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Highlights:
- Formation has planned a multi-phased drill program totaling 20,000 meters at its flagship N2 Gold Project in Quebec, which hosts a global historical resource of ~870,000 ounces, consisting of 18 Mt grading 1.4 g/t Au (~809,000 oz Au) across four zones (A, East, RJ-East and Central)2,3and 243 Kt grading 7.82 g/t Au (~61,000 oz Au) at the RJ Zone (2,4) .
- Phase 1, consisting of a fully funded 10,000-meter drill program, commenced on September 25, 2025. Phase 1 will focus on the ‘A’ Zone, a shallow, highly continuous, low-variability historical gold deposit with ~522,900 ounces, of which only ~35% of the strike length has been drilled (>3.1 km open), as well as the ‘RJ’ Zone, where historical drill holes intersected high-grade sections of up to 51 g/t Au over 0.8 meters2 , which was expanded in 2008 by Agnico Eagle Mines during the most recent drilling on the property.
- The Company has a working capital of ~CAD$5.0M and was debt-free prior to the financing, leaving it in a very strong financial position to execute its exploration programs. Including tax credits from the Quebec provincial government, Formation’s 2025-2026 exploration budget totals ~CAD$5.7M. Upon full subscription, the financings would increase Formation’s working capital to ~CAD$10.5M.
Vancouver, British Columbia / October 1, 2025 – Formation Metals Inc. (“Formation” or the “Company”) (CSE:FOMO) (FSE:VF1) (OTCQB:FOMTF), a North American mineral acquisition and exploration company, is pleased to announce that its previously announced offering of up to 10,810,810 units (each, a “LIFE Unit”) of the Company at a price of $0.37 per LIFE Unit for gross proceeds of up to $4,000,000 and 4,878,049 flow-through units of the Company (“FT-Units”) at a price of $0.41 per FT Unit for gross proceeds of up to $2,000,000 (the “ “FT-Private Placement” and, together with the LIFE Offering, the “Offerings”) has been fully allocated. Further details of the Offering can be found in the Company’s press release dated September 30, 2025, which is available under the Company’s profile on SEDAR+.
Deepak Varshney, CEO of the Company, commented: “We are very pleased with the strong response to our financing, which has been fully allocated. We believe the support from new prospective investors is a strong validation of our projects and strategy. We look forward to closing in the coming week and deploying this capital to further advance our exploration and development plans.”
The closing of the Offering remains subject to a number of customary closing conditions, including the approval of the Canadian Securities Exchange and the execution of subscription agreements.
Project Summary
Formation’s flagship N2 Gold Project comprises 87 claims totaling ~4,400 ha in the Abitibi Subprovince of northwestern Quebec and is an advanced gold project with a global historical resource e of 877,000 ounces. In total, there are six primary gold-bearing mineralization zones, all of which are expandable along strike and at depth. Compilations and geophysical work conducted by Balmoral Resources Ltd. (now Wallbridge Mining) from 2010 to 2018 identified numerous targets that have yet to be tested with diamond drilling.
The drill program will focus on discovery drilling at new prospective targets along mineralization trends in the “A”, “RJ” and “Central” zones in the northern portion of the property to discover new gold-bearing trends and delineate new zones of gold mineralization. The program will also focus on priority infill and expansion targets within these zones to significantly expand the gold-bearing zones identified to date (Figure 1).
Historical highlights from the two highest priority zones include:
Zone A: A shallow, very continuous, low-variability historical gold deposit with ~522,900 ounces identified grading 1.52 g/tAu . Historically, approximately 15,000 meters have been drilled over 1.65 km of strike length, with over 3.1 km of strike length remaining to be explored. 84% of historical drill holes intersected gold-bearing sections with up to 1.7 g/t over
35 m.- RJ Zone: A high-grade historical gold deposit with ~61,100 ounces grading 7.82 g/t Au, with high-grade sections from historical drill holes of up to 51 g/t Au over 0.8 meters and 16.5 g/t Au over 3.5 meters2. This zone was the target of the last drilling on the property by Agnico-Eagle Mines in 2008 when the gold price was at ~US$800/oz. To date, only ~900 meters of the strike has been drilled, leaving 4.75+ kilometers of strike to be explored.
Figure 1 – PDDH design for the entire 20,000-meter drill program.
Figure “2” – Property overview with a summary of previous work in the six mineralized zones and respective historical resources.
The Company also believes that N2 has significant base metal potential, where it recently completed a re-evaluation process that uncovered significant copper and zinc sections within historical drill holes known to host significant gold grades (1 g/t Au). Assay results range from 200 to 4,750 ppm for copper and from 203 ppm to 6,700 ppm for zinc, indicating strong potential for increased base metal (Cu-Zn) concentrations across the property, particularly in the A and RJ zones. The geological nature of the entire N2 property is characterized by volcanic and sedimentary rocks formed in regional anticline and syncline bends. Three major deformation structures (Figure 1), aligned along the known NW-SE to WNW-ESE structural trends typical of VMS deposits in the Matagami region, act as critical geological controls for mineralization on the property.
