Gediminas Jasionis
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Formation Metals Inc. (TSE:FCO) (PINK:FMEWF) Accepts Financing Proposal

by Gediminas Jasionis Aug 2, 2011
fco_chart.pngFormation Metals Inc. (TSE:FCO) (PINK:FMEWF) is about to secure a financing deal that will allow the company to construct a cobalt mine in Idaho.

FCO stock price continues to correct back down after gaping up last week in reaction to the news. The shares are still up 10% from last Thursday's closing price and the value should not go down quickly considering the nature of news and the related interest from traders. The trading volume remains heavy - the 350 thousand recorded last Friday will be topped today, showing a very meaningful interest.

Formation said on Friday they have accepted BNP Paribas commitment to finance FCO's Idaho Cobalt Project. Paribas is prepared to provide $79.5 million through a credit facility consisting of two kinds of revenue bonds directed to finance different recovery zones. $58.5 million is contemplated for Greenfield cobalt mine in Lemhi County and $21 million for a hydrometalurgical plant in Shoshone County, Idaho.

formation_logo.jpgThe new cobalt mine will have the capacity to process 800 tons of ore per day, producing 52 tons of cobalt available for shipment to the Big Creek Hydrometallurgical Complex in Kellogg, Idaho. The facility should be producing 1,500 tons pure cobalt and 1360 tons of copper cathode per year.

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