Formation Metals Closes $2.33M at up to $0.50/Unit Increasing Exploration Budget to ~$5.1M, Expands Maiden Drill Program at the Advanced N2 Gold Project to Fully Funded 10,000 Metres
Formation Metals (OTCQB:FOMTF) has successfully closed a $2.33M financing through multiple tranches of flow-through units priced up to $0.50/unit. The company has expanded its maiden drill program at the N2 Gold Project in Quebec to 10,000 metres, fully funded as part of a planned 20,000-metre multi-phase program.
The N2 Gold Project hosts a historic resource of ~870,000 ounces gold, including 18 Mt grading 1.4 g/t Au (~809,000 oz) across four zones and 243 Kt grading 7.82 g/t Au (~61,000 oz) in the RJ zone. With ~$5M in working capital and a $5.1M exploration budget for 2025-2026, Formation is positioned to complete its $5M work commitment to earn 100% of N2 four years ahead of schedule.
The program will focus on the A Zone, which contains ~522,900 oz Au with only 35% of strike drilled, and the high-grade RJ Zone, where historical drilling revealed intercepts up to 51 g/t Au. Drilling is expected to commence in early August 2025.
Formation Metals (OTCQB:FOMTF) ha concluso con successo un finanziamento da 2,33 milioni di dollari attraverso più tranche di unità flow-through a un prezzo fino a 0,50 dollari per unità. La società ha ampliato il suo programma di perforazione iniziale presso il Progetto Oro N2 in Quebec a 10.000 metri, completamente finanziati come parte di un programma multi-fase pianificato di 20.000 metri.
Il Progetto Oro N2 ospita una risorsa storica di circa 870.000 once d'oro, inclusi 18 Mt con una gradazione di 1,4 g/t Au (~809.000 oz) distribuiti su quattro zone e 243 Kt con una gradazione di 7,82 g/t Au (~61.000 oz) nella zona RJ. Con circa 5 milioni di dollari di capitale operativo e un budget di esplorazione di 5,1 milioni di dollari per il 2025-2026, Formation è in una posizione favorevole per completare il suo impegno di lavoro da 5 milioni di dollari per acquisire il 100% del progetto N2 con quattro anni di anticipo rispetto al previsto.
Il programma si concentrerà sulla Zona A, che contiene circa 522.900 once d'oro con solo il 35% della lunghezza della vena perforata, e sulla zona ad alta gradazione RJ, dove perforazioni storiche hanno rilevato interruzioni fino a 51 g/t Au. Le perforazioni dovrebbero iniziare all'inizio di agosto 2025.
Formation Metals (OTCQB:FOMTF) ha cerrado con éxito una financiación de 2,33 millones de dólares mediante múltiples tramos de unidades flow-through valoradas hasta en 0,50 dólares por unidad. La compañía ha ampliado su programa inicial de perforación en el Proyecto de Oro N2 en Quebec a 10.000 metros, totalmente financiados como parte de un programa multifase planificado de 20.000 metros.
El Proyecto de Oro N2 alberga un recurso histórico de aproximadamente 870.000 onzas de oro, incluyendo 18 Mt con una ley de 1,4 g/t Au (~809.000 oz) en cuatro zonas y 243 Kt con una ley de 7,82 g/t Au (~61.000 oz) en la zona RJ. Con unos 5 millones de dólares en capital de trabajo y un presupuesto de exploración de 5,1 millones de dólares para 2025-2026, Formation está posicionada para completar su compromiso de trabajo de 5 millones de dólares para obtener el 100% del proyecto N2 cuatro años antes de lo previsto.
El programa se centrará en la Zona A, que contiene aproximadamente 522.900 onzas de oro con solo el 35% del tramo perforado, y en la zona RJ de alta ley, donde perforaciones históricas revelaron intercepciones de hasta 51 g/t Au. Se espera que la perforación comience a principios de agosto de 2025.
Formation Metals (OTCQB:FOMTF)는 단위당 최대 0.50달러로 가격이 책정된 여러 차례의 플로우스루 유닛을 통해 233만 달러의 자금 조달을 성공적으로 마감했습니다. 회사는 계획된 2만 미터 다단계 프로그램의 일환으로 완전 자금을 확보하여 퀘벡의 N2 금 프로젝트에서 최초 시추 프로그램을 1만 미터로 확장했습니다.
