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Formation Metals Inc. Formation Metals Inc.

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Formation Metals Inc.

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January 30, 2013 - MINESITE.COM - published today an update on Formation Metals Idaho Cobalt Project
"Formation Metals Presses On With Development Work as Financing Talks Continue".


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November 16, 2012 - The Silver Institute issued a media advisory from Thomson Reuters GFMS
" A Rebound In Investment Demand Stemming From Continuing Loose Monetary Policies Expected To Drive Silver Prices Towards And Possibly Over $50 during 2013 ".


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October 10, 2012 - MINESITE.COM - published today an update on Formation Metals Idaho Cobalt Project
"Formation Metals Presses On With Development Work as Financing Talks Continue".


October 10, 2012 - Al Korelin of the Korelin Economics Report Interviewed Formation Metals' VP Corporate Communications, Rick Honsinger for his October 6, 2012 Weekend Show (Segment 3).

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June 14, 2012 - The Challis Messenger- Todd Adams - Challis Idaho published today an update on Formation Metals Idaho Cobalt Project near Salmon, Idaho and on the Sunshine Precious Metals Refinery in Kellogg, Idaho.

Idaho Cobalt Project (ICP) mine, mill construction possible this summer -- Salmon, ICP officials are advertising for employees and hoping to put together another $80-$90 million in financing to begin major development work on their mine and mill this summer. The project is about 50 miles north of Challis in the Panther Creek drainage.If all goes well, said Bill Scales, president of Formation Capital USA in ....




March 31, 2012 - Al Korelin of the Korelin Economics Report Interviewed Formation Metals' VP Corporate Communications, Rick Honsinger for his April 1, 2012 Weekind Show.

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March 24, 2012 - Al Korelin of the Korelin Economics Report Interviewed Formation Metals' VP Corporate Communications, Rick Honsinger for his March 24, 2012 Weekind Show.

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November 29, 2011 - Northern Idaho's SHOSHONE NEWS-PRESS published today an update on Formation Metals Idaho Cobalt Project and the recent company announcement regarding the tax exempt industrial bonds.


November 2, 2011 - Formation Metals has recently been covered by various newsletter and media in response to its share performance during these current volatile financial markets. The links below include:

1) Peter Grandich discusses the state of the markets with Michael Campbell on Saturday, Oct 29th on the Money Show and discusses Formation Metals around the 25 minute mark.

2) MicroCap.com has posted an in-depth report on Formation Metals by by Danny Deadlock.

3) Al Korelin of the Korelin Economics Report interviewed Rick Honsinger, Formation Metals' V.P. Corporate Communication, for his Oct 29, 2011 Weekend Show, starting in Segment 7.

4) Peter Grandich published a general response from Formation Metals' V.P. Corporate Communcations to shareholders, commenting on the currrent share price and status of the Cobalt Project.

Formation Metals Inc.
www.FormationMetals.com


September 22, 2011 - Formation Metals has posted a video today of a flyover of its Idaho Cobalt Project mine site and a ground tour of its earthworks operations. This short video was taken on August 26 and 27 and exemplifies the scale of the construction operation.

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September 13, 2011 - Korelin Economics Report (www.kereport.com) published a video interview with Rick Honsinger, V.P. Corporate Communications of Formation Metals, who discussed the Idaho Cobalt Project while conducting a tour of their refining facility in northern Idaho in August 2011.


September 9, 2011 - Minesite.com published an update report today on Formation Metals' Idaho Cobalt Project:

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July 28, 2011 - "The Long and Winding Road to an Idaho Cobalt Mine" - Kip Keen of Mineweb.com interviews Formation Metals' CEO Mari-Ann Green

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May 26,2011 - InvestmentPitch.com an official partner of Reuters Insider Network, has highlighted Jennings Capital Inc.'s recent research report on Formation Metals' Idaho Cobalt Mine in a three minute video accessible by clicking on the image below.


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April 7, 2011 - Peter Grandich comments on Formation Metals' April 06, 2011 news release regarding an update on it's Idaho Cobalt Project.

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January 14, 2011 - Idaho Falls Post Register - Laura Zuckerman

SALMON, IDAHO -- A planned cobalt mine expected to bring as many as 200 jobs to Lemhi and Shoshone counties is a step closer to reality thanks to a tax-free bond arrangement made possible, in part, by federal stimulus funds.

