Thanks for info; Not long ago they paid $12mil for the refinery - http://www.formationmetals.com/s/CobaltNews.asp?ReportID=608023
October 11, 2013
Formation Metals Secures Proceeds of US$12 Million From Sale of Refinery
Vancouver, B.C. October 11, 2013, - Formation Metals Inc. (FCO-TSX) ("Formation" or the "Company") announced today that it has completed the sale of all of the shares of its indirect wholly-owned subsidiary Formation Metals, U.S. ("FMUS"), whose primary asset is the Sunshine Precious Metals Refinery (the "Refinery"), to Silver Opportunity Partners LLC, a wholly owned subsidiary of Sunshine Silver Mines, ("SSM") for US$12 million cash (the "Sale") as per the Company's news release dated September 16, 2013.
Cormark Securities Inc., financial advisor to the board of directors of Formation (the "Board"), had previously provided an opinion to the Board that the consideration received under the Sale is fair, from a financial point of view, to Formation's shareholders.
In addition, yesterday the Company repaid in full the US$5 million Senior Secured Convertible Note held by a strategic private investor (see Company News Release dated October 17, 2012).
"The Company is now debt free and these additional funds will assist the Company's efforts to review strategic opportunities", stated Mari-Ann Green, C.E.O. of Formation Metals Inc. She continued, "The Company is reviewing opportunities that could include acquisitions, mergers, joint ventures, strategic investments or any combination thereof with a view to enhancing shareholder value".
The Company's flagship project, the Idaho Cobalt Project (the "ICP"), is a fully permitted primary cobalt deposit unique to the Americas that is fundamentally prepared for the commencement of underground development. The Company announced on May 2, 2013, that is was deferring the underground development of the ICP until the market conditions improve and mine financing options for the ICP are more attractive for all stakeholders.
Cobalt continues to be in the news exhibiting an overall upward trend in prices in response to political unrest in the DRC and falling nickel prices wordwide. Cobalt is produced primarily as a by-product of nickel and copper mining and any disruption in those operations would lead to a corresponding decline in cobalt supply.
Formation is a well-established mineral exploration and development company that owns 100% of a fully permitted primary cobalt deposit located in Idaho which has been prepared for the commencement of underground development, pending additional mine financing. Formation has additional interests in base, precious metal and uranium projects in Canada, the United States and Mexico. Formation is dedicated to the principles of environmentally sound mining and refining practices, and believes that environmental stewardship and mining can co-exist. The Company trades on the Toronto Stock Exchange under the symbol FCO.
Formation Metals Inc.
For further information please contact:
E.R. (Rick) Honsinger, P.Geo., V.P. Corporate Communications
Formation Metals Inc., 1810 -- 999 West Hastings Street, Vancouver, BC, V6C 2W2
Tel: 604-682-6229 - Email: firstname.lastname@example.org -- Web: www.formationmetals.com