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Formation
Metals Mandates BNP Paribas to Arrange Idaho Cobalt Project Debt
Vancouver, B.C., November 30,
2010, Formation Metals Inc. (FCO-TSX) ("Formation") is pleased to announce it has
signed an Engagement Letter with BNP Paribas Securities Corp. ("BNP
Paribas") to act as sole Mandated Lead Arranger and bookrunner for a senior secured debt facility (the
"Facility") for the construction and operation of Formation's
100% owned Idaho Cobalt Project (the "ICP"). Based on an
indicative term sheet negotiated between BNP Paribas and Formation
through its financial advisor, Auramet Trading,
LLC ("Auramet"), the Facility may
take the form of an amortizing construction / term loan or Letter of
Credit supporting the issuance of tax exempt industrial bonds. The
establishment of the Facility remains subject to, amongst other things,
customary due diligence by the lenders and credit approval. All parties
are excited at working toward the execution of the Facility as an
integral part of the mine financing.
About BNP Paribas
BNP Paribas (www.bnpparibas.com) is one of the six strongest banks in the
world (rated AA by Standard & Poor's i.e. 3rd rating on a scale of
22) and the largest bank in the eurozone by
deposits. With operations in 85 countries BNP Paribas provides a full
range of product and distribution capabilities, including a dedicated
group specializing in providing debt solutions to the energy, metals and
mining industries for project and structured finance. BNP Paribas is
perennially a highly ranked market leader in global project finance and
mine project finance, respectively, with a global syndication capability.
About Auramet Trading, LLC
Auramet is a global physical precious metals
merchant run by experienced professionals providing a full range of
services to all participants in the precious metals chain, from
extraction and production to manufacturing and consumption. Auramet prides itself on building strong and loyal
relationships and provides physical metal merchant, merchant banking and
structured finance and advisory services for its clients.
Formation Metals Inc.
Formation is a well established mineral exploration, development and
refining company who, through its 100% owned subsidiary, Formation
Capital Corporation, U.S. is developing the ICP. Through its wholly owned
subsidiaries, Formation has additional interests in base, precious metal
and uranium projects in Canada, the United States and Mexico. Formation
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.
About the Idaho Cobalt Project
The 100% owned ICP is a unique, "shovel
ready" and fully environmentally permitted primary cobalt deposit
and refining facility that will be capable of producing high purity
cobalt metal. Cobalt is used in a wide variety of environmental and high-tech
applications, including re-chargeable batteries and superalloys
required in the aerospace sectors. Currently, the United States is the
world's second largest consumer of cobalt and is totally reliant on
foreign sources for this essential metal.
FORMATION METALS INC.
"Mari-Ann Green"
Mari-Ann Green,
C.E.O.
For further information please
contact:
E.R. (Rick) Honsinger, P.Geo.,
V.P. Corporate Communications
Formation Metals Inc., 1730 -- 999 West Hastings Street, Vancouver, BC,
V6C 2W2
Tel: 604-682-6229 - Email: inform@formationmetals.com -- Web:
formationmetals.com
_________________________________________________________________
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.
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