Officials with Formation Metals, a Canadian mining company that owns the Lemhi County-based Idaho Cobalt Project, said Thursday the mining operation near Salmon should be in production by 2012.

"It's a big step for us," spokesman Rick Honsinger said.

Once operational, the mine will produce 32 tons of cobalt concentrate daily. The metal is in high demand for rechargeable batteries, such as those used in hybrid vehicles.

The deal was sealed in advance of the Dec. 31 deadline for tapping tax-exempt bonds, whose purposes and amounts were broadened under the 2009 federal stimulus package.

The mine, mill and concentrator for the metal all are planned for Lemhi County, and a processing plant -- capable of producing 1,500 tons of high-purity cobalt per year -- is located in Shoshone County.

The two counties have joined forces and both played key roles in boosting the prospects of the project.

A retooling of requirements for municipal tax-free bonds under the federal stimulus program allowed Lemhi and Shoshone to issue nearly $78 million in tax-free bonds.

Those bonds are designed to make the project more appealing to investors, who won't have to pay taxes on any interest they earn. They also benefit the mining company by allowing it to tap into better lending rates.

Last spring, the Idaho Cobalt Project finished mine site preparation and intends to launch the earth-moving, concrete-pouring construction phase in the coming months.

Under the arrangement -- and state law -- the counties have no obligation and no liability for repayment of the bonds. That will come solely from revenues realized by the mining company.

Attorney Mike Stoddard of Boise, who advised Lemhi County on the bond arrangement, said it was crafted with every protection for the counties. The counties act as conduits for the bonds.
Joe Proksch, a former Lemhi commissioner who serves on the county's industrial development panel, said the economic boost to Lemhi County long has been anticipated.

"We're eyeing 120 employees here, and that kind of activity has a multiplier effect, with increased spending by people who will live in town and work there," he said.

A median household income of $34,890 places Lemhi County 42nd among Idaho's 44 counties. The number of county residents who fell below the poverty line, meanwhile, rose from 15.4 percent in 2008 to 18.5 percent in 2009, according to U.S. census data.

Will Jenson, regional economist in Idaho Falls for the Idaho Department of Labor, said the mine will provide an economic boost.

"Now we're seeing the money come in for the project, it could mean great things for them and for the locals," he said.

Comment on this story on Post Talk at www.postregister.com/posttalk/ .


The Prospector - Peter Grandich

November 23, 2010 - Back in September I gave an update in The Prospector on one of my clients, Formation Metals Inc (TSX-FCO), a company I have been following for a number of years. As a refresher, Formation Metals, after over a decade of exploration, development, feasibility and permitting, has reached the financing phase for construction and production on their 100% owned Idaho Cobalt Project. Why then the mention of Rare Earth metals? More on that in a moment.

Recall that cobalt is an essential metal used for the manufacture of key components for jet engines, and re-chargeable batteries for wireless devices and hybrid vehicles. A Lithium-Ion battery, the preferred choice for next generation re-chargeable batteries for electric and hybrid-electric cars, contain on average 4-5% lithium, while they can contain over ten times that amount of cobalt by weight. As the US is the second largest consumer of this critical metal (China is the first) and there is no current domestic source for cobalt, Formation Metals' Idaho Cobalt Project has been getting a lot of attention lately - and for good reason:

* The Idaho Cobalt Project is a primary cobalt mine, unique to the U.S. The vast majority of cobalt is produced worldwide is as a by-product from copper and nickel mining operations * The cobalt to be produced is expected to meet very high purity standards suitable for critical applications in the super-alloy sector, such as in the manufacture of jet engine turbine blades * The Company not only owns the mine 100%, but also the refinery that will produce the high purity cobalt metal * In addition to cobalt, the Idaho Cobalt Project is expected to produce by-product copper and gold.

Aside from the above, a potential new player has joined the list of by-product production -Rare Earth Elements.

Of course the Rare Earth Elements (REE's) just didn't recently appear - they have been there all along (in albeit lower concentrations), but it seems only now that management has decided to talk about them. "The occurrence of REE's in our mineralized horizons has been known for quite some time", commented Rick Honsinger, a geologist and V.P. Corporate Communications with Formation Metals, "but we have never had enough sample material to initiate preliminary metallurgical test work to determine the viability of concentrating, extracting and separating the REE's until this latest round of drilling."

