Formation Metals to Pay $34.1 Million in Recovery Zone Facility Bonds

Formation Metals Inc.(TSX:FCO) announced their latest financial updates. The Company will repay $34.1 million of $77.7 million in tax exempt recovery bonds.

As quoted in the press release:

In the process of arranging project financing, Formation has discovered that some potential lenders prefer funded debt to L/C obligations. Furthermore, some capital providers may not fit within the L/C structure. By repaying the US$34.1 million of Bonds, the Company has expanded the scope of potential participants and funding sources in the ICP project financing by reducing the amount of funding that has to fit within the Bond L/C structure.

Formation Metals, Director & CEO, Mari-Ann Green, said:

This additional flexibility optimises current project financing and increases options to refinance the project in the future, together with preserving a low-interest long-term debt component for the development of the ICP.

Click here to read the Formation Metals Inc. (TSX:FCO) press release