Foran Mining completes $100 million financing
Foran Mining Corp. [FOM-TSXV] shares were active Friday after the company announced the completion of a strategic $100 million private placement by certain entities controlled by Fairfax Financing Holdings Ltd.
The net proceeds will be used to advance the development of the McIlvenna Bay VMS (volcanogenic massive sulphide) deposit and centralized mill for the Hanson Lake District in Saskatchewan as well as for exploration on Foran’s property portfolio.
Foran shares advanced on the news, rising 0.93% or $0.02 to $2.17 on volume of 648,910. The shares are currently trading in a 52-week range of $2.63 and 15.5 cents.
Under the financing, Foran raised $50 million by issuing 27.8 million units at $1.80 per common share unit. Each unit is comprised of one common share and 0.288 of a common share purchase warrant, each of which can be exchanged for one common share for $2.09 for up to five years following the date of issuance. There is a total of 27.8 million common shares and 8.0 million warrants issued under the common share units.
Foran also raised $50 million by issuing the same number of non-voting units at $1.80 per unit. Each non-voting unit consists of one non-voting share and 0.288 of a warrant. Each whole warrant may be exchanged for one common share at $2.09 for up to five years from the issue date.
The common shares, non voting shares and warrants issued in connection with the financing, as well as common share underlying the warrants are subject to a statutory hold period of four months and one day from the financing closing date.
Foran Mining is a copper-zinc-gold-silver exploration and development company, which is planning to build the first mine in Canada designed to be carbon neutral from day one.
The company is currently in the feasibility stage of development at McIlvenna Bay. McIlvenna Bay is a copper-zinc-gold-silver-rich VMS deposit that is intended to be the centre of a new mining camp in a prolific district that is already been producing for 100 years.
McIlvenna Bay sits just 65 kilometres from Flin Flon, Manitoba, and is part of the world-class Flin Flon greenstone belt that extends from Snow Lake, Man., through Flin Flon to Foran’s ground in eastern Saskatchewan, a distance of over 225 kilometres.
Foran owns a 100% interest in the McIlvenna Bay property, subject to a 1% NSR held by Cameco Corp. [CCO-TSX, CCJ-NYSE] and BHP Billiton Ltd. [BHP-NYSE, BHPLF-OTCPK]. The NSR has a buy-out provision in favour of Foran for $1 million at any time. Some of the claims that make up the McIlvenna Bay property are subject to a $0.75 per tonne of ore extracted net tonnage royalty, with the right of first refusal in favour of Foran.