Formation Capital Corporation

Formation Capital Corporation

September 09, 2008 12:44 ET

Courts Grant Formation Capital Access Across Blackbird Mine Site to Mine Cobalt

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 9, 2008) - Formation Capital Corporation (TSX:FCO), has been informed by its wholly owned subsidiary, Formation Capital Corporation, U.S. ("the Company") that a ruling by the district court of the Seventh District of the State of Idaho has granted Formation Capital Corporation, U.S., access across the old Blackbird Mine Site for the purpose of mining cobalt ore from the Company's 100% owned Idaho Cobalt Project (ICP) located near Salmon, Idaho.

The ruling stipulates that, among other things, the Court was satisfied that the Company had made a sufficient "prima facie case" and proceeded with the appointment of three commissioners to determine the value of a permanent easement across the lands pursuant to State of Idaho statute 47-902, Right of Way for Mining Purposes. The Court also ordered the commissioners to proceed without reasonable delay to examine the premises and report to the court the amount the Company would need to pay for the easement. Once the Company has placed the monies with the court and has met the other conditions consistent with the Forest Service's Record of Decision (ROD), permanent access is acquired.

As announced in the Company's news release dated August 18, 2005, temporary access across the Blackbird Mine site was granted by the same court for exploration and other purposes. At that time, the judge reserved his decision on permanent access for all purposes until it became imminent that the Company required access for construction and mining purposes for the ICP. In June of this year, the Company announced that a favourable ROD had been issued by the Salmon-Challis National Forest Service for the ICP. The 45 day appeal resolution process ends October 2, 2008 and the Company expects that the Final Determination issued by the Regional Forester at that time will uphold the ROD issued in June.

Formation Capital Corporation 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.

Formation Capital Corporation

Mari-Ann Green, C.E.O.

The statements contained in this news release in regard to Formation Capital Corporation that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including Formation Capital Corporation'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.

Contact Information

  • Formation Capital Corporation
    E.R. (Rick) Honsinger, P.Geo.
    V.P. Corporate Communications
    (604) 682-6229
    (604) 682-6205 (FAX)