Formation Metals plans to raise $100 million, C$60 million via sale of notes/warrants units

By Paul A. Harris

St. Louis, Dec. 11 - Formation Metals Inc. plans intends to raise $100 million and C$60 million via the sale of up to 102,041 notes and warrants units, according to a Friday press release.

The units, which are offered at 98.00, will be comprised of a senior secured note and 150 common share warrants.

The notes will initially bear interest at 10%, with the rate stepping up to 12% after two years.

Jennings Capital Inc. is the lead agent. Blackmont Capital Inc. and Acumen Capital Finance Partners Ltd. are agents.

The first four interest payments on the notes will be held in escrow.

Proceeds will be used to fund construction at the Idaho Cobalt Project and the Big Creek Hydrometallurgical Complex, for bonding requirements and for general corporate purposes.

Formation is a Vancouver, B.C.-based metals mining and refining company.

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