In October and again earlier this month, Formation Metals announced results of its "mine optimization" drilling, with positive results that have extended the known strike length of the deposit and is expected to ultimately increase its reserve and resource base and hence mine life. The drilling was initiated to assist in mine optimization studies, which basically boils down maximizing ore production as early in mine life as possible, resulting in a positive impact on the overall economics of the project. No doubt these studies are being done to help appease potential mine financiers.

The second goal of the diamond drill program was to provide material for metallurgical test work on the REE's. In their latest news release dated November 5, 2010, the Company stated "Any potential future REE production would be considered by-product production with provisions for mining, milling and concentrating already included in the existing approved mine plan." This is an important point - and the reason I believe that Formation Metals is an interesting way to play the REE markets while hedging against not being able to extract any REE's at all - the success of their project has nothing to do with REE production. If at the end of the day they find that it is not feasible to extract the REE's, then the investor knows that the refuge of cobalt, copper and gold production is still there - at least according to the company's Feasibility Study and their National Instrument 43-101 Technical Report.

Getting back to cobalt, I note the company, in partnership with Puget Ventures and Dig Media, has created a CobaltInvestingNews.com website, designed to provide its audience with insight on the economics influencing the cobalt markets and on the very limited public companies that are involved in primary cobalt exploration and production. The website also highlights another point worthy of note; being a future North American producer, Formation Metals' cobalt will be "conflict free" with a known supply chain. Recent legislation in the United States has called for electronic manufactures to provide disclosure on the sources of the material used in the production of their products - cobalt is widely used in everything from computers to magnets. Currently, much cobalt is derived from overseas countries with serious social responsibility and sustainability issues.

Ultimately of course, the Company needs to secure an adequate financing to continue construction (they have already completed Stage I), which based on my discussions with management, is more a matter of when, not if. The capitalization expenditures to build the mine are on the order of some US$140 million, relatively not expensive in mining terms and they seem quite confident that positive updates on financing progress, perhaps announced in the form of tranches, can be out before the end of the year. Based on what I know about this management's track record of tenacity, whether they announce anything on financing before the end of the year or not, they are not about to give up until it's done.

__________________________________________

Peter Grandich is the founder of Grandich.com and Grandich Publications, LLC, and is editor of The Grandich Letter which was first published in 1984. On his internationally followed blog he comments daily about the world's economies and financial markets and posts his views on social and political topics. The result is an insightful and intuitive look at business, finances and the world, set in a vernacular that just about anyone can understand.

He is a member of the National Association of Christian Financial Consultants, and a long-standing member of The New York Society of Security Analysts and The Society of Quantitative Analysts.

Visit the Prospector Website for this article


Prospector News - Peter Grandich
September, 20, 2010 -- I have followed Formation Metals
for a number of years and have yet to come across a more dedicated management team, determined to turn their Idaho Cobalt Project into the Western Hemisphere's first primary cobalt mine (and refinery) that will be capable of producing high purity cobalt metal, suitable for critical applications in the super-alloy and re-chargeable battery sectors.

What does that mean? Formation plans to produce the metal necessary for the manufacture of key components for jet engines, wireless devices and hybrid vehicles - the US is the second largest consumer of this critical metal (China is the first) and yet has no domestic source. A little known, and largely overlooked fact, is that a Lithium-Ion rechargeable battery, the preferred choice for next generation re-chargeable batteries for electric and hybrid electric batteries, contain on average 4-5% lithium, while they can contain up to 60% cobalt by weight. "I wish they had called them Cobalt-Ion batteries", commented Rick Honsinger, Geologist and V.P. Corporate Communications for Formation Metals Inc, "that would have made my job a lot easier".

The vast majority of cobalt produced worldwide is mined as by-product metal from copper and nickel mines across the globe, with the DRC (Democratic Republic of the Congo) being a major supplier. As a result, possible cobalt supply chain disruptions and conflict mineral concerns overhang the cobalt supply industry, and Formation Metals is a way for consumers to hedge those concerns with Formation's U.S. home grown cobalt mine located just outside of the town of Salmon, Idaho.

