Expand Maiden Drill Program at the Advanced N2 Gold Project to Fully Funded 7,500 Metres and Announce Financing
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NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
Formation Metals Expands Maiden Drill Program at the Advanced N2 Gold Project to
Fully Funded 7,500 Metres
Highlights:
• Formation has planned a 20,000 metre multi -phase drill program at its flagship N2 Gold
Project in 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 7,500 metre program targeting expansion
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 July. The Company filed its 30-day
notice with the responsible municipal authorities for its upcoming 2025 exploration
activities on June 17, 2025.
• 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 working capital of ~C$2.6M, putting it in a very strong financial position
to execute its exploration programs.
Vancouver, British Columbia / July 6, 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 7,500 metres.
The Company anticipates commencing on the program in July, 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 Company’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.
The 7,500 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
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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.
“We are very excited to commence our maiden drill program at N2” said Deepak Varshney, Chief
Executive Officer of Formation. “ Filing the Annual Exploration Work Notice mark ed the final
regulatory step as we prepare to commence field activities upon receipt of the ATI . Based on our
on-going review and planning for Phase 1, we feel comfortable in expanding our maiden drill
program to a fully funded 7,500 metres. We anticipate receiving the ATI permit shortly, allowing
us to proceed with our exploration activities as scheduled.”
Mr. Varshney continued: “The summer is going to be a very exciting time as we embark on our
fully funded maiden 7,500 metre drill program at N2. 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 7,500-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 almost $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 quarter.”
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 z ones 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
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.
The Company has retained Strategy Exploration Advisors (“ Stratexplo”), an independent
exploration consulting firm based out of Rouyn-Noranda, Québec, as the field operations manager
for its planned 20,000 metre multi-phase drill program.
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Stratexplo crews will be responsible for conducting surface exploration at N2, including field
logistics, sample collection and dispatch, geological mapping and interpretation, exploration
targeting and advising as per National Instrument 43-101 collection and reporting guidelines.
These responsibilities are in addition to Stratexplo’s on-going work as the Company’s permitting
manager, where they recently facilitated Formation’s submission for its Application for
Autorisation de Travaux d’exploration à Impacts (ATI) to the Ministère des Ressources naturelles
et des Forets (MERN), and were responsible for the submission of its Planification Annuelle Des
Travaux d’Exploration.
The ATI submission was completed following discussions with all necessary parties and the
Company anticipates receiving its ATI permit within the coming weeks, after which it intends on
commencing its maiden drill program at N2.
Figure 1 - PDDH design for 20,000m Drill Program
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,
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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. There are two primary focuses for Formation:
• the “A” zone, a shallow, highly continuous, low -variability historic gold deposit with
numerous intermittent and consecutive auriferous intervals (84% of historical drill holes
intercepted Au up to 1.7 g/t over 35 m )2, 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.
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),
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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.
The Company is also pleased to announce a non -brokered listed issuer financing exemption
(LIFE) private placement (the “LIFE Offering”) for up to 2,200,000 charitable flow-through
units (“CFT Units”) of the Company at $0.50 per CFT Unit, pursuant to the listed issuer financing
exemption under Part 5A of National Instrument 45-106 – Prospectus Exemptions (“NI 45-106”),
for gross proceeds of up to $ 1,100,000. Each CFT Unit will be comprised of one common share
in the capital of the Company (a “LIFE CFT Share”) and one common share purchase warrant (a
“LIFE Warrant”). Each LIFE Warrant will be exercisable to acquire one additional common
share of the Company at an exercise price of $0.60 for a period of 24 months from the date of
closing. Each LIFE CFT Share will qualify as a “flow -through share” within the meaning of
subsection 66(15) of the Income Tax Act (Canada). The LIFE CFT Units will be sold on a structured
basis whereby the Co mpany will issue the LIFE CFT Shares and LIFE Warrants comprising the
LIFE CFT Units to purchasers purchasing as principals and/or to an agent for one or more disclosed
principals; the LIFE CFT Shares and LIFE Warrants comprising the LIFE CFT Units will then
immediately be sold to one or more back-end buyers. The LIFE CFT Units issued pursuant to the
LIFE Offering will not be subject to a hold period in accordance with applicable Canadian
securities laws. There is an offering document (the “ Offering Document”) relating to the LIFE
Offering that can be accessed under the Company’s profile at www.sedarplus.ca and on the
Company’s website (www.formationmetalsinc.com). Prospective investors in the LIFE Offering
should read the Offering Document before making an investment decision.
Concurrent with the LIFE Offering, the Company is completing a non-brokered private placement
(the “CFT 4MH Unit Offering” and, together with the LIFE Offering, the “Offerings”) of up to
2,298,850 units (each a “ CFT 4MH Unit ”) of the Company at $0. 435 per CFT 4MH Unit, for
gross proceeds of up to $1,000,000. Each CFT 4MH Unit will be comprised of one common share
in the capital of the Company (a “CFT 4MH Share”) and one common share purchase warrant (a
“CFT 4MH Warrant”). Each CFT 4MH Warrant will be exercisable to acquire one additional
common share of the Company at an exercise price of $0.60 for a period of 24 months from the
date of closing. Each CFT 4MH Share will qualify as a “flow -through share” within the meaning
of subsection 66(15) of the Income Tax Act (Canada). The CFT 4MH Units will be sold on a
structured basis whereby the Company will issue the CFT 4MH Shares and CFT 4MH Warrants
comprising the CFT 4MH Units to purchasers purchasing as principals and/or to an agent for one
or more disclosed principals; the CFT 4MH Shares and CFT 4MH Warrants comprising the CFT
4MH Units will then immediately be sold to one or more back -end buyers. All securities issued
in connection with the CFT 4MH Unit Offering will be subject to a statutory hold period of four
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1381-4590-7224, v. 1
months and one day following the date of issuance in accordance with applicable Canadian
securities laws.
Closing of the Offerings may take place in one or more tranches as determined by the Company
and is subject to certain conditions including, but not limited to, the receipt of all necessary
approvals, including approval of the Canadian Securities Exchange.
The Company may pay certain eligible finders a cash fee of up to 7% of the gross proceeds raised
in respect of the Offering s from subscribers introduced by such finders to the Company. The
Company may also issue to eligible finders such number of finder warrants (each, a “ Finder
Warrant”) as is equal to 7% of the number of LIFE Units or CFT 4MH Units sold under the
Offerings to subscribers introduced by such finders to the Company. The Finder Warrants, to the
extent they are issued, will entitle the holder s thereof to acquire one (1) common share of the
Company at a price of $0.60 per Share for a period of 24 months from the date of issuance.
The Company intends to use the net proceeds of the Offering s 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 (~8 09,000 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.
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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
Company is not treating the historical est imates 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 naturelle s et des Forets (MERN); the Company’ s view that the
Property has the potential for over three million ounces of gold; the 7,500-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 equit y 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.
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