Biological Opinions Grant Endangered Species Act Exemption Permit for Idaho Cobalt Project
Vancouver, B.C., May 29, 2008 - Formation Capital Corporation ("Formation", FCO-TSX,)
is pleased to announce that its wholly owned subsidiary, Formation
Capital Corporation, U.S. (the "Company") is in receipt of copies of
the Biological Opinions for its Idaho Cobalt Project ("ICP") completed
by National Oceanic and Atmospheric Administration's National Marine
Fisheries Service ("NMFS") and the U.S. Fish and Wildlife Service
("USFW"). The finalized reports conclude that the ICP, as proposed, is
not likely to jeopardize the continued existence of Endangered Species
Act listed or regionally sensitive species and is not likely to destroy
or adversely modify designated critical habitats for those species.
The Endangered Species Act (ESA) prohibits the taking of endangered or
threatened species without a specific permit or exemption. Among other
things, an action that harasses, wounds, kills or harms by altering the
habitat of any listed species is a taking. The Biological Opinions
contain Incidental Take Statements that exempt the ICP from a taking
when the terms and conditions of the Incidental Take Statement are
followed. In addition, NMFS outline two conservation recommendations to
avoid, minimize, or otherwise offset potential adverse effects on
Essential Fish Habitat.
"What this means", said Bill Scales, President of the Company, "is that
the 135 day consultation period described in Formation's news release
of January 09, 2008 is over and the Forest Service and the
Environmental Protection Agency (EPA) are now able to include the NMFS
& USFW's terms and conditions and conservation recommendations in
the Forest Service and EPA's Records of Decision and finalize them. We
understand that the Forest Service will issue their Record of Decision
in conjunction with the Final Environmental Impact Statement (EIS) and
that the EPA will issue their Record of Decision and Final National
Pollution Elimination Discharge Permit 30 days after the Final EIS has
been released". He continued, "they have everything they need now. It's
just a matter of time."
Quoting from the Biological Opinion prepared by NMFS, Guy Jeske,
General Manager for the ICP, said that "NMFS concludes that the
actions, as proposed, are not likely to jeopardize the continued
existence of Snake River spring/summer Chinook salmon, Sockeye salmon
or Snake River Basin steelhead, or result in the destruction or adverse
modification of designated critical habitats for Snake River
spring/summer Chinook salmon or Snake River Basin steelhead. USFW's
opinion concludes that the ICP is also not likely to jeopardize the
continued existence of the Bull trout."
"It is very good news that the ESA threatened or endangered species as
a whole will not be affected by the ICP", explained Guy Jeske.
"However, during construction and operations individual salmon or
steelhead may be unintentionally harmed", he continued. "That is the
reason we need the "take" exemption." The reasonable and prudent
measures outlined in the opinions include measures to minimize
incidental take from construction related activities, effects to water
quality, more specifically nitrate levels, and monitoring and reporting
requirements and the terms and conditions that implement these
measures. "This will insure that the effects on fish in the area will
be minimal", Jeske added.
"This is a testament to the Idaho Cobalt Project's solid mine plan
where the preservation of the environment has always been considered
high priority", continued Jeske. "It shows that the design of
sustainable, responsible mining can be achieved without compromising
the surrounding ecosystem -- and we are very proud of that
accomplishment."
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 gas to liquid technology, and batteries
used in hybrid and electric cars. Formation trades on the Toronto Stock
Exchange under the symbol FCO.
Formation Capital Corporation
"Mari-Ann Green"
Mari-Ann Green, C.E.O.
For further information please contact:
E.R. (Rick) Honsinger, P.Geo., V.P. Corporate Communications
Formation Capital Corporation, 1510 -- 999 West Hastings Street, Vancouver, BC, V6C 2W2
Head Office: 604-682-6229, Investor Relations: Email: inform@formcap.com - Or visit our Web site at: formcap.com
