Formation Metals Closes Second Tranche of its Private Placement for Aggregate Proceeds of $8.46M, Increases Drill Program to 30,000 Metres at the Advanced N2 Gold Project

Executive Summary

• Formation Metals closed the second tranche of its private placement, raising C$8.46 M in gross proceeds (17.84 M LIFE Units at $0.37 and 4.53 M FT Units at $0.41).
• The company now has approximately C$12.7 M of working capital, zero debt, and an exploration budget of ~C$8.1 M for 2025‑2026.
• It announced an expanded 30,000‑metre drill program at the N2 Gold Property to target new high‑potential zones and infill/expand known gold zones.

Key Details

• Financing – LIFE Offering: 17,837,838 units @ $0.37 per unit → C$6,600,000 total gross proceeds (including prior tranche). Each unit = 1 common share + 1 warrant exercisable at $0.54 for 36 months; no hold period.
• Financing – FT Offering: 4,528,341 flow‑through units @ $0.41 per unit → C$1,856,620 gross proceeds (second tranche).
• Second Tranche Gross Proceeds: $194,230.33 from issuance of 524,947 LIFE units.
• Total Capital Raised to Date: Approximately C$8.46 M in gross proceeds across both tranches.
• Use of Proceeds: Primarily to fund the expanded 30,000‑metre drill program and related exploration activities; detailed allocation outlined in offering documents.
• Working Capital Post‑Closing: ~C$12.7 M; zero debt.
• Exploration Budget (2025‑2026): ~C$8.1 M, inclusive of Quebec provincial tax credits.
• Drill Program Expansion: 30,000 m total at N2 Gold Property, focusing on discovery drilling along the “A”, “RJ” and “Central” zones and high‑priority infill targets.
• Historical Resource Highlights (N2):
• ~870,000 oz Au (18 Mt @ 1.4 g/t) across four zones;
• ~61,000 oz Au (243 kt @ 7.82 g/t) in RJ zone.
• Zone‑Specific Historic Data:
• A Zone: ~522,900 oz Au @ 1.52 g/t; 15,000 m drilled, >3.1 km strike remaining.
• RJ Zone: ~61,100 oz Au @ 7.82 g/t; historic intercepts up to 51 g/t Au over 0.8 m; only ~900 m of strike drilled, >4.75 km remaining.
• Consulting Agreements:
• Plutus Invest & Consulting GmbH – marketing/communications services for 12 months, fee up to €250,000 (no securities issued).
• 1502656 B.C. Ltd. – digital media and data analytics services extended 6 months, budget up to $350,000 (no securities issued).
• Base‑Metal Potential: Historic drill holes show Cu assays 200–4,750 ppm and Zn 203–6,700 ppm, indicating possible Cu‑Zn VMS style mineralization.

Notable Quotes

• Deepak Varshney, CEO and Director: “The successful closing of the Offerings provides us with a strong capital base to accelerate our exploration program at N2, where we see significant upside both for gold and base metals.”