The Conversation (0)
Formation Metals Inc. (TSX:FCO) announced that it will defer underground development or any related construction on its Idaho Cobalt Project, as was anticipated in the Company’s news release dated December 12, 2012. The Company will be focusing on the advancement of the business at the Sunshine Precious Metals Refinery to increase cash flow, and on a strategic review of its precious metals properties.
As quoted in the press release:
“Although cobalt prices have recently exhibited signs of recovery, the weak prices seen over the last year, coupled with enhanced adversity to risk by potential financiers in these turbulent markets has made financing costs unattractive for the further development of the ICP at this time,” stated Mari-Ann Green, CEO of Formation Metals Inc. She continued, “We have been working hard to reduce capital costs and increase recoveries at the ICP and we will be ready when the markets recover. This way we can preserve Formation’s cobalt, copper and gold resources until economic circumstances merit their extraction. In the meantime we will pursue those projects that have the best likelihoods of realizing cash flow in the shortest time possible under current market conditions. The ICP is a valuable asset and we intend to preserve it for future development once conditions improve.”
Management intends to focus its efforts on the advancement of the business at the Sunshine Precious Metals Refinery to increase cash flow, and on a strategic review of its precious metals properties. The Refinery business consists of the established precious metals refining of high content silver materials, such as doré, the copper SX-EW refinery and the retrofit and start-up of the hydrometallurgical plant to process concentrates. Silver bullion produced at the refinery is accepted as “Good Delivery” on the COMEX. These businesses operate separately from the Company’s ICP.
Click here to read the Formation Metals (TSX:FCO) press release
