Formation Metals (CSE: FOMO; FSE: VF1; OTCQB: FOMTF) is advancing work on its N2 Gold Project in the Abitibi region of Québec. The company reports an increase in the previously announced LIFE financing, including an accompanying flow-through placement, to up to CAD 8.6 million. In parallel, on September 25, 2025, Formation Metals began the first phase of a multi-phase drilling program totaling 20,000 meters – focusing on the “A” and “RJ” target zones. The project hosts a historical global resource of approximately 877,000 ounces of gold, which remains open along strike and at depth.
Financing: LIFE Units and Flow-Through Placement Overview
As part of the increased offering, Formation Metals plans a non-brokered LIFE placement of up to 17,847,838 LIFE units at CAD 0.37 per unit for gross proceeds of up to CAD 6.6 million. Each LIFE unit consists of one common share and one warrant (36-month term, exercise price CAD 0.54). The LIFE securities are not subject to a holding period under Canadian law. In addition, a flow-through placement of up to 4,878,049 FT units at CAD 0.41 per unit is intended to raise up to CAD 2.0 million. Each FT unit includes one flow-through share and one transferable warrant (24-month term, exercise price CAD 0.62); these securities, however, are subject to a holding period of four months and one day.
N2 Gold Project: Drilling Targets, Historical Data, and Additional Metals
Formation Metals plans a total of 20,000 m of drilling, of which 10,000 m in Phase 1 (fully funded). Target areas are the shallow-dipping, highly continuous “A” zone and the high-grade “RJ” zone in the northern part of the project. Historical data reports for the A zone approximately 522,900 ounces at ~1.52 g/t gold; approximately 1.65 km of strike has been drilled to date, while >3.1 km is open. In the RJ zone, there are historical, high-grade sections of up to 51 g/t gold over 0.8 meters and 16.5 g/t gold over 3.5 meters; ~900 meters of strike length have been tested to date, with more than 4.75 kilometers of remaining potential! The total historical resource comprises approximately 877,000 ounces at ~1.4 g/t gold (18 Mt) across the A, East, RJ-East, and Central zones, and ~61,000 ounces at 7.82 g/t gold (243 kt) in the RJ zone. (These figures are historical and are for classification purposes only; an updated NI-43-101 compliant resource estimate is still pending.)
In addition to gold, Formation Metals points to copper and zinc signatures in historical drillings – especially in the A and RJ zones. Reported samples range from 200 to 4,750 ppm copper and 203 to 6,700 ppm zinc. The geological architecture (volcanic and sedimentary sequences in anticlinal/synclinal structures) and NW-SE to WNW-ESE trending deformation zones correspond to regional trends, as known from VMS systems in the Matagami area. The 2025 season envisions IP surveys and drilling to model mineralized trends and prepare a later NI-43-101 compliant calculation.
Use of Funds and Timeline 2025/26: Formation Metals Strengthens Ability to Act
Prior to the financing, Formation Metals had approximately CAD 4.7 million in working capital with zero debt. Including expected tax credits from the province of Québec, the exploration budget for 2025 – 2026 was approximately CAD 5.7 million. With full placement, the company estimates that working capital would increase to approximately CAD 13 million; the exploration budget could increase to ~CAD 8.5 million+. The net proceeds from the LIFE and FT placement are primarily intended for fieldwork on the projects, with a focus on N2.
For the operational process, this means: Phase 1 (10,000 m) has been running since the end of September 2025, focusing on new target corridors and infill as well as step-out drilling to expand existing zones. The subsequent phases of the program are intended to seamlessly connect in order to test additional gold-bearing trends along the identified structures. In parallel, Formation Metals is examining further historical core archives for copper and zinc contents in order to systematically evaluate the polymetallic potential.
With the increased financing, Formation Metals is laying the financial groundwork for a gradually scalable drilling program on the N2 Gold Project. Decisive for further development, at least in the short term, remain the drilling results from zones A and RJ, possible extensions in the remaining six mineralized zones, and the geophysical refinement of the structures. We are excited about the first drilling results!
