Foran Mining Corporation (TSX: FOM) (OTCQX: FMCXF) (“Foran” or the
“Company”) is pleased to announce a series of brokered and
non-brokered strategic investments for up to $315 Million,
consisting of a brokered equity private placement for which the
Company has received indications of interest from several of its
existing shareholders, including Fairfax Financial Holdings Limited
(“Fairfax”), and an equity private placement by Agnico Eagle Mines
Limited (“Agnico Eagle”). The Company is also announcing that a
term sheet has been signed with a fund managed by Sprott Resource
Lending Corp. (“Sprott”) to upsize its existing US$150 million
senior secured project credit facility to US$250 million, which
will be used to advance construction at the McIlvenna Bay Project.
The strategic investments underscore the
strength of the Company’s 100%-owned McIlvenna Bay Project in
Saskatchewan (the “McIlvenna Bay Project” or the “Project”), and
demonstrate robust, long-term shareholder backing. Support from the
cornerstone investors emphasizes the quality and exploration
potential at the Project.
In conjunction with the comprehensive financing
package announced today, the Company’s Board of Directors has made
the formal decision to proceed with the construction of the
McIlvenna Bay Project. In addition, the Company is providing an
updated initial capital cost estimate for the Phase 1 plan, a
project development update, and an initial target for further
exploration at Tesla (“Exploration Target”).
Key Highlights:
- $222
million brokered private placement, with participation indications
received from various existing long-term shareholders, including
Fairfax, underscoring continued strategic support and confidence in
the McIlvenna Bay Project's development, highlighting the Project's
potential and the Company’s commitment to driving long-term
shareholder value
-
Concurrent strategic investment from Agnico Eagle will
bring another cornerstone shareholder to the Company, with an
expected 9.9% pro forma equity ownership on a basic voting
basis
- Upsized
credit facility to US$250 million from US$150 million with Sprott,
will provide greater financial flexibility as the Company proceeds
to full development of the McIlvenna Bay Project.
- Phase 1
capital budget expected to be eligible for Federal
Investment Tax Credits, potentially leading to refundable
investment tax credits of approximately $130-150
million
- Board of
Directors made the formal construction decision, with initial
production expected in Q4 2025 and commercial production expected
in H1 2026
- Phase 1
Capital Cost estimated at US$604 million to commercial production,
optimized and focused on initial phase production, while laying the
groundwork for potential future Phase 2 expansion
opportunities
- Phase 2
Expansion Planning - Foran is evaluating a phased expansion
approach, leveraging recent exploration discoveries at the Tesla
and Bridge Zones. The Company has initiated modeling and expedited
the necessary fieldwork to assess the estimated growth potential
identified in the Tesla Exploration Target
- Initial
Exploration Target for further exploration at the Tesla Zone of
28-45 Mt at 0.9-1.3% Cu, 3.6-5.4% Zn, 22-34 g/t Ag and 0.2-0.3 g/t
Au (2.2-3.2% CuEq). The Tesla Zone remains open in all directions,
with ongoing summer drilling aimed at extending known
mineralization. Concurrently, high-priority regional exploration
targets are being tested, highlighting the growth potential of the
Project
Dan Myerson, Foran’s Executive Chairman &
CEO, commented: “Foran is at an exciting inflection point in our
journey towards critical mineral production, with the Board of
Directors making the formal decision to proceed with the
construction of the McIlvenna Bay Project. Continued support from
our largest shareholder, Fairfax, highlights the unique nature of
our generational project and the growing demand for new sources of
copper, zinc, gold, and silver. Agnico Eagle is a partner of choice
within the mining industry, recognized globally for its leading
practices, and we are proud to have Agnico Eagle as a strategic
investor. Partnering with G Mining Services as our integrated
project management team represents the ultimate opportunity to
ensure a successful build, leveraging their unparalleled expertise
and proven track record in delivering projects on time and on
budget, most recently at Lundin Gold’s Fruta Del Norte project,
Equinox’s Greenstone project, and G Mining Ventures’ Tocantinzinho
project. Our collective work is focused on building for the future
by scaling this world-class asset through evaluating our ongoing
exploration success for upside project opportunities and leveraging
the current commodity price environment all while focused on
maximizing risk-adjusted value per share. In an era where permitted
copper assets located in safe geopolitical jurisdictions are both
rare and vital, Foran is strategically positioned to support global
growth in green energy, infrastructure, and artificial
intelligence, moving us towards a decarbonized future.”
Brokered Private Placement
The Company is pleased to announce that it has
entered into an agreement with Eight Capital, BMO Capital Markets,
and National Bank Financial as co-lead agents and joint
bookrunners, on behalf of a syndicate of agents (together the
“Agents”), pursuant to which the Company has launched a proposed
private placement for aggregate gross proceeds up to $222,000,008
(the “Brokered Offering”).
