Formation Metals Closes $2.33M at up to $0.50/Unit Increasing Exploration Budget to ~$5.1M, Expands Maiden Drill Program at the Advanced N2 Gold Project to Fully Funded 10,000 Metres
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Formation Metals Closes $2.33M at up to $0.50/Unit Increasing Exploration Budget to
~$5.1M, Expands Maiden Drill Program at the Advanced N2 Gold Project to Fully Funded
10,000 Metres
Highlights:
• Formation has planned a 20,000 metre multi -phase drill program at its flagship N2 Gold
Project near Matagami, Quebec, host to a global historic resource of ~870,000 ounces
comprised of 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) across the RJ
zone2,4.
• Phase 1 has been expanded to a fully funded 10,000 metre program focusing on targets in
the “A” zone, a shallow, highly continuous, low -variability historic gold deposit with
~522,900 ounces of which only ~35% of strike has been drilled (>3.1 km open), and the
“RJ” zone, host to high-grade intercepts from historical drill holes as high as 51 g/t Au over
0.8 metres2, which was expanded by Agnico Eagle Mines in 2008 in the most recent drilling
at the Property. Formation anticipates commencing its drill program in early August.
• Formation will also focus on N2’s significant base metal potential, where it recently
completed a revaluation process which revealed significant copper and zinc intercepts
within historic drillholes with significant gold grades (>1 g/t Au).
• The Company has closed ~$4M across two tranches, bringing its working capital to ~C$5M
with zero debt . Inclusive of provincial tax credits from the Quebec government,
Formation’s exploration budget for 2025-2026 is set at ~$5.1M, putting it in a very strong
financial position to execute its exploration programs.
• Formation is now funded to complete the $5M work commitment required to earn -in to
100% of the N2 Gold Project within two years, four years ahead of schedule.
Vancouver, British Columbia / Ju ly 23, 2025 – Formation Metals Inc. (“ Formation” or the
“Company”) (CSE:FOMO) (FSE:VF1) (OTCPK:FOMTF), a North American mineral
acquisition and exploration company, is pleased to announce that it has elected to expand its
maiden drill program at its N2 Gold Property (“ N2” or the “Property”), located 25 km south of
Matagami, Quebec, to a fully funded 10,000 metres following the successful closing of ~$4M.
The Company anticipates commencing on the program in early August, having officially filed its
Annual Exploration Work Notice (“Planification Annuelle Des Travaux d’Exploration”) with
the responsible municipal authorities for its upcoming 2025 exploration activities on June 17,
2025. This filing must be completed 30- days in advance of the commencement of fieldwork and
ensures compliance with regulatory requirements and reflects the C ompany’s continued
commitment to transparency, community engagement, and responsible mineral exploration
practices. The work program will focus on advancing key targets across Formation’s Quebec-based
properties.
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The 10,000 metres comprising Phase 1 is part of its planned 20,000 metre multi -phase drill
program at N2, an advanced gold project with a global historic resource of ~870,000 ounces
comprised of 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) across the RJ zone2,4.
Deepak Varshney, CEO of Formation Metals, stated, “We are very grateful for the support
Formation has received from new and past shareholders. With over five million in working capital,
Formation is now positioned to commence on the most aggressive drill program our company has
embarked on to date, with 10,000 metres fully funded for 2025. This financing secures Formation’s
future with the N2 Gold Deposit as we will be funded to complete the work requirements of our
six-year option within the first two years, four years ahead of schedule.”
Mr. Varshney continued: “We are very excited to commence our maiden drill program at N2. Based
on our on-going review and planning for Phase 1, we feel comfortable in expanding our maiden
drill program to a fully funded 10,000 metres.
Given the scale of the property, the compelling geological data, and the Abitibi Greenstone Belt's
established history as a hotbed for gold mining, we are hopeful that the program will deliver our
goal of delivering a near-surface multi-million-ounce deposit at N2.
We see the potential for a significant gold deposit at N2, and our maiden 10,000- metre drilling
program will mark the beginning of Formation's pursuit of that goal. Our maiden program will
focus on building on the successes of our predecessors. The drilling discoveries made by Agnico-
Eagle and Cypress show the potential at N2. With gold at over $3,400, over 4 times the price in
2008 when Agnico last drilled the project, we believe that the timing is perfect for N2 and look
forward to a very busy upcoming field season.”
