Formation Metals raises $8.46M, expands N2 drilling to 30,000 metres

Formation Metals Inc. (CSE: FOMO) closed the second tranche of its private placement, raising $8.46 million in gross proceeds. The company issued 17.8 million units at $0.37 each and 4.5 million flow-through units at $0.41 each.

The Vancouver-based mineral exploration company now has working capital of approximately C$12.7 million with zero debt. Including provincial tax credits from Quebec, Formation's exploration budget for 2025-2026 is set at $8.1 million.

Formation expanded its planned drill program at the N2 Gold Property to 30,000 metres following the successful financing closure. The N2 property hosts a historic resource of approximately 870,000 ounces across multiple zones.

The drilling program will focus on discovery drilling at new targets along mineralization strikes at the A, RJ and Central zones in the northern part of the property. The program also includes infill and expansion targets in these zones.

The A Zone contains 522,900 ounces at 1.52 g/t gold grade, with 15,000 metres drilled historically across 1.65 km of strike. The RJ Zone holds 61,100 ounces at 7.82 g/t gold grade, with only 900 metres of strike drilled and 4.75 km remaining to be tested.

Formation entered a consulting agreement with Plutus Invest and Consulting GmbH for marketing and communications services over 12 months, paying up to €250,000. The company also extended its marketing agreement with 1502656 B.C. Ltd. for six months with a budget of up to $350,000.

The N2 Gold Project comprises 87 claims totaling 4,400 hectares in Northwestern Quebec's Abitibi sub province. The property contains six primary mineralized zones, each open for expansion along strike and at depth.

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