Formation arranges $6-million in private placements
Executive Summary
- Formation Metals Inc. announced a non‑brokered private placement of up to 10,810,810 LIFE units at $0.37 per unit for gross proceeds of up to $4 million.
- Concurrently, the company will raise up to $2 million through a separate private placement of up to 4,878,049 flow‑through (FT) units at $0.41 per unit.
- Net proceeds are earmarked for fieldwork and further exploration on the N2 gold project in Quebec; the previously announced FT offering dated Sept. 22 2025 is cancelled.
Key Details
- LIFE Offering
- Units offered: up to 10,810,810 LIFE units
- Price per unit: $0.37 (CAD)
- Gross proceeds target: $4 million
- Composition of each LIFE unit: 1 common share + 1 common‑share purchase warrant
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Warrant terms: Exercise price $0.54, exercisable for 36 months after closing; no statutory hold period.
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Flow‑Through (FT) Offering
- Units offered: up to 4,878,049 FT units
- Price per unit: $0.41 (CAD)
- Gross proceeds target: $2 million
- Composition of each FT unit: 1 flow‑through common share + 1 transferable warrant
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Warrant terms: Exercise price $0.62, exercisable for 24 months after closing; statutory hold period of 4 months + 1 day.
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Finder Compensation
- Cash fee up to 7 % of gross proceeds paid to eligible finders introducing subscribers.
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Additional finder warrants equal to 7 % of units sold may be issued, matching the terms of the respective LIFE or FT warrants.
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Use of Proceeds
- Net proceeds will fund fieldwork and exploration activities on Formation’s flagship N2 gold project (e.g., drilling, geophysical surveys).
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Specific allocation for the LIFE offering is detailed in the offering document.
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Cancellation Notice
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The previously announced FT offering dated Sept. 22 2025 has been cancelled.
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Project Summary (Context)
- N2 gold project comprises ~4,400 ha across 87 claims in the Abitibi sub‑province, with a historic resource of ≈877,000 oz Au.
- Key zones: A zone (~523k oz at 1.52 g/t Au) and RJ zone (~61k oz at 7.82 g/t Au).
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Ongoing exploration aims to expand gold mineralization and assess significant copper‑zinc potential (assays up to 4,750 ppm Cu, 6,700 ppm Zn).
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Qualified Person
- Technical content reviewed by Babak Vakili Azar, P.Geo., qualified person under NI 43‑101.
Notable Quotes
(No direct quotes were provided in the release.)