For the 2025 exploration season, Formation plans to focus its efforts on the northern portion of N2, with the goal of expanding and discovering gold deposits along identified zones and fault systems associated with the major deformation features (particularly the WNW-ESE trend). IP surveys and drilling are planned to model mineralized zones, which will hopefully contribute to an updated NI-43-101 compliant resource. Formation will also further review the historical base metal assays from older drill core and conduct additional work in 2025 to assess the copper and zinc potential of the property.
Qualified Person
The technical content of this news release has been reviewed and approved by Mr. Babak Vakili Azar, P.Geo., an independent contractor and Qualified Person pursuant to National Instrument 43-101. The historical reports submitted by the optionor were reviewed by the Qualified Person. The information provided has not been verified and is treated as historical.
About Formation Metals Inc.
Formation Metals Inc. is a North American mineral acquisition and exploration company focused on developing high-quality, drill-ready properties with high upside and expansion potential. Formation’s flagship project is the N2 Gold Project, an advanced gold project with a global historical resource of ~870,000 ounces ( 18 Mt grading 1.4 g/t Au (~809,000 oz Au) across four zones (A, East, RJ-East and Central)(2,3)and 243 Kt grading 7.82 g/t Au (~61,000 oz Au) at the RJ Zone(2,4) )and six mineralized zones, all of which are expandable along strike and at depth, including the “A” Zone, of which only approximately 35% of the strike has been drilled (3.1 km open), and the “RJ” Zone, where historical high-grade sections of up to 51 g/t Au over 0.8 meters have been found.
FORMATION METALS INC.
Deepak Varshney, CEO and Director
For further information please contact 778-899-1780, email at dvarshney@formationmetalsinc.com or visit www.formationmetalsinc.com.
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
Notes and Disclaimers:
- Readers are cautioned that the geology of adjacent properties is not necessarily indicative of the geology of the property.
- The resource estimates referenced above do not have a category, are considered historical, and are based on prior data prepared by a previous property owner and do not conform to current CIM categories.
While the Company deems the estimates to be reliable, a qualified person has not done sufficient work to classify the historical estimates as current resources under current CIM categories, and the Company is not treating the historical estimates as current resources. A cut-off grade of 0.5 g/t Au with a minimum mining width of 2.5 meters was used in the preparation of the historical estimates.
Extensive data compilation, re-drilling, re-sampling and data verification by a qualified person may be required before the historical estimates can be classified as current resources. There can be no assurance that the historical mineral resources, in whole or in part, will ever be economically viable. In addition, mineral resources are not mineral reserves and do not have demonstrated economic viability. The Company is not aware of any more recent estimates for the N2 property.
- Needham, B. (1994), 1993 Diamond Drill Report, Northway Joint Venture, Northway Property; Cypress Canada Inc.; 492 pages.
- Guy K. (1991), Exploration Summary May 1, 1990 to May 1, 1991, Vezza Joint Venture, Northway Property; Total Energold; 227 pages.
Forward-Looking Statements:
This press release contains “forward-looking statements” within the meaning of applicable Canadian securities legislation, including statements regarding: the Company’s plans for the property and the anticipated timing and scope of the 2025 drill program on the property; the Company’s goal of delineating a multi-million ounce near-surface deposit on the property; the Company’s anticipated timing of the “ ” with respect to the application for “Autorisation de Travaux d’exploration à Impacts” (ATI) with the Ministère des Ressources naturelles et des Forêts (MERN); the Company’s view that the property has the potential to host over three million ounces of gold; the 7,500 meter drill program with which the Company is commencing to pursue this goal; and statements regarding the Offerings, their timing and the anticipated use of proceeds therefrom. These forward-looking information reflects management’s current beliefs and is based on a number of estimates and/or assumptions and information currently available to the Company that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors that may cause the actual results and future events to differ materially from those expressed or implied in such forward-looking statements. Readers are cautioned that such forward-looking statements are neither promises nor guarantees, and are subject to known and unknown risks and uncertainties including, but not limited to, general business, economic, competitive, political and social uncertainties, uncertain and volatile equity and capital markets, lack of available capital, actual results of exploration activities, environmental risks, future prices of base and other metals, operating risks, accidents, labor issues, delays in obtaining governmental approvals and permits, and other risks in the mining industry.
The Company is currently in the exploration stage. Exploration is inherently highly speculative, is subject to many risks, involves significant expenditures and may not result in the discovery of mineral deposits that can be mined profitably. In addition, the Company currently has no reserves on any of its properties. Accordingly, there can be no assurance that such forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.
No Offer or Solicitation to Purchase Securities in the United States
This press release does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities in the United States nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities referred to herein have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), or with any securities regulatory authority of any state or other jurisdiction of the United States, and may not be offered or sold, directly or indirectly, in the United States or to, or for the account or benefit of, U.S. persons, as such term is defined in Regulation S under the Securities Act (“Regulation S”), unless registered under the Securities Act or pursuant to an exemption from such registration requirements.
Not for distribution to U.S. news wire services or for dissemination in the United States. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. This press release does not constitute an offer to sell or a solicitation of an offer to buy in the United States, or to persons in the United States, or U.S. Persons or for the account or benefit of persons in the United States or U.S. Persons, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
