FCO'd!Certainly, providing a lot of controversy these days! Does the right-hand know what the left-hand is doing? "Willi go round in cirlcles, like a big bird in the sky"!
FORMATION METALS TERMINATES REFINERY SALE AGREEMENT WITH WATERTON
Formation Metals Terminates Refinery Sale Agreement with Waterton
Vancouver, B.C., June 26, 2013, Formation Metals Inc. (FCO-TSX) ("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.
Formation Metals Inc.
"Mari-Ann Green"
Mari-Ann Green
C.E.O.
For further information please contact: E.R. (Rick) Honsinger, P.Geo., V.P. Corporate Communications Formation Metals Inc., 1810 -- 999 West Hastings Street, Vancouver, BC, V6C 2W2 Tel: 604-682-6229 - Email:inform@formationmetals.com -- Web: formationmetals.com