VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan 16, 2014) - Formation Metals Inc. (FCO.TO) ("Formation") today announced that the Board of Directors of Formation (the "Board") has reached an agreement, effective January 15, 2014, with Mari-Ann Green, Scott Bending and William G. (Bill) Scales whereby these executives will relinquish their positions as CEO, President, and Executive Vice President, respectively and resign from the Board of Directors.
Management, faced with the collapse of the resource sector in the market, low cobalt prices and low precious metal prices has been restructuring the Company over the past 12 months. The Company has cut costs, downsized, sold non-core assets and eliminated the positions of over 40 personnel. These latest resignations are continuing the efforts of the Company to protect its strong cash position, preserve assets and remain debt free.
The Board acknowledges that this was an extremely difficult decision to make. These individuals have made momentous contributions to the development of Formation since founding the Company more than 25 years ago. Ms. Green has distinguished herself as a talented leader with her integrity, commitment and her ability to inspire. We wish her and her colleagues Scott Bending and Bill Scales well as they transition into a new chapter in their careers.
Mr. Paul Farquharson, previously CFO, has been appointed Interim President and CEO. Mr. Marc Tran, CPA, CGA, B.Comm & B.A., is appointed as CFO. Ms. Green and Messrs. Bending and Scales have agreed to provide consulting services to assist the Company during this transitional phase.
Formation is a well-established mineral exploration and development company who owns 100% of a fully permitted primary cobalt deposit located in Idaho which has been prepared for the commencement of underground development, pending additional mine financing. Formation has additional interests in base, precious metal and uranium projects in Canada, the United States and Mexico. Formation is dedicated to the principles of environmentally sound mining and refining practices, and believes that environmental stewardship and mining can co-exist. The Company trades on the Toronto Stock Exchange under the symbol FCO.
This news release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Generally, forward-looking statements can be identified by the use of forward- looking terminology. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws. Further information on the Company is available at www.sedar.com.
The statements contained in this news release in regard to Formation Metals Inc. that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including Formation Metals Inc.'s beliefs, expectations, hopes or intentions regarding the future. All forward-looking statements are made as of the date hereof and are based on information available to the parties as of such date. It is important to note that actual outcome and the actual results could differ from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as technological, legislative, corporate, commodity price and marketplace changes.