Falco Resources Ltd. [FPC-TSXV] said it has closed the final tranche of a private placement financing that has raised $17.28 million. Proceeds are earmarked for development of Falco’s flagship Horne 5 gold project in Rouyn-Noranda, Quebec
The company said the final tranche of $5 million has closed, with Investissement Quebec (IQ) acting as agent for the government of Quebec. It was subscribed to on the same terms and conditions as those entered into by other investors in August, 2021. Under the terms of the final tranche, Falco has issued an aggregate of 12.5 million units at 40 cents each.
Each unit consists of one common share of the company and one-half of one common share purchase warrant. Each warrant is exercisable to acquire one common share until July 31, 2025 at an exercise price of 55 cents. However, the expiry date of the warrants can be accelerated by the company at any time following the six-month anniversary of the closing date if the volume-weighted average trading price of the common shares on the TSX Venture Exchange is greater than 80 cents for any 10 consecutive trading days.
The Horne 5 deposit is located immediately below the former Horne mine, which was operated by the company previously known as Noranda from 1926 to 1976. Those operations produced approximately 2.5 billion pounds of copper and 11.6 million ounces of gold.
After merging with Falconbridge Ltd. in 2005, Noranda continued to operate under the Falconbridge name until it was acquired in 2006 by Swiss mining company Xstrata, which was acquired by Glencore PLc (also of Switzerland) in 2013.
The Horne 5 Project is estimated to contains 6.0 million ounces of proven and probable gold equivalent reserves.
Net proceeds from the offering will be used for engineering work, the preparation of technical and environmental studies relating to the Horne 5 project, and for general corporate purposes. This critical work, as well as the required authorizations currently being sought, represent the final steps required prior to commencing construction of the Horne 5 project.
“We are delighted to conclude this last tranche, which brings the financing to a total of $17.28 million, and which will allow us to continue our operations in preparation for the next fundamental steps in the development of our project,’’ said Falco President and CEO Luc Lessard.
“We are grateful for our shareholders’ strong participation in the offering,” he said. Key shareholders, include Osisko Development Corp. [ODV-TSXV] and Caisse de depot et placement du Quebec
On December 15, Falco shares closed at 28 cents and currently trade in a 52-week range of 48 cents and 22 cents.