expiration date for this category of bonds. This affords
the Company the flexibility to apply for approximately (US) $45.4 million in
Solid Waste Private Activity Bonds at a future date, as these types of bonds
do not have an expiry date. Following the expected issuance of the Recovery
Zone Facility Bonds, the Company will continue to work to secure credit
approval for long term bank project financing as outlined in the Company's
news release dated November 30, 2010," Ms. Green concluded.
The Company has engaged Thornton Farish Inc., Investment Bankers as the underwriter for
the Recovery Zone Facility Bonds. Thornton Farish
is widely recognized as one of the early pioneers of industrial revenue bond
financing. The firm has extensive expertise and experience in all forms of
tax-exempt bond financing; including recovery zone facility bonds and solid
The 100% owned Idaho Cobalt Project is a
unique, fully permitted primary cobalt deposit that will be capable of
producing high purity cobalt metal. Cobalt is used in a wide variety of
environmental and high-tech applications that include the re-chargeable
battery and aero-space sectors.
Formation Metals Inc. is dedicated to
the principles of environmentally sound mining and refining practices, and
believes that environmental stewardship and mining can co-exist. Formation
trades on the Toronto Stock Exchange under the symbol FCO.
Formation Metals Inc.
Mari-Ann Green, C.E.O.
This press release contains
"forward-looking statements" within the meaning of applicable
Canadian securities legislation. Generally, forward-looking statements can be
identified by the use of forward- looking terminology. Forward-looking
statements 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. 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. 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. Further information on the Company is
available at www.sedar.com.
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 the parties 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.
E.R. (Rick) Honsinger, P.Geo.
Formation Metals Inc.
V.P. Corporate Communications