St Barbara raises $73m to fast-track Simberi sulphide production
The company is targeting first gold production from sulphide mineralization within five months.
Stock in Formation Metals (TSE:FCO) plunged 13% today after a European bank decided to terminate its loan agreement with the Vancouver-based company.
The $79.5 million loan from BNP Paribas was to go towards construction of Formation’s Idaho cobalt mine.
Formation said the credit facility was terminated without the closing of the subject financing.
However, CEO Mari-Ann Green said despite the setback, Formation remains in a strong financial position with approximately $54.7 million in the bank. “We will carefully consider alternative financing options,” she said.
Formation says on its website that the mine is forecast to produce about 3.3 million pounds of cobalt annually, which would satisfy 15% of North American demand for the metal used in hybrid and electric vehicles and for critical applications in the super-alloy sector such as jet turbine engines. The deposit also contains 31.4 million pounds of copper and 37,000 ounces of gold (proven and probable reserves).
The mine is expected to cost about $142 million to build.
Image by Formation Metals Inc.
