The Conversation (0)
Formation Metals Inc. (TSE:FCO) reports its increase in the allocation of Federal Stimulus Recovery Zone facility bonds.
The press release is quoted as saying:
The Company has engaged Thornton Farish Inc., Investment Bankers as the underwriter for the Recovery Zone Facility Bonds. Thornton Farish is widely recognized as one of the early pioneers of industrial revenue bond financing. The firm has extensive expertise and experience in all forms of tax-exempt bond financing; including recovery zone facility bonds and solid waste bonds.
Formation’s Chairman and CEO, Mari-Ann Green says:
“This [US] $31 million is in addition to the allocation of [US] $46.7 million granted by Idaho’s Department of Commerce to the Company in September”.”The Company, along with the two Industrial Development Corporations and the bond underwriter, can now concentrate its efforts on getting the Recovery Zone Facility Bonds issued prior to the December 31, 2010 expiration date for this category of bonds. This affords the Company the flexibility to apply for approximately [US] $45.4 million in Solid Waste Private Activity Bonds at a future date, as these types of bonds do not have an expiry date. Following the expected issuance of the Recovery Zone Facility Bonds, the Company will continue to work to secure credit approval for long term bank project financing as outlined in the Company’s news release dated November 30, 2010.”
Click here to access the entire news release.