Formation Metals Announces Upsize to Previously Announced LIFE Offering and Private Placement of Units to $8.6 Million

Executive Summary

• Formation Metals announced an upsized private‑placement financing (“Upsized Offering”) of up to C$8.6 million, consisting of a LIFE unit offering (up to C$6.6 M) and a flow‑through unit offering (up to C$2.0 M).
• The company outlined a 20,000 m multi‑phase drill program at its flagship N2 Gold Project in Quebec, with Phase 1 (10,000 m fully funded) commencing 25 Sept 2025 targeting the high‑potential “A” and “RJ” zones.
• Proceeds will substantially increase working capital to ~C$13 M and boost the 2025‑2026 exploration budget from ~$5.7 M to >$8.5 M, enabling extensive drilling, IP surveys, and base‑metal re‑evaluation.

Key Details

• Upsized Offering – LIFE Unit Component
• Up to 17,847,838 units at C$0.37 per unit → gross proceeds up to C$6.6 M (≈ US$4.9 M).
• Each unit = 1 common share + 1 warrant (exercise price C$0.54, exercisable for 36 months).

• No hold period on LIFE units.

• Upsized Offering – Flow‑Through Component

• Up to 4,878,049 FT units at C$0.41 per unit → gross proceeds up to C$2.0 M (≈ US$1.5 M).
• Each unit = 1 flow‑through common share + 1 warrant (exercise price C$0.62, exercisable for 24 months).

• FT units subject to statutory hold period of 4 months + 1 day.

• Finder Compensation

• Cash fee up to 7 % of gross proceeds and/or finder warrants equal to up to 7 % of the number of units sold to introduced investors.

• Use of Proceeds

• Net proceeds earmarked for fieldwork at exploration projects, primarily funding the 20,000 m drill program and associated IP surveys, data compilation, and base‑metal assay re‑evaluation.

• Drill Program Overview

• Total planned: 20,000 m across six zones (A, East, RJ‑East, Central, etc.).
• Phase 1: 10,000 m, fully funded, started 25 Sept 2025; targets “A” zone (~522,900 oz Au at 1.52 g/t) and “RJ” zone (historical high‑grade intercepts up to 51 g/t Au over 0.8 m).

• Historical resource: ~877,000 oz Au (18 Mt @ 1.4 g/t) plus 61,000 oz Au in RJ zone at 7.82 g/t.

• Financial Position

• Pre‑financing working capital: C$4.7 M, zero debt.
• Post‑financing expected working capital: ~C$13 M.

• Exploration budget increase from ~C$5.7 M to >C$8.5 M for 2025‑2026.

• Base‑Metal Potential

• Historic drill core re‑evaluation shows Cu assays 200–4,750 ppm and Zn 203–6,700 ppm, indicating notable Cu‑Zn potential at A and RJ zones.

• Qualified Person

• Technical content reviewed by Mr. Babak Vakili Azar, P.Geo., qualified person under NI 43‑101.

Notable Quotes

“The Upsized Offering provides us with the capital needed to aggressively advance our flagship N2 Gold Project and unlock its full potential,” – Deepak Varshney, CEO & Director.