N2 금 프로젝트는 약 87만 온스의 금 역사적 자원을 보유하고 있으며, 4개 구역에 걸쳐 1.4 g/t Au 등급의 1800만 톤(~80만 9천 온스)과 RJ 구역에서는 7.82 g/t Au 등급의 24만 3천 톤(~6만 1천 온스)을 포함합니다. 약 500만 달러의 운전자본과 2025-2026년 탐사 예산 510만 달러를 바탕으로 Formation은 4년 앞당겨 N2 프로젝트의 100% 권리를 획득하기 위한 500만 달러 작업 약속을 완료할 준비가 되어 있습니다.
이 프로그램은 스트라이크의 35%만 시추된 약 52만 2,900 온스의 금을 포함하는 A 구역과, 과거 시추에서 최대 51 g/t Au의 고등급이 확인된 RJ 고등급 구역에 집중할 예정입니다. 시추는 2025년 8월 초에 시작될 예정입니다.
Formation Metals (OTCQB:FOMTF) a réussi à clôturer un financement de 2,33 millions de dollars via plusieurs tranches d’unités flow-through au prix unitaire allant jusqu’à 0,50 $. La société a étendu son programme de forage initial au projet aurifère N2 au Québec à 10 000 mètres, entièrement financé dans le cadre d’un programme multi-phases planifié de 20 000 mètres.
Le projet aurifère N2 détient une ressource historique d’environ 870 000 onces d’or, incluant 18 Mt à une teneur de 1,4 g/t Au (~809 000 oz) réparties sur quatre zones et 243 Kt à une teneur de 7,82 g/t Au (~61 000 oz) dans la zone RJ. Avec environ 5 millions de dollars de fonds de roulement et un budget d’exploration de 5,1 millions de dollars pour 2025-2026, Formation est bien positionnée pour achever son engagement de travaux de 5 millions de dollars afin d’acquérir 100 % du projet N2 quatre ans avant le calendrier prévu.
Le programme se concentrera sur la zone A, qui contient environ 522 900 onces d’or avec seulement 35 % de la longueur de la veine forée, ainsi que sur la zone RJ à haute teneur, où des forages historiques ont révélé des intersections allant jusqu’à 51 g/t Au. Les forages devraient commencer début août 2025.
Formation Metals (OTCQB:FOMTF) hat erfolgreich eine Finanzierung in Höhe von 2,33 Mio. USD durch mehrere Tranchen von Flow-Through-Einheiten zu einem Preis von bis zu 0,50 USD pro Einheit abgeschlossen. Das Unternehmen hat sein erstes Bohrprogramm beim N2 Gold-Projekt in Quebec auf 10.000 Meter ausgeweitet, das vollständig im Rahmen eines geplanten mehrphasigen Programms mit 20.000 Metern finanziert wird.
Das N2 Gold-Projekt beherbergt eine historische Ressource von ca. 870.000 Unzen Gold, darunter 18 Mio. Tonnen mit einem Gehalt von 1,4 g/t Au (~809.000 oz) über vier Zonen und 243.000 Tonnen mit einem Gehalt von 7,82 g/t Au (~61.000 oz) in der RJ-Zone. Mit ca. 5 Mio. USD an Betriebskapital und einem Explorationsbudget von 5,1 Mio. USD für 2025-2026 ist Formation gut positioniert, um seine Arbeitsverpflichtung von 5 Mio. USD zur Erlangung von 100 % des N2-Projekts vier Jahre vor dem Zeitplan abzuschließen.
Das Programm konzentriert sich auf die A-Zone, die etwa 522.900 Unzen Gold enthält und von der nur 35 % des Streichens gebohrt wurden, sowie auf die hochgradige RJ-Zone, in der historische Bohrungen Abschnitte mit bis zu 51 g/t Au ergaben. Die Bohrungen sollen Anfang August 2025 beginnen.
- Secured $2.33M financing and expanded working capital to ~$5M with zero debt
- Historic resource of ~870,000 ounces gold at N2 Project
- Expanded drill program to 10,000 metres, fully funded
- Will complete $5M work commitment 4 years ahead of schedule
- Strong gold intercepts in historical drilling (up to 51 g/t Au)
- Additional base metal potential with significant copper and zinc intercepts
- Historic resource is not NI 43-101 compliant and requires verification
- Only 35% of the A Zone's strike length has been drilled to date
- Potential share dilution from new unit issuance and warrants
Highlights:
Formation has planned a 20,000 metre multi-phase drill program at its flagship N2 Gold Project near Matagami, Quebec, host to a global historic resource of ~870,000 ounces comprised of 18 Mt grading 1.4 g/t Au (~809,000 oz Au) across four zones (A, East, RJ-East, and Central)2,3 and 243 Kt grading 7.82 g/t Au (~61,000 oz Au) across the RJ zone2,4.