The Brokered Offering will consist of (i) up to
47,407,408 common shares of the Company (“Common Shares” at an
issue price of $4.05 per Common Share, for gross proceeds of up to
$192,000,002; and (ii) up to 4,501,874 Common Shares with each such
Common Share to be issued as a “flow-through share” within the
meaning of the Income Tax Act (Canada) (the “FT Shares”) at an
average issue price of $6.66 per FT Share, for gross proceeds up to
$30,000,006. The Company has received several indications from
existing shareholders, including Fairfax, to participate in the
Brokered Offering. Pricing of the Common Shares and FT Shares is
subject to approval of the Toronto Stock Exchange (the “TSX”).
The net proceeds of the Brokered Offering will
be used for exploration and development of the Company’s mineral
projects in Saskatchewan, and for working capital and general
corporate purposes. The Company will use an amount equal to the
gross proceeds from the sale of the FT Shares, pursuant to the
provisions of the Income Tax Act (Canada), to incur eligible
"Canadian exploration expenses" that qualify as "flow-through
critical mineral mining expenditures" as both terms are defined in
the Income Tax Act (Canada) (the "Qualifying Expenditures") related
to the Company’s mineral projects located in Saskatchewan, on or
before December 31, 2025, and will renounce all of the Qualifying
Expenditures in favour of the subscribers of the FT Shares with an
effective date not later than December 31, 2024.
The Brokered Offering is scheduled to close on
or about August 8, 2024, or such other date as the Company and the
Agents may agree, and is subject to certain conditions including,
but not limited to, the execution of an agency agreement and the
receipt of all necessary regulatory and other approvals, including
that of the TSX.
The securities issued pursuant to the Brokered
Offering shall be subject to a four-month plus one day hold period
commencing on the day of the closing of the Brokered Offering under
applicable Canadian securities laws. The securities being offered
have not, nor will they be registered under the United States
Securities Act of 1933, as amended, and may not be offered or sold
within the United States or to, or for the account or benefit of,
U.S. persons in the absence of U.S. registration or an applicable
exemption from the U.S. registration requirements. This release
does not constitute an offer for sale of securities in the United
States.
Agnico Eagle Investment
The Company is pleased to announce that it has
entered into a subscription agreement pursuant to which Agnico
Eagle has agreed to acquire up to 22,962,963 Common Shares at an
issue price of $4.05 per Common Share for gross proceeds of up to
$93,000,000. The net proceeds will be used for development of the
McIlvenna Bay Project, working capital and general corporate
purposes.
Upon closing of Agnico Eagle’s investment and
the Offering, Agnico Eagle is expected to have a 9.9% equity
interest in the Company on a basic voting basis.
Closing of the Agnico Eagle investment is
subject to a number of conditions, including closing of the
Offering and receipt of all necessary regulatory and other
approvals (including approval of the TSX). It is anticipated that
the Agnico Eagle investment will close concurrently with the
Offering. The securities issued to Agnico Eagle will be subject to
a four-month plus one day hold period commencing on the day of the
closing under applicable Canadian securities laws.
In connection with Agnico Eagle’s investment,
Foran and Agnico Eagle will enter into an investor rights
agreement, pursuant to which Agnico Eagle is entitled to certain
rights, provided Agnico Eagle maintains certain ownership
thresholds in Foran, including but not limited to: participation
rights, top-up rights, the right to appoint one member to Foran’s
Board of Directors and the ability to participate in a technical
committee to provide recommendations and advice to the Company on
technical matters.
Credit Facility Upsizing
On December 21, 2022, Foran announced the
closing of a US$150 million senior secured project credit facility
(the “Credit Facility”) with a fund managed by Sprott. The Company
is pleased to announce that it has signed a term sheet for an
upsize of the Credit Facility to US$250 million, subject to
completion of all due diligence, definitive credit documentation
and approval by Sprott’s investment committee. The interest rate on
the proposed upsized Credit Facility remains unchanged and the
Company will provide further details upon completion of definitive
documentation and closing of the upsizing, which is expected to
occur in Q3 2024.
Investment Tax Credits
Foran and its tax advisors have reviewed the
initial capital budget for the Phase 1 plan at the McIlvenna Bay
Project, in conjunction with draft legislative proposals relating
to the Clean Technology Manufacturing Investment Tax Credit and
legislation for the Clean Technology Investment Tax Credit, first
introduced in the 2023 Canadian Federal Budget. As contemplated,
each tax credit would provide for up to 30 per cent of the cost of
investment in eligible property used for eligible activities
through a refundable investment tax credit mechanism.