Comprising 87 claims totaling ~4,400 ha within the Abitibi sub province of Northwestern Quebec,
Formation’s flagship N2 Gold Project is an advanced gold project with a global historic resource
of 877,000 ounces: 18.2 Mt grading 1.48 g/t Au (~810,000 oz Au) across four zones (A, East,
RJ-East, and Central)2,3 and 243 Kt grading 7.82 g/t Au (~67,000 oz Au) across the RJ zone2,4.
There are six primary auriferous mineralized zones in total, each open for expansion along strike
and at depth. Compilation and geophysical work by Balmoral Resources Ltd. (now Wallbridge
Mining) from 2010 to 2018 generated numerous targets that have not yet been investigated with
diamond drilling.
The drill program is designed to focus on discovery drilling at new high-potential targets along the
mineralization strikes at the “A”, “RJ” and “Central” zones in the northern part of the Property in
order to discover new auriferous trends and unlock new zones of gold mineralization. The program
will also focus on high -priority infilling and expansion targets in these zone s to significantly
enhance the auriferous zones identified to-date (Figure 1).
Historical highlights from the top two priority zones include:
• A Zone: With a historical resource of ~522,900 gold ounces (10.7 Mt @ 1.52 g/t Au), the
“A” Zone is a shallow, highly continuous, low -variability historic gold deposit with
~15,000 metres of drilling across 55 drillholes, 84% of which intercepted gold
mineralization. The best historical intercept includes up to 1.7 g/t over 35 metres. ~1.65
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km of strike has been drilled, with 3.1+ km of strike to be tested as part of the 20,000 metre
program.
• RJ Zone: With a historical resource of ~ 61,100 gold ounces (243 Kt @ 7.82 g/ t Au), the
“RJ” Zone is a high-grade target that was expanded upon in the last drill program in 2008
by Agnico-Eagle when gold was approximately ~$800/oz. Historically, 20,875 metres has
been drilled over 82 drillholes, with best intercepts of 48 g/t over 0.5 m etres and 16.5 g/t
over 3.6 metres. ~900 metres of strike has been drilled, with 4.75+ km of strike to be tested
as part of the 20,000 metre program.
Figure 1 - PDDH design for 20,000 metre Drill Program
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Figure 2 - Property overview summarizing historical work completed at each of the six mineralized zones and their respective
historical resource.
The Company also believes that N2 has significant base metal potential, where it recently
completed a revaluation process which revealed significant copper and zinc intercepts within
historic drillholes known to have significant gold grades (>1 g/t Au). Assay results range from 200
to 4,750 ppm and 203 ppm to 6,700 ppm, for copper and zinc, respectively, indicating strong
potential for elevated base metal (Cu-Zn) concentrations across the property, specifically at the A
and RJ zones. Property wide geology a t N2 features volcanic and sedimentary rocks formed in
regional anticlinal and synclinal flexures. Three principal deformation structures (Figure 1),
oriented along the known NW-SE to WNW-ESE structural trends typical of VMS deposits in the
Matagami region, function as critical geologic controls for mineralization on the property.
For the 2025 exploration season, Formation plans to concentrate its efforts on the northern part of
N2, targeting gold deposit expansion and discovery along identified zones and fault systems
associated with the main deformation features (specifically WNW-ESE trend), with IP surveys and
drilling planned to model mineralized zones that will hopefully contribute to an updated NI-43 101
compliant resource. Formation will also look to further review historic base metal assays from
older drill core and undertake additional work in 2025 to assess the property’s copper and zinc
potential.
