Highlights:
- Formation has raised gross proceeds of $8,262,389.48, fully funding its planned multi-phase 20,000-meter drilling program at its flagship N2 Gold Project in Quebec, which comprises a total historical resource of ~870,000 ounces, consisting of 18 Mt grading 1.4 g/t Au (~809,000 ounces Au) across four zones (A, East, RJ-East, and Central)(2,3) and 243 Kt grading 7.82 g/t Au (~61,000 ounces Au) in the RJ Zone(2,4).
- Phase 1, spanning 10,000 meters, commenced on September 25, 2025. Phase 1 will focus on Zone “A,” 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 Zone “RJ,” where historical drill holes yielded high-grade intercepts of up to 51 g/t Au over 0.8 meters2, which was extended by Agnico Eagle Mines in 2008 during the most recent drilling on the property.
- The Company has working capital of ~CAD 12.7 million and is debt-free. Including Quebec provincial government tax credits, Formation’s 2025-2026 exploration budget amounts to ~CAD 8.1 million. The Company will close the remainder of its private placements in the coming weeks.
Vancouver, British Columbia / October 15, 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, further to its news releases dated September 30, 2025, and October 1, 2025, it has closed the first tranche of its private placement and raised proceeds through the issuance of 17,312,891 units (each, a “LIFE Unit”) at a price of $0.37 per LIFE Unit (the “LIFE Offering”) and 4,528,341 flow-through units (the “FT Units”) at a price of $0.41 per FT Unit (the “FT Offering” and, collectively with the LIFE Offering, the “Offerings”).
Deepak Varshney, CEO of Formation Metals, stated: “We are incredibly grateful for the support Formation has received from new and existing shareholders. With nearly $13 million in working capital, Formation is now funded through 2027 to complete 20,000 meters of drilling at N2.”
Mr. Varshney continued: “Building on the success of our predecessors, this 20,000-meter drilling program will be critical to our goal of developing N2 into a multi-million ounce, near-surface deposit. With gold prices over $4,200, more than five times the price it was in 2008 when Agnico last drilled the project, we believe the timing is perfect for N2 and look forward to a very busy field season.”
The LIFE Offering was conducted pursuant to the listed issuer exemption under Part 5A of National Instrument 45-106 – Prospectus Exemptions (“NI 45-106″), as amended and supplemented by Coordinated Blanket Order 45-935 – Exemptions from Certain Conditions of the Listed Issuer Financing Exemption.
Each LIFE Unit issued under the LIFE Offering consists of one common share of the Company (a “LIFE Share”) and one common share purchase warrant (a “LIFE Warrant”). Each LIFE Warrant is exercisable for a period of 36 months from the closing date of the LIFE Offering at an exercise price of $0.54 to acquire one additional common share of the Company.
The LIFE Units issued under the LIFE Offering are not subject to any hold period under applicable Canadian securities laws.
In connection with the LIFE Offering, the Company filed an offering document dated September 30, 2025, which was amended and restated on October 14, 2025, and is available on the Company’s SEDAR+ profile at www.sedarplus.ca and on the Company’s website (www.formationmetalsinc.com).
Each FT Unit issued under the FT Offering consists of one flow-through common share (an “FT Share”) of the Company, with each FT Share qualifying as a “flow-through share” within the meaning of subsection 66(15) of the Income Tax Act (Canada), and one transferable common share purchase warrant (an “FT Warrant”). Each FT Warrant entitles the holder to purchase one additional common share at an exercise price of $0.62 for a period of 24 months from the date of closing of the FT Offering.
All securities issued under the FT Offering are subject to a hold period under applicable Canadian securities laws.
The Company paid finder’s fees in connection with the Offering totaling $150,079.90 in cash and 127,573 finder’s warrants (the “Finder’s Warrants”) to arm’s length parties. The Finder’s Warrants are non-transferable and are on the same terms as the LIFE Warrants or FT Warrants, respectively.
The Company intends to use the net proceeds from the Offerings for field work on the Company’s exploration projects, with the net proceeds from the LIFE Offering being used as further described in the offering document.
Formation Metals 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 of 877,000 ounces. In total, there are six primary gold-bearing mineralization zones, each open along strike and at depth for expansion. Compilations and geophysical work conducted by Balmoral Resources Ltd. (now Wallbridge Mining) from 2010 to 2018 identified numerous targets that have not yet been tested by diamond drilling.
The drilling program will focus on discovery drilling at new prospective targets along mineralization trends in the “A,” “RJ,” and “Central” zones in the northern part of the property to discover and delineate new gold-bearing trends and new zones of gold mineralization. The program will also focus on priority infill and expansion targets within these zones to significantly expand the previously identified gold-bearing zones (Figure 1).
Historical highlights of the two highest priority zones include:
- Zone A: A shallow, highly continuous, low-variability historical gold deposit with ~522,900 ounces, identified grading 1.52 g/t Au. Historically, ~15,000 meters were drilled over a strike length of 1.65 km, with over 3.1 km of strike length remaining to be explored. 84% of historical drill holes in Zone A intersected gold-bearing intercepts of 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 intercepts 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 gold prices were at ~US$800/ounce. To date, only ~900 meters of the strike have been drilled, leaving over 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 a Qualified Person as defined by National Instrument 43-101. The historical reports provided by the optionor have been 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 ounces 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) in the RJ Zone(2,4) )and six mineralized zones, each open along strike and at depth for expansion, including Zone “A,” of which only approximately 35% of the strike has been drilled ( >3.1 km open), and Zone “RJ,” where historical high-grade intercepts of up to 51 g/t Au over 0.8 meters were 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 news release contains “forward-looking statements” within the meaning of applicable Canadian securities laws, including statements regarding: the Company’s plans for the property and the anticipated timing and scope of the drilling program on the property; the Company’s goal of developing a multi-million ounce, near-surface deposit on the property; the Company’s belief that the property has the potential for over three million ounces of gold; the Company’s planned 20,000-meter drilling program; as well as statements regarding the Offerings, their timing, and the anticipated use of proceeds therefrom. These forward-looking statements reflect management’s current beliefs and are based on a number of estimates and/or assumptions and information currently available to the Company which, 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 by such forward-looking statements. Readers are cautioned that such forward-looking statements are not 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, labour issues, delays in obtaining governmental approvals and licenses, and other risks inherent 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.
