16 Dec 2010 14:53 ET
MarketwireFormation Metals Inc.December 16, 2010 - 02:52:47 PMFormation's Stimulus Act Recovery Zone Bond Allocation Increased to US $77.7Million by State of IdahoVANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 16, 2010) - Formation MetalsInc. (TSX:FCO) ("Formation") is pleased to announce that its 100% ownedsubsidiary, Formation Capital Corporation, U.S., (the "Company") has beenissued two revised Certificates of Allocation from the State of Idahoauthorizing an additional US $31 million in Federal Stimulus Program RecoveryZone Facility Bonds with the Company as Ultimate Beneficiary. The bonds are tobe issued by The Industrial Development Corporation of Lemhi County, Idaho andthe Industrial Development Corporation of Shoshone County, Idaho. Any fundsreceived from the sale of tax exempt bonds will be used to develop theCompany's 100% owned Idaho Cobalt Project mine located in Lemhi County andretro-fit its hydrometallurgical facility located in Shoshone County, Idaho(the "ICP")."This (US) $31 million is in addition to the allocation of (US) $46.7 milliongranted by Idaho's Department of Commerce to the Company in September," statedMari-Ann Green, Formation's Chairman and C.E.O. (see Company news releasedated September 16, 2010). "The Company, along with the two IndustrialDevelopment Corporations and the bond underwriter, can now concentrate itsefforts on getting the Recovery Zone Facility Bonds issued prior to theDecember 31, 2010 expiration date for this category of bonds. This affords theCompany the flexibility to apply for approximately (US) $45.4 million in SolidWaste Private Activity Bonds at a future date, as these types of bonds do nothave an expiry date. Following the expected issuance of the Recovery ZoneFacility Bonds, the Company will continue to work to secure credit approvalfor long term bank project financing as outlined in the Company's news releasedated November 30, 2010," Ms. Green concluded. The Company has engaged Thornton Farish Inc., Investment Bankers as theunderwriter for the Recovery Zone Facility Bonds. Thornton Farish is widelyrecognized as one of the early pioneers of industrial revenue bond financing.The firm has extensive expertise and experience in all forms of tax-exemptbond financing; including recovery zone facility bonds and solid waste bonds.The 100% owned Idaho Cobalt Project is a unique, fully permitted primarycobalt deposit that will be capable of producing high purity cobalt metal.Cobalt is used in a wide variety of environmental and high-tech applicationsthat include the re-chargeable battery and aero-space sectors.Formation Metals Inc. is dedicated to the principles of environmentally soundmining and refining practices, and believes that environmental stewardship andmining can co-exist. Formation trades on the Toronto Stock Exchange under thesymbol FCO.Formation Metals Inc.Mari-Ann Green, C.E.O.This press release contains "forward-looking statements" within the meaning ofapplicable Canadian securities legislation. Generally, forward-lookingstatements 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, performanceor achievements of the Company to be materially different from those expressedor implied by such forward-looking statements. Although the Company hasattempted to identify important factors that could cause actual results todiffer materially from those contained in forward-looking statements, theremay be other factors that cause results not to be as anticipated, estimated orintended. There can be no assurance that such statements will prove to beaccurate, as actual results and future events could differ materially fromthose anticipated in such statements. Accordingly, readers should not placeundue reliance on forward-looking statements. The Company does not undertaketo update any forward-looking statements that are contained herein, except inaccordance with applicable securities laws. Further information on the Companyis available at www.sedar.com.The statements contained in this news release in regard to Formation MetalsInc. that are not purely historical are forward-looking statements within themeaning of the Private Securities Litigation Reform Act of 1995, includingFormation Metals Inc.'s beliefs, expectations, hopes or intentions regardingthe future. All forward-looking statements are made as of the date hereof andare based on information available to the parties as of such date. It isimportant to note that actual outcome and the actual results could differ fromthose in such forward-looking statements. Factors that could cause actualresults to differ materially include risks and uncertainties such astechnological, legislative, corporate, commodity price and marketplacechanges.FOR FURTHER INFORMATION PLEASE CONTACT: Formation Metals Inc. E.R. (Rick) Honsinger, P.Geo. V.P. CorporateCommunications 604-682-6229 inform@formationmeta
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