Foran Mining prices $350 million private placement
Foran Mining Corp. [FOM-TSX, FMCXF-OTCQX] has priced a previously announced private placement that was expected to generate $350 million. The company said the private placement will consist of 116.7 million common shares priced at $3.00 per share. The private placement will consist of a subscription for approximately $156 million from the Canada Growth Fund Inc. as well as $90 million from Agnico-Eagle Mines Ltd. [AEM-TSX, AEM-NYSE] and $75 million from Fairfax Financial Holdings Ltd. as well as $28 million from institutional equity investors. As well, Foran Executive Chairman and CEO Dan Myerson will subscribe for approximately $1.0 million of the offering.
Foran has priced the offering after releasing a capital cost update for development of Phase 1 at its 100%-owned McIlvenna Bay VMS (volcanogenic massive sulphide) project in east-central Saskatchewan.
The McIlvenna Bay deposit is the largest undeveloped VHMS deposit in the region.
Foran Mining shares fell 3.0% or 10 cents to $3,15 in early trading Wednesday. The shares trade in a 52-week range of $4.69 and $2.82. Agnico-Eagle rose 0.76% or $1.12 to $147.49. The shares trade in a 52-week range of $175.33 and $86.66.
Agnico-Eagle currently owns 39.1 million common shares, representing approximately 9.9% of the issued and outstanding shares of Foran on an undiluted basis. Upon closing of the first tranche of the private placement, Agnico-Eagle expects to own 64.45 million common shares of 13.1% of the issued and outstanding shares (assuming that Foran issues an additional 73.1 million common shares in connection with the first tranche of the concurrent private placements). On closing of the second tranche, Agnico-Eagle is expected to own 69.1 million shares or 13.5% (assuming Foran issues an additional 13.4 million common shares in connection with the second tranche of the concurrent private placements).
In addition, Agnico-Eagle is announcing a previously announced follow-on investment in Azimut Exploration Inc. [AZM-TSXV]. On September 28, 2023, Agnico-Eagle acquired an additional 2.2 million shares of Azimut at $1.05 per share for $2.3 million from several sellers that participated in an offering of flow-through Azimut shares undertaken by Azimut. The share purchases upped Agnico’s stake in Azimut to 12% (10.2 million shares) from 10.06% or just over 8.0 million.
Azimut Exploration Inc. and Australia Stock Exchange-listed partner Mont Royal Resources Ltd. [MRZ-ASX] were in the news last year when the companies said exploration work is progressing at the Wapatik property in Quebec’s James Bay region following an “encouraging maiden drilling program and second drilling phase.”
Exploration work is focused on two main target types, including nickel-copper mineralization related to an ultramafic intrusion and gold mineralization related to extensive shear zones on strike with the Patwon Zone on the adjacent Elmer Property, which is 100%-owned by Azimut.