For the last several years Formation has been advancing their cobalt deposit through the engineering, feasibility, and permitting stages. The result of their efforts has been the development of a fully environmentally permitted, economically feasible, National Instrument 43-101 compliant, shovel ready underground primary cobalt deposit. Their Idaho Cobalt Mine is currently in the mine finance stage with Stage I construction (consisting primarily of tree clearing and site preparation) already completed. Secondary by-product minerals include gold and copper and more recently they announced that they are evaluating metallurgy and economics of heavy Rare Earth Minerals known to occur on the project. "We are currently in the middle of a drill optimization program on the property", commented Mr. Honsinger, "while the primary focus of the current drill program is to assist in mine design optimization, we're hopeful to obtain sufficient samples to more fully evaluate the REE's on the project." It seems REE's could possible join gold and copper as future by-product production material from this cobalt mine.

It was less than a year ago, in November of 2009 when Formation received final approval to commence construction on the project. Stage I construction site preparation started in the new-year and was completed by the spring. Stages II and III, the more capital intensive construction stages involving earth moving, concrete pouring and underground development, are awaiting the successful completion of mine finance.

FCO's Bankable Feasibility Study calls for a capitalization expenditure of US$138.7 million. They have already spent approximately US$15 million on long lead time mine equipment such as the ball mill and flotation cells, which are stored in a nearby staging area awaiting transport to the minesite. I've been advised they have also reduced the cap-ex by approximately US$10 million by optimizing the recovery flow sheets for cobalt at the refinery as a result of their in house engineers' and metallurgists' review and optimization the feasibility study.

The mine financing is currently expected to be comprised of off-take (selling a portion of future production forward) and VPP arrangements (Volumetric Production Payments - selling a portion of your revenue stream forward), Commercial Bank Debt and lastly, the issuance of Tax Exempt Industrial Bonds. These are all minimally dilutive means of raising the necessary capital to build the mine.

While progress is being made on all the above financing methods, the issuance of tax exempt industrial bonds, seems to be coming to fruition. In their recent news release dated September 16, 2010 they announced they had received a Stimulus Act Recovery Zone Facility Bond allocation of US$46.7 million from state of Idaho. This allocation allows the local Industrial Development Corporations to issue tax-exempt bonds with Formation Metals being the ultimate beneficiary. They are also looking to secure a similar amount in Solid Waste Bonds, which are also tax exempt. In their news release, they state:

It seems that this fall could see all the elements come together to have Formation Metals finally cross the goal line.

________________________________________________________________________

Peter Grandich is the founder of Grandich.com and Grandich Publications, LLC, and is editor of The Grandich Letter which was first published in 1984. On his internationally followed blog he comments daily about the world's economies and financial markets and posts his views on social and political topics. The result is an insightful and intuitive look at business, finances and the world, set in a vernacular that just about anyone can understand.

He is a member of the National Association of Christian Financial Consultants, and a long-standing member of The New York Society of Security Analysts and The Society of Quantitative Analysts.



Formation Capital Corporation featured on The Opportunity Show, Sep 14, 2009



Formation Capital Corporation featured on The Opportunity Show, Sep 8, 2009



Formation Capital - A Grandich Client Again, September 6, 2009



Formation Capital Corporation featured on The Opportunity Show, Sep 3, 2009



The Mining Journal features Mari-Ann Green - August 21, 2009


Click on the image below to view the news clip on CNBC dated Aug 13, 2009, entitled "Batteries: The New Oil?" that discusses the reliance of U.S. firms on foreign sources for such elements as lithium, cobalt and REE's for the manufacture of their rechargeable batteries.




Click on the image below to view CNBC's news piece, dated June 10, 2009, entitled "Dollars and Danger -- Cobalt and the Congo", referring to the Illegal Mining of Cobalt in the Democratic Republic of Congo.




Click on the "CEO" icon below to view Business Televisions interview with Formation Capital Management July, 2009.

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BTV, a half-hour weekly business program aired on television internationally, profiles emerging public companies across Canada and the USA. With Host Taylor Thoen, BTV features companies at their location, interviews the company's key executives, features their products and services and unveils their plans for future growth.


View Interview with ExploResources March 2008


Click on the Link Below to view Business Televisions interview with Formation Capital Management February, 2007.

BTV

BTV, a half-hour weekly business program aired on television internationally, profiles emerging public companies across Canada and the USA. With Host Taylor Thoen, BTV features companies at their location, interviews the company's key executives, features their products and services and unveils their plans for future growth.



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