Formation Capital Corporation

Formation Capital Corporation

March 25, 2009 08:00 ET

No Appeals Filed Against Formation's Idaho Cobalt Project NPDES Permit

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 25, 2009) - Formation Capital Corporation ("Formation") (TSX:FCO) is pleased to announce that its 100% owned subsidiary, Formation Capital Corporation, U.S. (the Company) has been informed by the U.S. Environmental Protection Agency, Region 10 (EPA) that no appeals were filed against the National Pollutant Discharge Elimination System (NPDES) permit for the Idaho Cobalt Project (ICP).

"This is a very significant and positive development for the project," stated Guy Jeske, General Manager for the ICP. "A great deal of the permitting process revolves around the issue of water quality. The Company's commitment to ensure the mine will have no effect on the quality of water in the basin is clearly evident here."

Bill Scales, President of the Company, added, "The NPDES permit is now final and cannot be appealed judicially. The NPDES permit is one of the three main items required by the Forest Service before the project can proceed. The second requirement is the final revision to the Plan of Operation, which will be completed after the Regional Forester upholds the Record of Decision for the ICP, expected towards the end of April. The third requirement is the placement of an appropriate reclamation bond, which is part of the mine financing."

As previously announced in a Formation news release dated February 11, 2009, the NPDES permit allows the Company to discharge treated water from the ICP to Big Deer Creek and outlines the terms and conditions necessary to ensure compliance. In addition, included with the NPDES permit is the Idaho Department of Environmental Quality (IDEQ) Final Section 401 Water Quality Certification stating that the terms and conditions of the NPDES permit comply with Idaho Water Quality Standards.

Once in production, Formation's Idaho Cobalt Project will provide the United States with high purity super alloy grade cobalt metal required for critical applications such as the construction of jet airplane engines, land based turbines, catalysts for coal and gas to liquid technology, and batteries used in hybrid and electric cars. It will also provide close to 200 well paying jobs in Lemhi and Shoshone Counties in Idaho, and generate over US$8 million in tax revenues for the County, State and Federal governments. 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)