Foran Mining raising $25 million for carbon neutral mine
Foran Mining Corp. [FOM-TSXV] has struck a deal with a group of underwriters to increase the size of a previously announced private placement to $25 million. That’s up from an earlier target of $20 million.
Foran Mining shares advanced on the news, rising 18.5% or 13 cents to 83 cents on volume of 977,971. The shares are currently trading in a 52-week range of 78 cents and$0.08.
Under the amended terms, the offering will now consist of up to 11.5 million common shares at 65 cents each for gross proceeds of $7.5 million, and up to 19.12 million flow-through common shares at 91.5 cents each for gross proceeds of $17.5 million.
Proceeds of the sale of the flow-through shares will be used to incur eligible Canadian exploration expenses that will qualify as flow-through mining expenses under the Income Tax Act (Canada) related to the company’s projects in Canada.
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 for its McIlvenna Bay VMS (volcanogenic massive sulphide) deposit in Saskatchewan. 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 is 65 km 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-OTC]. 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.
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