Formation Capital Corporation

Formation Capital Corporation

November 15, 2007 15:38 ET

Engineering & Procurement Progressing Well on Formation's Idaho Cobalt Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 15, 2007) - Formation Capital Corporation (the "Company") (TSX:FCO) is pleased to provide its shareholders with an update of the status on the engineering and procurement of its 100% owned Idaho Cobalt Project. While the permitting agencies for the Cobalt Project are progressing through the National Environmental Policy Act process, the Company has been aggressively engaged in the engineering and procurement of key equipment and personnel in preparation for the commencement of construction and ultimately, production.

In preparation for the receipt of mining and milling components, as well as providing an efficient staging area for the off-loading of mine concentrate for transportation to the Company's hydrometallurgical facility located in Kellogg Idaho, the Company has purchased an industrial facility on the outskirts of Salmon, Idaho. The 9,600 square foot facility is ideally located on a 3 acre lot in a Highway Commercial Zoning Area off of paved Highway 93 South. The metal building is completely insulated and has underground power service, four large overhead door loading and unloading bays strategically located with highway frontage. The Company reviewed numerous prospective industrial real estate properties and was very pleased to secure this first choice facility.

In addition, in preparation for the need to secure quality key personnel to oversee the construction and implementation of the Idaho Cobalt Project, the Company is pleased to announce it has hired Ms. Susan Shiplett to fulfill the role of Human Resources Director. Ms. Shiplett holds a Bachelor of Science degree in Management from Lewis-Clark State College. She most recently worked as a consultant for the Idaho Industrial Commission, Rehabilitation Division and previously held positions with Sunshine Mining and Refining Company as Human Resources Manager, Human Resources Specialist, Employee Relations & Office Manager, and Staff Payroll Accountant. The Company is currently in the process of interviewing for key positions such as General Mine Manager, Mine Superintendent and Mill Superintendent, while positions for an Environmental Coordinator, HR Manager and Controller for the Salmon, Idaho operations have been secured. Additional staff and training at the refinery has also been completed to accommodate its growing silver refining operation.

The streamlining of administrative procedures is also being performed in order to efficiently control and manage the implementation of numerous mine construction contracts and subcontracts associated with engineering and procurement of the Idaho Cobalt Project and the retro-fitting of the hydrometallurgical facility. Such measures include modifications to accounting and document control procedures as well as the implementation of risk management and IT controls.

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
    Mari-Ann Green
    (604) 682-6229
    (604) 682-6205 (FAX)
    Encompass Communications
    Investor Relations
    Toll Free: 1-877-566-6592