Key Takeaways:
Formation Metals Inc. (CSE:FOMO) has increased its non-brokered private placement to CAD $22 million, a 47 percent increase from the initial $15 million, to expand drilling at its N2 Gold Project in Quebec.
The upsizing was driven by strong investor demand that left the order book oversubscribed, the company said in a news release on May 19, 2026.
Proceeds will fully fund a 75,000-metre drill program, significantly expanding the current 30,000-metre campaign. The N2 project hosts a historical resource of approximately 871,000 ounces of gold, including a high-grade zone with intercepts as high as 51 g/t Au over 0.8 metres.
The financing accelerates exploration at a project with significant untested strike length in Quebec's prolific Abitibi region, as gold prices trade near record highs. Formation aims to define an open-pit resource, leveraging wide, near-surface intercepts and proximity to existing infrastructure.
The newly funded 75,000-metre drill program will build on a successful 30,000-metre campaign that has confirmed wide, continuous gold intercepts at the project's A-Zone. Recent results include 0.95 g/t Au over 61.1 metres and 1.75 g/t Au over 30.4 metres, validating the company's geological model.
The strategy will focus on extensional drilling along strike at the A-Zone, where only 1.65 km of a potential 8 km mineralized trend has been tested. Drilling will also target a 400-metre southern step-out where visible gold was recently identified.
Formation's N2 Gold Project is located in the Casa Berardi trend, a region known for multi-million-ounce deposits. The project sits just 1.5 km east of the former Vezza mine, which produced over 100,000 ounces of gold.
The property contains six known mineralized zones, all of which remain open for expansion. The two highest-priority zones are:
In addition to gold, a recent re-evaluation of historical drill holes revealed potential for base metals, with copper and zinc grades reaching up to 0.48 percent and 0.67 percent, respectively.
This article is for informational purposes only and does not constitute investment advice.