N2 Gold Project – Target Summary
Five key mineralized zones, offering significant explora�on poten�al
• A Zone: 55 drillholes, 14,693 m, 84% intercepted Au up to
1.7 g/t over 35 m with a metal factor of 93; 1.65 km strike
drilled, 3.1 km+ strike open
• RJ Zone: 82 drillholes, 20,875 m, 76% intercepted Au up to
48 g/t over 0.5 m / 16.5 g/t over 3.6 m; metal factor 60;
900 m strike drilled, 4.75 km+ strike open
• Central Zone: 29 drillholes, 6,090 m, 62% intercepted Au up to
1.35 g/t over 18.5 m; 1.1 km strike drilled, 5 km+ strike open
• RJE Zone: 17 drillholes, 3,816 m, 76% intercepted Au up to
51.26 g/t over 0.8 m; 300 m strike drilled, 1.7 km+ strike open
• East Zone: 14 drillholes, 2,474 m, 93% intercepted Au up to
11.3 g/t over 0.6 m; 300 m strike drilled, 1.95 km+ strike open
OuncesAu GradeTon nag eZone
522,9001.5210.7 MtA
102,6251.142.8 MtCentral
190,2042.042.9 MTRJE
30,3831.89500 KtEast
61,0957.82243 KtRJ
Notes: 1) 0.5 g/t c utoff; 2) 2.5 metre mining width, 3 ) historical resource es�mate
CSE: FOMO | OTCPK: FOMTF | FSE: VF1
Suite #400 – 1681 Chestnut Street, Vancouver, BC V6J 4M6
The Company is pleased to announce that it has closed tranches of its non- brokered private
placements raising total gross proceeds of $2,334,400.03 through the issuance of (i) 1,434,000
flow-through units (the “ Units”) at $0.35 per Unit (the “ FT Offering”), (ii) 1,724,138 charity
flow-through units (the “CFT 4MH Unit”) at $0.435 per CFT 4MH Unit (the “CFT 4MH Unit
Offering”), and (iii) 2,185,000 charity flow-through units (the “CFT Units”) at $0.50 per Charity
FT Unit (the “LIFE Offering”).
Each Unit consists of one flow-through common share (each a “FT Share”) of the Company, and
each FT Share qualifies as a “flow-through share” as defined in section 66(15) of the Income Tax
Act (Canada), and one transferable common share purchase warrant (each a “Warrant ”), with
each Warrant entitling the holder to purchase one additional common share (a “Warrant Share”)
at an exercise price of $0.60 per Warrant Share for a period of two (2) years from the date of closing
of the Private Placement (the “Expiry Date”). In connection with the FT Offering, the Company
paid finder’s fees of $35,133 cash and 29,680 non-transferable finder’s warrants (each a “Finder’s
Warrant”) to arm’s length parties, in accordance with applicable securities laws and the policies
of the Canadian Securities Exchange (“CSE”). The Finder’s Warrants are exercisable at $0.60 per
Share until the Expiry Date. The Company closed the first tranche of the FT Offering of Units at
$0.35 on June 13, 2025 issuing 4,701,286 Units for proceeds of $1,645,450.10. The FT Offering
was oversubscribed by 421,001 Units. The securities issued in connection with the Unit Offering
are subject to a statutory hold period of four months following the date of issuance in accordance
with applicable Canadian securities laws.
Each CFT 4MH Unit consists of one Share (a “CFT 4MH Share ”) and one common share
purchase warrant (a “CFT 4MH Warrant”), with each CFT 4MH Warrant exercisable to acquire
one Warrant Share at an exercise price of $0.60 until the Expiry Date. Each CFT 4MH Share
qualifies as a “flow-through share” within the meaning of subsection 66(15) of the Income Tax Act
(Canada). In connection with the CFT 4MH Unit Offering, the Company paid finder’s fees of
$17,723.97 cash and 56,700 non- transferable Finder’s Warrants to arm’s length parties, in
accordance with applicable securities laws and the policies of the CSE. The Finder’s Warrants are
exercisable at $0.60 per Share until the Expiry Date. The securities issued in connection with the
CFT 4MH FT Offering are subject to a statutory hold period of four months following the date of
issuance in accordance with applicable Canadian securities laws.
In addition, the Company announces that it has increased its CFT 4MH Unit Offering by an
additional 2,298,850 per CFT 4MH Unit at $0.435 per CFT 4MH Unit for additional gross
proceeds of up to $1,000,000 to be raised pursuant to a second tranche. The Company expects the
second tranche of the CFT 4MH Unit Offering to close on or about July 28, 2025.
Each CFT Unit consists of one Share (a “LIFE CFT Share”) and one common share purchase
warrant (a “LIFE Warrant”) with each LIFE Warrant exercisable to acquire one additional Share
of the Company at an exercise price of $0.60 until the Expiry Date. Each LIFE CFT Share qualifies
as a “flow-through share” within the meaning of subsection 66(15) of the Income Tax Act (Canada).
