Formation Metals Acquires N2 Property in Quebec, Secures 810,000 oz Historical Gold Resource

Deal News | Jan 16, 2025 | PR Newswire Cision Formations Metals Inc.

Formation Metals Inc., a North American mineral acquisition and exploration company, has announced the acquisition of the N2 property in Quebec's Casa Berardi gold trend. The transaction, subject to approval by the Canadian Securities Exchange, involves an option agreement with Wallbridge Mining Company Limited to purchase 100% interest in the N2 property. This property consists of 87 claims covering approximately 4,400 hectares in Northwestern Quebec. Key highlights of the N2 property include proximity to the Casa Berardi mine trend, significant historical gold resources, and unexplored targets potentially ripe for development. The N2 property holds historical resources estimated at 18.2 million tonnes grading 1.48 g/t Au, approximately 810,000 ounces of gold. Additionally, the RJ zone on the property commemorates a resource estimate of 243,000 tonnes grading 7.82 g/t Au, equating to around 67,000 ounces of gold. These resources were evaluated by Balmoral Resources (now part of Wallbridge Mining) between 2010 to 2018. Exploration efforts identified numerous targets that have not been surveyed with diamond drilling. Formation Metals' CEO, Deepak Varshney, emphasized the historical significance of the gold system and the strategy to confirm the existing gold resources through a comprehensive work program. As per the option agreement, Formation Metals will pay $550,000 in cash, issue 4,000,000 common shares, and undertake $5,000,000 in work expenditures to fully acquire the property. The acquisition underscores Formation Metals' ambition to expand its portfolio and capitalize on the region's rich mining potential, with specific attention to increasing shareholder value via both short- and long-term investments in this promising gold-rich terrain.

Sectors

  • Mining & Metals
  • Natural Resources

Geography

  • Canada – The N2 property is located in Quebec, Canada, and the involved companies are operating within Canadian jurisdiction.
  • Quebec – The specific focus of the mining and exploration activities is in the Northwestern region of Quebec, part of Canada's rich mining territory.

Industry

  • Mining & Metals – The article discusses the acquisition of a gold mining property by Formation Metals, highlighting exploration and historical resources.
  • Natural Resources – The acquisition involves exploration of natural gold deposits within Quebec, indicating involvement in natural resource management and exploration.

Financials

  • $550,000 – Cash payment required under the option agreement for the acquisition of the N2 property.
  • 4,000,000 shares – Number of common shares in Formation Metals to be issued as part of the purchase agreement.
  • $5,000,000 – Work expenditure commitment under the terms of the agreement to develop the N2 property.

Participants

NameRoleTypeDescription
Formation Metals Inc.AcquirerCompanyA North American mineral acquisition and exploration company focused on the development of quality critical metal properties.
Wallbridge Mining Company LimitedSellerCompanyMining company that previously owned the N2 property before forming the option agreement with Formation Metals.
Deepak VarshneyCEOPersonCEO and Director of Formation Metals Inc., overseeing the acquisition strategy.
Canadian Securities ExchangeRegulatorGovernmentThe exchange provides the platform and regulatory approval for the trading of company shares and options.