Formation Metals (TSX:FCO) has issued a secured convertible note worth US$5,000,000 to a strategic private investor.
As quoted in the press release:
The Company is carefully considering various sources for additional funding. One potential source is a further investment from the Investor by way of joint venture or other arrangement. At present, discussions between the Company and the Investor as to such an investment are on-going and no assurance can be given that a definitive agreement with respect to such an investment will be concluded. Further, any such investment would be subject to the Company obtaining acceptable additional debt or equity financing to fully fund the Idaho Cobalt Project.
Formation Metals CEO Mari-Ann Green said:
We are encouraged by this development. This is a small, but important, part of the overall financing that the Company is pursuing to raise the balance of the capital necessary to complete construction of the Idaho Cobalt Project. With this funding the Company can continue the work this fall necessary to prepare the project for underground development. Once additional funding for the project is secured our plan is to resume full construction.