eCobalt Solutions Inc. (fka ECSIF)

[drkazmd65]

Perhaps a contributing factor to yesterday's fun,....

I will state - categorically - that those guys who took the private placement have already potentially seen some huge theoretical paper gains.

http://www.formationmetals.com/s/News.asp?ReportID=751151

June 01, 2016
Formation Metals Completes Oversubscribed $4.4M Private Placement


Not for distribution to U.S. news wire services or dissemination in the United States.

VANCOUVER, BRITISH COLUMBIA

Formation Metals Inc. ("Formation" or the "Company") (TSX:FCO) is pleased to announce that it has completed its previously announced offering with the majority of the over-allotment option exercised (the "Offering") pursuant to which it has issued and sold 14,755,200 units of the Company (the "Units") at a price of C$0.30 per Unit (the "Issue Price") for total gross proceeds of C$4,426,560. On a fully diluted basis, the Units sold represents 24.99% of pre-closing issued and outstanding common shares. Management and Insiders subscribed to 8% of the Offering.

Each Unit purchased in the Offering consisted 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 entitles the holder thereof to acquire one Share at a price of $0.40 for a period of 24 months following the Closing Date. The Offering was completed on a private placement basis by Dundee Securities Ltd. ("Dundee"). The Units issued in connection with the Offering are subject to a statutory hold period in accordance with applicable securities legislation.

The Company paid a total commission fee of $177,886 and issued 592,954 warrants ("Compensation Warrants") to Dundee and other agents. The Compensation Warrants have an exercise price of $0.37 and each Compensation Warrant entitles the holder thereof to acquire one Share for a period of 24 months following the Closing Date. The Company intends to use the net proceeds of the Offering to fund bankable feasibility level technical studies on the Company's Idaho Cobalt Project and for general working capital purposes.

"The closing of this financing is a major advancement in moving our Idaho Cobalt Project towards production." stated Paul Farquharson, President and CEO of Formation Metals Inc. He continued, "These funds are expected to allow us to produce a bankable feasibility study that will assist the Company in moving forward on project capex financing".

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. 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: www.formationmetals.com
________________________________________


This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered, sold or resold in the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Cautionary Statement Regarding Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Statements in this news release pertaining to expected finance completion date are forward-looking statements. These forward-looking statements are based on assumptions and address future events and conditions and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. Such projections are and will inevitably always be dependent on assumptions about future mineral prices and development costs which will be subject to fluctuation due to global and local economic and industry conditions. Further information regarding risks and uncertainties which may cause results to differ from those contained in forward-looking statements is included in filings by the Company with securities regulatory authorities and is available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Although the Company has disclosed that 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, there is no guarantee that the Company will attain commercial production of such cobalt chemicals for use in the rechargeable battery sector. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws.

The statements contained in this news release in regard to Formation Metals Inc. that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including Formation Metals Inc.'s beliefs, expectations, hopes or intentions regarding the future. All forward-looking statements are made as of the date hereof and are based on information available to Formation Metals Inc. as of such date. It is important to note that actual outcome and the actual results could differ from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as technological, legislative, corporate, commodity price and marketplace changes.