Formation Metals Completes US$12 Million Sale of Refinery

Formation Metals Inc. (TSX:FCO) has completed the sale of all of the shares of its indirect wholly-owned subsidiary Formation Metals, U.S., whose primary asset is the Sunshine Precious Metals Refinery, to Silver Opportunity Partners LLC, a wholly owned subsidiary of Sunshine Silver Mines, for US$12 million cash.

AS quoted in the press release:

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).

Formation Metals Inc. CEO Mari-Ann Green said:

The Company is now debt free and these additional funds will assist the Company’s efforts to review strategic opportunities. 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.

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