eCobalt Solutions Inc. (fka ECSIF)

[drkazmd65]

Formation Metals Announces $3 Million Private Placement with Dundee Securities
May 04, 2016

http://www.formationmetals.com/s/News.asp?ReportID=747853

Vancouver, B.C., May 4, 2016, Formation Metals Inc. (FCO-TSX) (the "Company" or "Formation") announces today that it has entered into an agreement with Dundee Securities Ltd. (the "Agent") under which the Agent has agreed to offer for sale, on a "best efforts" private placement basis, units of the Company (the "Units") at a price of C$0.30 per Unit for total gross proceeds of up to approximately C$3,000,000 (the "Offering"). Each Unit shall consist of one common share of the Company (a "Share") and one-half of one common share purchase warrant (each full warrant, a "Warrant"). Each Warrant shall entitle the holder thereof to acquire one Share at a price of C$0.40 for a period of 24 months following the Closing Date.

The closing of the Offering is expected to occur on or about May 25, 2016 and is subject to the completion of formal documentation and receipt of regulatory approvals, including the approval of the Toronto Stock Exchange. The Units issued in connection with the Offering will be subject to a statutory hold period in accordance with applicable securities legislation.

The Company intends to use the net proceeds of the Offering to fund bankable feasibility level technical studies of the Company's Idaho Cobalt Project and for general working capital purposes.

About Formation Metals Inc.

Formation Metals Inc.'s primary asset, the Idaho Cobalt Project, remains the sole, near term, fully environmentally permitted, primary cobalt deposit in the United States and offers a unique potential for North American consumers to secure an ethically sourced, environmentally sound supply of battery grade cobalt chemicals, mined safely and responsibly in the United States. www.formationmetals.com. E.R. (Rick) Honsinger, P.Geo., Vice President of the Company, is the Qualified Person as defined by National Instrument 43-101 who has supervised the preparation of this news release and has approved its contents.

Formation Metals Inc.

"J. Paul Farquharson"

J. Paul Farquharson
President & C.E.O.

For further information please contact:
Formation Metals Inc., 1810 -- 999 West Hastings Street, Vancouver, BC, V6C 2W2
Tel: [phone] - Email: [e-mail] -- Web: formationmetals.com