Formation Metals Announces $6,000,000 Private Placement is Fully Allocated

Executive Summary

• Formation Metals announced that its previously disclosed private placement of up to 10,810,810 LIFE Units at $0.37 and 4,878,049 FT Units at $0.41 is fully allocated, providing gross proceeds of up to C$6 million.
• The company plans a 20,000‑metre multi‑phase drill program at the N2 Gold Project, with Phase 1 (10,000 m) already started on September 25, 2025 targeting the high‑potential “A” and “RJ” zones.
• Working capital will increase from ~C$5 million to ~C$10.5 million (including tax credits), positioning Formation to fund its 2025‑2026 exploration budget of ~$5.7 million.

Key Details

• Financing Structure
• LIFE Units: 10,810,810 units @ $0.37 each → gross proceeds up to C$4 M.
• FT Units: 4,878,049 units @ $0.41 each → gross proceeds up to C$2 M.
• Total potential gross proceeds: C$6 million (fully allocated).

• Offering subject to customary closing conditions and CSE approval.

• Use of Proceeds

• Fund the 2025‑2026 exploration budget (~C$5.7 M) for the N2 Gold Project.

• Support Phase 1 drilling, IP surveys, data compilation, and base‑metal assay review.

• Drill Program Overview

• Total planned: 20,000 m across six zones (A, East, RJ‑East, Central, etc.).
• Phase 1: 10,000 m, commenced 25 Sep 2025; targets “A” zone (shallow, continuous historic deposit ~522.9 k oz Au) and “RJ” zone (high‑grade historic intercepts up to 51 g/t Au over 0.8 m).

• Remaining strike: >3.1 km in A zone; >4.75 km in RJ zone still untested.

• Project Metrics

• Historic resource: ~870,000 oz Au (18 Mt @ 1.4 g/t) + 243 kt @ 7.82 g/t Au (~61,000 oz).

• Base‑metal potential: historic Cu assays 200–4,750 ppm; Zn 203–6,700 ppm.

• Financial Position

• Pre‑financing working capital: ~C$5 M, zero debt.

• Post‑financing working capital (incl. tax credits): projected ~C$10.5 M.

• Management Comment

• CEO Deepak Varshney: “We are very pleased with the strong response to our financing… We look forward to completing the closing in the coming week and putting this capital to work to advance our exploration and development plans.”

Notable Quotes

“We believe that the support from new potential investors is a strong endorsement of our projects and strategy.” – Deepak Varshney, CEO & Director

All forward‑looking statements are subject to risks and uncertainties as detailed in the full release.