Phase 1 has been expanded to a fully funded 10,000 metre program focusing on targets in the "A" zone, a shallow, highly continuous, low-variability historic gold deposit with ~522,900 ounces of which only ~
35% of strike has been drilled (>3.1 km open), and the "RJ" zone, host to high-grade intercepts from historical drill holes as high as 51 g/t Au over 0.8 metres2, which was expanded by Agnico Eagle Mines in 2008 in the most recent drilling at the Property. Formation anticipates commencing its drill program in early August.Formation will also focus on N2's significant base metal potential, where it recently completed a revaluation process which revealed significant copper and zinc intercepts within historic drillholes with significant gold grades (>1 g/t Au).
The Company has closed ~
$4M across two tranches, bringing its working capital to ~C$5M with zero debt. Inclusive of provincial tax credits from the Quebec government, Formation's exploration budget for 2025-2026 is set at ~$5.1M , putting it in a very strong financial position to execute its exploration programs.Formation is now funded to complete the
$5M work commitment required to earn-in to100% of the N2 Gold Project within two years, four years ahead of schedule.
VANCOUVER, BC / ACCESS Newswire / July 23, 2025 / Formation Metals Inc. ("Formation" or the "Company") (CSE:FOMO)(FSE:VF1)(OTCQB:FOMTF), a North American mineral acquisition and exploration company, is pleased to announce that it has elected to expand its maiden drill program at its N2 Gold Property ("N2" or the "Property"), located 25 km south of Matagami, Quebec, to a fully funded 10,000 metres following the successful closing of ~
The Company anticipates commencing on the program in early August, having officially filed its Annual Exploration Work Notice ("Planification Annuelle Des Travaux d'Exploration") with the responsible municipal authorities for its upcoming 2025 exploration activities on June 17, 2025. This filing must be completed 30-days in advance of the commencement of fieldwork and ensures compliance with regulatory requirements and reflects the Company's continued commitment to transparency, community engagement, and responsible mineral exploration practices. The work program will focus on advancing key targets across Formation's Quebec-based properties.
The 10,000 metres comprising Phase 1 is part of its planned 20,000 metre multi-phase drill program at N2, an advanced gold project with a global historic resource of ~870,000 ounces comprised of 18 Mt grading 1.4 g/t Au (~809,000 oz Au) across four zones (A, East, RJ-East, and Central)2,3 and 243 Kt grading 7.82 g/t Au (~61,000 oz Au) across the RJ zone2,4.
Deepak Varshney, CEO of Formation Metals, stated, "We are very grateful for the support Formation has received from new and past shareholders. With over five million in working capital, Formation is now positioned to commence on the most aggressive drill program our company has embarked on to date, with 10,000 metres fully funded for 2025. This financing secures Formation's future with the N2 Gold Deposit as we will be funded to complete the work requirements of our six-year option within the first two years, four years ahead of schedule."
Mr. Varshney continued: "We are very excited to commence our maiden drill program at N2. Based on our on-going review and planning for Phase 1, we feel comfortable in expanding our maiden drill program to a fully funded 10,000 metres.
Given the scale of the property, the compelling geological data, and the Abitibi Greenstone Belt's established history as a hotbed for gold mining, we are hopeful that the program will deliver our goal of delivering a near-surface multi-million-ounce deposit at N2.
We see the potential for a significant gold deposit at N2, and our maiden 10,000-metre drilling program will mark the beginning of Formation's pursuit of that goal. Our maiden program will focus on building on the successes of our predecessors. The drilling discoveries made by Agnico-Eagle and Cypress show the potential at N2. With gold at over
Comprising 87 claims totaling ~4,400 ha within the Abitibi sub province of Northwestern Quebec, Formation's flagship N2 Gold Project is an advanced gold project with a global historic resource of 877,000 ounces: 18.2 Mt grading 1.48 g/t Au (~810,000 oz Au) across four zones (A, East, RJ-East, and Central)2,3 and 243 Kt grading 7.82 g/t Au (~67,000 oz Au) across the RJ zone2,4. There are six primary auriferous mineralized zones in total, each open for expansion along strike and at depth. Compilation and geophysical work by Balmoral Resources Ltd. (now Wallbridge Mining) from 2010 to 2018 generated numerous targets that have not yet been investigated with diamond drilling.
