Formation Metals completes $22.4 million financing to expand drilling

Formation Metals Inc. (CSE: FOMO) closed a non-brokered private placement raising $22.4 million through the issuance of 49.8 million units, the company announced May 22.

The financing was completed in two tranches, with the first closing May 19 for $12.6 million and the second closing May 21 for $9.9 million. The company issued various unit types at prices ranging from $0.37 to $0.596 per unit, including hard dollar units, flow-through units, and Quebec flow-through units.

Formation Metals plans to use the proceeds to expand its drilling program at the N2 Gold Project in Quebec from 30,000 metres to 75,000 metres. The company now has working capital of approximately $30.7 million with zero debt.

The N2 Gold Project contains a historic resource of approximately 871,000 ounces, comprising 18 million tonnes grading 1.4 g/t gold across four zones and 243,000 tonnes grading 7.82 g/t gold across the RJ zone. The project is located 25 kilometres south of Matagami, Quebec.

Each unit consists of one common share and one warrant exercisable at $0.596 per share for 36 months. The company paid $816,768 in finder fees and issued 1.5 million finder warrants in connection with the offering.

Formation Metals intends to renounce qualifying expenditures to flow-through subscribers with an effective date no later than December 31, 2026, and to incur such expenditures by December 31, 2027.

The securities are subject to a four-month hold period for Canadian purchasers and were not registered under U.S. securities laws.

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