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Formation Metals Inc. (TSX:FCO - News;
"Formation") announced today that its 100% owned subsidiary,
Formation Capital Corporation, U.S. (the "Company"), has signed a
Letter of Intent with JDS Energy & Mining Inc.'s subsidiary
("JDS") for Engineering, Procurement and Construction Management
services for the Idaho Cobalt Project ("ICP").
"The Project Management Services
JDS will provide are the cornerstone to a successful and economically sound
mining project," stated Mari-Ann Green, CEO of Formation Metals Inc.
"After negotiating with JDS for quite some time, we are extremely
pleased to now be working with such a well respected, sought after company in
this endeavour with a comprehensive plan for the ICP in place."
JDS will work on a target based project
risk/reward basis that will include an on-budget, on schedule and no harm
execution accountability. Project development will be approached in three
stages; Stage 1: Comprehensive overall project design and execution review to
enhance the Idaho Cobalt Project; Stage 2: Detailed design, procurement and
contract execution, and; Stage 3: Construction management through to
commissioning and handover. Formation is confident that together with JDS it
can reduce the cost, reduce the risk and enhance the value potential and long
term success of the ICP.
"Through the leadership of Mari-Ann
Green and her team, this project has developed into a resource that can now
be fully realized," says Jeff Stibbard President, JDS Energy &
Mining. "We welcome the opportunity to participate in Formation's Cobalt
Project."
Ms. Green further commented, "With
JDS's technical support on the project, Management is focusing its efforts on
ICP mine finance. This includes securing a credit facility necessary for the
release of the US $77.7 million in proceeds, held in trust, from the recently
issued Recovery Zone Facility Bonds (see December 31, 2010 Formation news
release)." These funds will be used for the construction of the ICP.
About JDS Energy & Mining Inc.:
JDS has extensive experience with
successful large-scale resource developments in Canada, including a diamond
mine in the Arctic, major oil sands projects in Alberta and a copper mine in
Yukon, among many other projects throughout the world. Their team consists of
about 25 full-time specialists and four industry associates who work together
on a project-specific basis. Their motto is "You have a resource. You
have a vision. We get it done". They extract maximum value from their
projects while balancing guiding management principles. More information can
be found on their company website at www.jdsmining.ca.
Jeff Stibbard, P.Eng., President &
CEO
Jeff is the Founder and President of JDS
Energy & Mining. He is a Mining Engineer with expertise in mine design,
construction and operation. Mr. Stibbard has served or continues to serve as
a Technical Advisor to numerous mining companies including Capstone Mining
Corp. (formerly Sherwood Copper Corp.), Stornoway Diamond Corp., Tenajon
Resources Corp. and MegaMoly Corp. His extensive experience includes: Mining
Manager, BHP Ekati Diamond Mine which included initial design, permit and
construction of the project. He served as the General Manager of Mining,
Albian Sands Energy Inc., Fort McMurray. He was accountable for leading the
design, construction and operation of the 450,000 tpd Muskeg River Oilsand
Mine and Tailings Dyke. Prior to Albian Sands, he was one of the original
founding members of Western Oilsands Inc. a 20% partner in the development of
the Shell Muskeg River Mine, Fort McMurray. Since founding JDS in 2005, the
company has been involved in the design, permit, construction, operation and
maintenance of multiple successful projects. He has also served as a Director
of Stornoway Diamond Corp. Mr. Stibbard received a BASc. in Mining
Engineering, from the Montana School of Mines in 1987.
Gordon Bussieres, V.P. Construction
A long term JDS employee, Gordon has
been with the company since its inception and has participated in every major
JDS project undertaken. Over-seeing all JDS field operations with particular
attention to project reporting, site safety and logistics management,
Gordon's attention to detail and organizational control ensures projects
remain on budget and on schedule. He has over 20 years of industry experience
with a proven track record for completing of projects on time and within
budget. Gord worked as a Project Manager on Farallon Resources' $150M G-9
Project in Mexico. He was a Construction Manager at Capstone Mining Corp.
(formerly Sherwood Copper Corp.), $100M Minto Mine and before that he was
Mine Manager and Expansion Manager at the $2B Muskeg River Mine in Alberta.
Wayne Corso, V.P. Engineering
Wayne has been with JDS since 2007, but
has had a long professional relationship with the principles of the company.
He received his Mining Engineering degree from the Colorado School of Mines
in 1984 and got his start in the Mining industry underground at Homestake
Mining. Since then Wayne has, through positions of increasing responsibility,
planned, coordinated, and directed resources and activities for a wide
variety of projects first for Homestake and later for BHP Minerals. From the
BHP Minerals Mine services group, he supported exploration, new business
development and operations with engineering analysis and economic evaluations
for various projects. He was eventually recruited to join the bulk sampling
and development team at Ekati Diamonds in Canada's NWT where he played an
instrumental part in the permitting and development of the project. Wayne
brings engineering and management skills to the team along with a dose of practical
creativity aimed at making projects work. He brings knowledge from a diverse
portfolio of experience ranging from successfully managing high-tech projects
with a low-tech mindset, to getting the most out of a local gravel operation,
to keeping a team focused on the prize in multimillion dollar projects.
About the Idaho Cobalt Project:
The 100% owned Idaho Cobalt Project is a
unique, fully environmentally 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.
Contact:
E.R. (Rick) Honsinger, P.Geo.
Formation Metals Inc.
V.P. Corporate Communications
604-682-6229
inform@formationmetals.com
www.formationmetals.com |