Formation Metals Terminates Refinery Sale Agreement with Waterton
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/26/13 -- Formation Metals Inc. (TSX: FCO) ("Formation" or "the Company") ("Formation" or "the Company") announced today that it has advised certain entities that are associated or affiliated with Waterton Global Resource Management, Inc. ("Waterton") that the agreement (the "Letter Agreement") outlined in the Company's news release of June 6, 2013 regarding the potential sale of its Sunshine Precious Metals refinery, copper refinery and certain lands (the "Refinery Assets") at the Big Creek Hydrometallurgical Complex (the "Complex") in Shoshone County, Idaho is terminated.
Among other things, and as set forth in the Company's June 6th news release, the Letter Agreement required negotiation of the definitive acquisition agreement and completion of the transaction by June 20, 2013, unless mutually extended, as well as any required regulatory approvals. As also noted, Cormark Securities Inc. has been engaged to provide a fairness opinion on the transaction.
A definitive acquisition agreement was not executed by June 20, 2013 despite Formation's good faith efforts to complete such an agreement and the parties have not agreed to an extension.
"Formation previously determined that the Refinery Assets are no longer required for the development of its flagship Idaho Cobalt Project," stated Mari-Ann Green, CEO of Formation Metals Inc. She continued, "As a result, Formation is assessing all of its options to maximize shareholder value. In the meantime, operations at the refinery are continuing."
About Formation
Formation is a well-established mineral exploration, development and refining company who owns 100% of a fully permitted primary cobalt deposit located in Idaho which has been prepared for the commencement of underground development, pending additional mine financing. Formation has additional interests in base, precious metal and uranium projects in Canada, the United States and Mexico. Formation is dedicated to the principles of environmentally sound mining and refining practices, and believes that environmental stewardship and mining can co-exist. The Company trades on the Toronto Stock Exchange under the symbol FCO.
Mari-Ann Green, C.E.O.
This news release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Generally, forward-looking statements can be identified by the use of forward- looking terminology. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws. Further information on the Company is available at www.sedar.com.
The statements contained in this news release in regard to Formation Metals Inc. that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including Formation Metals Inc.'s beliefs, expectations, hopes or intentions regarding the future. All forward-looking statements are made as of the date hereof and are based on information available to the parties as of such date. It is important to note that actual outcome and the actual results could differ from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as technological, legislative, corporate, commodity price and marketplace changes.
Contacts:
Formation Metals Inc.
E.R. (Rick) Honsinger, P.Geo.
V.P. Corporate Communications
604-682-6229
inform@formationmetals.com
www.formationmetals.com