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Formation Metals Inc. (TSX:FCO) announced that it has redeemed the bond debt of US$43.6 million. The debt was made available through the Federal Stimulus Package Recovery Zone Facility Bonds to complete Phase I and Phase II construction of the Company’s 100% owned Idaho Cobalt Project. The debt was redeemed using the Company’s cash which had been restricted as collateral for the bonds.
As quoted in the press release:
The redemption of the bonds together with the Company’s previously announced cost cutting measures are expected, over the course of the next twelve months, to result in reductions in overhead of approximately $2.0 million.
Formation Metals CEO Mari-Ann Green said:
This relieves the Company of all of its long term debt and interest obligations associated with the bonds, and also gives the company access to US$9.5 million which had been restricted as excess collateral for the RZFB. These funds can now be added to the Company’s existing working capital and used to move the Company’s other business forward.
Click here to read the Formation Metals Inc. (TSX:FCO) press release
Click here to see the Formation Metals Inc. (TSX:FCO) profile.
