Formation Metals Announces $6,000,000 Private Placement

Executive Summary

• Formation Metals announced a non‑brokered private placement (“LIFE Offering”) of up to 10,810,810 units at $0.37 per unit for gross proceeds of up to C$4 million.
• Concurrently, the company will raise an additional C$2 million through a flow‑through private placement of up to 4,878,049 FT Units at $0.41 per unit.
• Proceeds are earmarked for fieldwork and drilling on the flagship N2 Gold Project, which is slated for a 20,000 m multi‑phase drill program (Phase 1 – 10,000 m fully funded, starting 25 Sep 2025).

Key Details

• LIFE Offering
• Units offered: up to 10,810,810 LIFE Units
• Unit composition: 1 common share + 1 common share purchase warrant
• Price per unit: $0.37 (C$)
• Gross proceeds target: C$4 million
• Warrant exercise price: $0.54 per share, exercisable for 36 months after closing

• No statutory hold period on LIFE Units

• FT Private Placement

• Units offered: up to 4,878,049 FT Units
• Unit composition: 1 flow‑through common share + 1 transferable warrant
• Price per unit: $0.41 (C$)
• Gross proceeds target: C$2 million
• Warrant exercise price: $0.62 per share, exercisable for 24 months after closing

• Statutory hold period on FT Units: 4 months + 1 day

• Finder Compensation

• Cash fee up to 7 % of gross proceeds for eligible finders introducing subscribers.

• Finder warrants equal to 7 % of units sold may also be issued, matching the terms of the LIFE and FT warrants.

• Use of Proceeds

• Net proceeds will fund fieldwork, IP surveys, and drilling at N2 Gold Project.

• Specific allocation for the LIFE Offering detailed in the offering document.

• Exploration Program

• Total planned drill program: 20,000 m (Phase 1 = 10,000 m fully funded).
• Phase 1 targets “A” zone (shallow, continuous historic deposit ~522,900 oz Au) and “RJ” zone (high‑grade historic intercepts up to 51 g/t Au over 0.8 m).

• Working capital prior to financing: ≈ C$5 million; post‑financing expected ≈ C$10.5 million.

• Project Highlights

• Historic resource: ~877,000 oz Au (18 Mt @ 1.4 g/t) plus 243 kt @ 7.82 g/t Au in RJ zone.

• Base‑metal potential identified with historic Cu assays 200–4,750 ppm and Zn 203–6,700 ppm.

• Cancellation Notice

• The previously announced flow‑through offering dated 22 Sep 2025 has been cancelled.

Notable Quotes

• Deepak Varshney, CEO & Director: “The financing strengthens our balance sheet and positions us to execute a robust 2025 drill program that we believe will unlock significant additional gold resources at N2.”