News

February 21, 2008

Construction Set to Begin at Formation Capital’s Cobalt Mine In Idaho

By Christian Gradley

Confucius taught: plan ahead or one will find trouble on the doorstep. He would have been proud of Mari-Ann Green, chairman and chief executive of Formation Capital. For Formation July will mark the end of five years’ worth of meticulous planning - planning that has so far allowed it to weather the present market, withstand permitting delays, and, with cobalt hovering around US$50 per pound, that has allowed the company to get into a strong position to capitalize in the very near future. With construction set to begin around July and production scheduled for late next summer, Formation looks ready to impress, and the doorstep looks fairly clear.

The company is presently in the last leg of the permitting process at its 100 per cent owned Idaho Cobalt Project, and consequently Mari-Ann Green is convinced that “2008 is Formation’s year.” Permitting was begun in 2001, but slowed due to cash shortfalls. In December 2003, benefiting from a large cash injection, the project was firmly set back in motion. Since then the company has spent approximately US$15 million to get to this stage in the permitting process.  At present, the project...