The drill program is designed to focus on discovery drilling at new high-potential targets along the mineralization strikes at the "A", "RJ" and "Central" zones in the northern part of the Property in order to discover new auriferous trends and unlock new zones of gold mineralization. The program will also focus on high-priority infilling and expansion targets in these zones to significantly enhance the auriferous zones identified to-date (Figure 1).
Historical highlights from the top two priority zones include:
A Zone: With a historical resource of ~522,900 gold ounces (10.7 Mt @ 1.52 g/t Au), the "A" Zone is a shallow, highly continuous, low-variability historic gold deposit with ~15,000 metres of drilling across 55 drillholes,
84% of which intercepted gold mineralization. The best historical intercept includes up to 1.7 g/t over 35 metres. ~1.65 km of strike has been drilled, with 3.1+ km of strike to be tested as part of the 20,000 metre program.RJ Zone: With a historical resource of ~61,100 gold ounces (243 Kt @ 7.82 g/t Au), the "RJ" Zone is a high-grade target that was expanded upon in the last drill program in 2008 by Agnico-Eagle when gold was approximately ~
$800 /oz. Historically, 20,875 metres has been drilled over 82 drillholes, with best intercepts of 48 g/t over 0.5 metres and 16.5 g/t over 3.6 metres. ~900 metres of strike has been drilled, with 4.75+ km of strike to be tested as part of the 20,000 metre program.


The Company also believes that N2 has significant base metal potential, where it recently completed a revaluation process which revealed significant copper and zinc intercepts within historic drillholes known to have significant gold grades (>1 g/t Au). Assay results range from 200 to 4,750 ppm and 203 ppm to 6,700 ppm, for copper and zinc, respectively, indicating strong potential for elevated base metal (Cu-Zn) concentrations across the property, specifically at the A and RJ zones. Property wide geology at N2 features volcanic and sedimentary rocks formed in regional anticlinal and synclinal flexures. Three principal deformation structures (Figure 1), oriented along the known NW-SE to WNW-ESE structural trends typical of VMS deposits in the Matagami region, function as critical geologic controls for mineralization on the property.
For the 2025 exploration season, Formation plans to concentrate its efforts on the northern part of N2, targeting gold deposit expansion and discovery along identified zones and fault systems associated with the main deformation features (specifically WNW-ESE trend), with IP surveys and drilling planned to model mineralized zones that will hopefully contribute to an updated NI-43 101 compliant resource. Formation will also look to further review historic base metal assays from older drill core and undertake additional work in 2025 to assess the property's copper and zinc potential.
The Company is pleased to announce that it has closed tranches of its non-brokered private placements raising total gross proceeds of
Each Unit consists of one flow-through common share (each a "FT Share") of the Company, and each FT Share qualifies as a "flow-through share" as defined in section 66(15) of the Income Tax Act (Canada), and one transferable common share purchase warrant (each a "Warrant"), with each Warrant entitling the holder to purchase one additional common share (a "Warrant Share") at an exercise price of
Each CFT 4MHUnit consists of one Share (a "CFT 4MH Share") and one common share purchase warrant (a "CFT 4MH Warrant"), with each CFT 4MH Warrant exercisable to acquire one Warrant Share at an exercise price of
In addition, the Company announces that it has increased its CFT 4MH Unit Offering by an additional 2,298,850 per CFT 4MH Unit at
Each CFT Unit consists of one Share (a "LIFECFT Share") and one common share purchase warrant (a "LIFE Warrant") with each LIFE Warrant exercisable to acquire one additional Share of the Company at an exercise price of
None of the securities issued in connection with the FT Offering, the CFT 4MH Unit Offering and the LIFE Offering are subject to the Exchange Hold (as defined under CSE Policy 1 Interpretation and General Provisions which definition became effective May 22, 2025), required in certain circumstances in accordance with Policy 6 Distributions and Corporate Finance of the CSE.
The Company intends to use the net proceeds of the Offerings for fieldwork at the Company's exploration projects and, in the case of the net proceeds from the LIFE Offering, as more particularly set out in the Offering Document.