The LIFE Offering was conducted under the listed issuer financing exemption as per Part 5A of
National Instrument 45-106 – Prospectus Exemptions to qualified investors in Canada. As a result,
the securities issued in the LIFE Offering are not subject to a hold period under the prevailing
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Canadian securities laws. In connection with the LIFE Offering, the Company filed an Offering
Document (the “Offering Document”) dated July 6, 2025, as amended on July 10, 2025, which is
available on the Company’s SEDAR+ profile at www.sedarplus.ca and on
www.formationmetalsinc.com.
None of the securities issued in connection with the FT Offering, the CFT 4MH Unit Offering and
the LIFE Offering are subject to the Exchange Hold (as defined under CSE Policy 1 Interpretation
and General Provisions which definition became effective May 22, 2025), required in certain
circumstances in accordance with Policy 6 Distributions and Corporate Finance of the CSE.
The Company intends to use the net proceeds of the Offerings for fieldwork at the Company’s
exploration projects and, in the case of the net proceeds from the LIFE Offering, as more
particularly set out in the Offering Document.
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. Historical reports provided by the optionor were reviewed by the qualified person. The
information provided has not been verified and is being treated as historic.
About Formation Metals Inc.
Formation Metals Inc. is a North American mineral acquisition and exploration company focused
on the development of quality properties that are drill -ready with high- upside and expansion
potential. Formation’s flagship asset is the N2 Gold Project, an advanced gold project with a global
historic 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) across
the RJ zone 2,4) and six mineralized z ones, each open for expansion along strike and at depth
including the “A” zone, of which only ~35% of strike has been drilled (>3.1 km open), and the
“RJ” zone, host to historical high-grade intercepts as high as 51 g/t Au over 0.8 metres.
FORMATION METALS INC.
Deepak Varshney, CEO and Director
For more information, please call 778 -899-1780, email [email protected] 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 References:
1. Readers are cautioned that the geology of nearby properties is not necessarily indicative of the geology of
the Property.
2. The above referenced resource estimates do not have a category, are considered historical in nature, and are
based on prior data prepared by a previous property owner, and do not conform to current CIM categories.
While the Company considers the estimates to be reliable, a qualified person has not done sufficient work to
classify the historical estimates as current resources in accordance with current CIM categories and the
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Company is not treating the historical estimates as a current resource. A 0.5 g/t Au cut -off was used in the
preparation of the historical estimates with a minimum 2.5 metre mining width.
Significant data compilation, re -drilling, re-sampling and data verification may be required by a qualified
person before the historical estimates can be classified as current resources. There can be no assurance that
any of the historical mineral resources, in whole or in part, will ever become 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 prepared for the N2 Property.
3. Needham, B. (1994), 1993 Diamond Drill Report, Northway Joint Venture, Northway Property; Cypress
Canada Inc.; 492 pages.
4. 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 includes "forward -looking statements" under applicable Canadian securities
legislation, including statements respecting: the Company’ s plans for the Property and the
expected timing and scope of the 2025 drilling program at the Property; the Company’ s goal of
delivering a near -surface multi-million-ounce deposit the Property; the Company’ s anticipated
timeline with respect to the Application for Autorisation de Travaux d’exploration à Impacts (ATI)
to the Ministère des Ressources naturelles et des Forets (MERN); the Company’ s view that the
Property has the potential for over three million ounces of gold; the 10,000-metre drilling program
marking the beginning of the Company’ s pursuit of that goal ; and statements respecting the
Offerings and the expected use of proceeds therefrom. Such forward-looking information reflects
management's current beliefs and is based on a number of estimates and/or assumptions made by
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 by 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,
labour issues, delays in obtaining governmental approvals and permits, and other risks in the
mining industry.
The Company is presently an exploration stage company. Exploration is highly speculative in
nature, involves many risks, requires substantial expenditures, and may not result in the discovery
of mineral deposits that can be mined profitably. Furthermore, t he Company currently has no
reserves on any of its properties. As a result, 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 or form a part of any offer or solicitation to purchase or subscribe
for securities in the United States. 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
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authority of any state or other jurisdiction in the United States, and may not be offered or sold, directly or
indirectly, within 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 Sec urities Act (“Regulation S”), except pursuant to an exemption from
or in a transaction not subject to the registration requirements of the Securities Act.
Not for distribution to United States newswire services or for dissemination in the United States. This news
release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the
United States. The securities have n ot 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 news release shall
not constitute an offer to sell or the solicitation of an offer to buy in the United States or to, or for the
account or benefit of, persons in the United States or U.S. Persons nor shall there by any sale of the
securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.