Formation MetalsInc. said May 4 that it will raise gross proceeds of up to C$3.0 millionto fund bankable feasibility studies at the company's Idaho cobalt project in the U.S. and for generalworking capital purposes.
The company entered into an agreement with Dundee SecuritiesLtd. for the sale of units at a price of 30 Canadian cents apiece.
Each unit will consist of one common share and 0.5 of one commonshare purchase warrant, with a full warrant entitling holders to buy one new shareat 40 cents apiece within a two-year period.
The offer is expected to close on or about May 25.
Formation's preliminary economic assessment for the Idaho projectestimated an after-taxnet present value of about US$113.5 million and an internal rate of return of 24.07%,based on a discount rate of 8.5%.