Qualified person
The technical content of this news release has been reviewed and approved by Mr. Babak Vakili Azar, P.Geo., an independent contractor and a qualified person as defined by National Instrument 43-101. Historical reports provided by the optionor were reviewed by the qualified person. The information provided has not been verified and is being treated as historic.
About Formation Metals Inc.
Formation Metals Inc. is a North American mineral acquisition and exploration company focused on the development of quality properties that are drill-ready with high-upside and expansion potential. Formation's flagship asset is the N2 Gold Project, an advanced gold project with a global historic resource of ~870,000 ounces (18 Mt grading 1.4 g/t Au (~809,000 oz Au) across four zones (A, East, RJ-East, and Central)2,3 and 243 Kt grading 7.82 g/t Au (~61,000 oz Au) across the RJ zone2,4) and six mineralized zones, each open for expansion along strike and at depth including the "A" zone, of which only ~
FORMATION METALS INC.
Deepak Varshney, CEO and Director
For more information, please call 778-899-1780, email info@formationmetalsinc.com or visit www.formationmetalsinc.com.
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
Notes and References:
Readers are cautioned that the geology of nearby properties is not necessarily indicative of the geology of the Property.
The above referenced resource estimates do not have a category, are considered historical in nature, and are based on prior data prepared by a previous property owner, and do not conform to current CIM categories.
While the Company considers the estimates to be reliable, a qualified person has not done sufficient work to classify the historical estimates as current resources in accordance with current CIM categories and the Company is not treating the historical estimates as a current resource. A 0.5 g/t Au cut-off was used in the preparation of the historical estimates with a minimum 2.5 metre mining width.
Significant data compilation, re-drilling, re-sampling and data verification may be required by a qualified person before the historical estimates can be classified as current resources. There can be no assurance that any of the historical mineral resources, in whole or in part, will ever become economically viable. In addition, mineral resources are not mineral reserves and do not have demonstrated economic viability. The Company is not aware of any more recent estimates prepared for the N2 Property.
Needham, B. (1994), 1993 Diamond Drill Report, Northway Joint Venture, Northway Property; Cypress Canada Inc.; 492 pages.
Guy K. (1991), Exploration Summary May 1, 1990 to May 1, 1991 Vezza Joint Venture Northway Property; Total Energold; 227 pages.
Forward-looking statements:
This news release includes "forward-looking statements" under applicable Canadian securities legislation, including statements respecting: the Company's plans for the Property and the expected timing and scope of the 2025 drilling program at the Property; the Company's goal of delivering a near-surface multi-million-ounce deposit the Property; the Company's anticipated timeline with respect to the Application for Autorisation de Travaux d'exploration à Impacts (ATI) to the Ministère des Ressources naturelles et des Forets (MERN); the Company's view that the Property has the potential for over three million ounces of gold; the 10,000-metre drilling program marking the beginning of the Company's pursuit of that goal; and statements respecting the Offerings and the expected use of proceeds therefrom. Such forward-looking information reflects management's current beliefs and is based on a number of estimates and/or assumptions made by and information currently available to the Company that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors that may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Readers are cautioned that such forward-looking statements are neither promises nor guarantees and are subject to known and unknown risks and uncertainties including, but not limited to, general business, economic, competitive, political and social uncertainties, uncertain and volatile equity and capital markets, lack of available capital, actual results of exploration activities, environmental risks, future prices of base and other metals, operating risks, accidents, labour issues, delays in obtaining governmental approvals and permits, and other risks in the mining industry.
The Company is presently an exploration stage company. Exploration is highly speculative in nature, involves many risks, requires substantial expenditures, and may not result in the discovery of mineral deposits that can be mined profitably. Furthermore, the Company currently has no reserves on any of its properties. As a result, there can be no assurance that such forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.
No Offer or Solicitation to Purchase Securities in the United States
This press release does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. The securities referred to herein have not been and will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), or with any securities regulatory authority of any state or other jurisdiction in the United States, and may not be offered or sold, directly or indirectly, within the United States or to, or for the account or benefit of, U.S. persons, as such term is defined in Regulation S under the Securities Act ("Regulation S"), except pursuant to an exemption from or in a transaction not subject to the registration requirements of the Securities Act.
Not for distribution to United States newswire services or for dissemination in the United States. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. This news release shall not constitute an offer to sell or the solicitation of an offer to buy in the United States or to, or for the account or benefit of, persons in the United States or U.S. Persons nor shall there by any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
SOURCE: Formation Metals
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