Metal forming company (FOMO-CSE, FOMTF-OTCPK, VF1-FSE) It has raised $22.4 million in a large-scale, non-brokered private placement and will use the projects to expand an ongoing drilling program at the company’s flagship N2 Gold project in Quebec. وهذا أعلى من الهدف السابق البالغ 15 مليون دولار.
The private placement consists of 49.8 million units and closed in two tranches. The first closed on May 19, 2026, and consisted of 31.14 million units consisting of 16.4 million dollar units at 37 cents per HD unit, 13.02 million flow units at 44 cents per unit foot, and 1.7 million Quebec flow units at 44 cents each for total proceeds of $12.5 million. The second tranche closed on May 21, 2026, and consisted of 18.6 million units, consisting of 2.04 million HD units at 37 cents each, 3.6 million FT units at 44 cents each, and 8.4 million Quebec charitable streaming units at 59.6 cents each for gross proceeds of 9.9 million.
The company said it plans to use the proceeds to expand the ongoing 30,000-metre drilling program at N2 to 75,000 metres. The project contains a historic global resource of 871,000 ounces, consisting of 18 million tons of gold grading 1.4 g/t, across four zones and 243,000 tons of gold grading 7.82 g/t across the Royal Jordanian Zone.
The N2 estate consists of 87 claims covering 44,000 hectares of land within the Abitibi sub-county in northwestern Quebec. The property is located just 25 kilometers south of the city of Matagami, Que., and the claims are accessible year-round by provincial highways and logging roads.
In a press release dated January 16, 2025, Formation said it had exercised an option to purchase a 100% interest in the N2 property from WALLBRIDGE MINING LIMITED (Wm-TSX, WC7-FWB). Formation said it could exercise the option by paying $550,000 in cash and issuing 4.0 million common shares. It also pledged to complete work expenditures worth $5.0 million over six years. Balmoral Resources, which merged with Wallbridge in 2020, acquired the property in 2010. Balmoral subsequently conducted a VTEM study to compile data and routing property-wide IP for 14.4 kilometers that covered three known mining horizons. Formation said its maiden campaign has exceeded expectations to date, confirming geological continuity and delivering strong and consistent gold intercepts in holes drilled within the northern corridor of Area A, including 1.8 g/t at a depth of 21.9 meters starting at 154.4 meters downhole.
The company said its drilling strategy for the remainder of 2026 will focus on drilling extending to the east and west of Block A, along strike where it believes up to 8.0 km may be mined in total, and to the south where it recently identified visible gold in a 400-metre graded drill hole.
On Friday, Formation shares rose 1.4%, or $0.005, to 36.5 cents. Shares are trading in a 52-week range of 52 cents to 24 cents.
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