Based on a review of the draft legislative
proposals and subsequent updates provided in the 2024 Canadian
Federal Budget, Foran and its tax advisors estimate that up to
$440-$510 million of expected costs associated with the Phase 1
capital budget may be deemed eligible under the aforementioned tax
credits, leading to a potential refundable investment tax credit
range of approximately $130-150 million. Additional upside to the
investment tax credits may be realized in future periods as
sustaining capital is incurred and growth capital is allocated to a
potential Phase 2 expansion. It is expected Foran would claim the
qualifying costs annually, as incurred, and credits would be
received after filing of the Company’s annual income tax
return.
Government Funding
Initiatives
The Canadian federal government has introduced
several funding programs aimed at supporting critical mineral
infrastructure across the supply chain. Foran has applied for
funding through two of these programs: the Strategic Innovation
Fund via the Ministry of Innovation, Science, and Economic
Development), and the Critical Mineral Infrastructure Fund through
Natural Resources Canada. The Company is progressing through the
application process and will provide updates on the potential
funding outcomes as information becomes available.
McIlvenna Bay Project Overview and
Initial Capital
The McIlvenna Bay Project is located in
east-central Saskatchewan approximately 375km northeast of
Saskatoon, and 85km West of Flin Flon Manitoba, and is accessible
year-round via a 18km all-weather road connected to Saskatchewan
Provincial Highway 106.
The Project is designed to be a decline/shaft
underground mining operation using typical long-hole mining methods
for ore extraction with cemented paste fill replacement. Ore is
expected to be processed via a conventional single stage crushing
circuit with a semi-autogenous grinding (“SAG”) mill and ball mill
design. Grinding is planned to be followed by a flotation circuit
to produce both a copper and zinc concentrate for transportation
from site to the Flin Flon area for shipment by rail for further
refinement. Additionally, a pyrite concentrate will be produced and
introduced within the cemented paste fill recipe for storage
underground.
Foran has been conducting various trade-off
studies to optimize the Project, focusing on maximizing Phase 1
production while laying the groundwork for future growth
opportunities. Through these optimization studies, several
initiatives have been incorporated into Phase 1 construction,
facilitating future transitions for future expansion opportunities.
These efforts ensure that planning towards potential Phase 2
expansion opportunities is well-aligned with the Company's
long-term strategic goals.
These initiatives include:
-
Increased Phase 1 nameplate throughput capacity to 4,900
tpd. The Company has enhanced throughput capacity to
maximize efficiency, increase margins, accelerate cash flows, and
provide the scope and scale for future potential expansion
opportunities, while accelerating investment to take advantage of
the favorable tax environment associated with the aforementioned
investment tax credits.
-
Construction of the hydropower transmission line with
sufficient capacity for future potential load increases.
While Foran is utilising the existing distribution line with
approximately 1.2 MW in available capacity, the Company, through
work managed by SaskPower, will construct a new 77km-long dedicated
138 kV transmission line, sourced from the Island Falls Hydro
Generating Station, targeted to be completed and commissioned
earlier than envisioned in the Technical Report on the Feasibility
Study for the McIlvenna Bay Project (the “2022 Feasibility Study”),
dated April 14, 2022 with an effective date of February 28, 2022.
This transmission line will have additional load capacity
available, enhancing economies of scale in future expansion
phases
- G Mining
Services Integrated Project Management Team Strategy.
Updated costs associated with the selection of G Mining Services
Inc. (“GMS”) as our integrated project management team partner have
been included. GMS has a proven track record of delivering projects
successfully on time and on budget, including Lundin Gold Inc.'s
Fruta del Norte Project in Ecuador, Newmont Corporation’s Merian
Mine in Suriname, Equinox Gold Corp.’s Greenstone Project in
Ontario, and most recently the Tocantinzinho project in
Brazil.
-
Purchasing mobile underground equipment. The
Company has elected to purchase and finance its battery electric
vehicle fleet, including batteries and chargers, rather than opting
to lease as envisioned in the 2022 Feasibility Study. The Company
believes this to be a prudent capital allocation decision in light
of the favourable environment for federal government tax
incentives, including the Clean Technology Investment Tax
Credit.
- Purchase
of permanent camp. The Company has purchased a permanent
288-person camp, leveraging favorable purchasing opportunities,
instead of leasing as anticipated in the 2022 Feasibility
Study.
-
Increased underground development. The Company
intends on increasing lateral development during the construction
phase, opening more working fronts for production. This is expected
to benefit mine sequencing and production ramp-up during
commissioning.
-
Additional Redundancies. To mitigate ramp-up risks
and ensure a smooth production start, the Company has included
provisions for early onboarding of team members, integrated
additional capacities within the grinding, filtration and paste
circuits and increased the size of the mobile underground
fleet.
The initial capital cost estimate outlined in
the 2022 Feasibility Study was revised to incorporate detailed
engineering efforts, including expansionary capacity and additional
processing redundancies. The initial capital budget is based on
capital expenditures from June 1, 2024 through to commercial
production.
Phase 1 project capital costs have been
estimated to completion, net of costs incurred up to and including
May 31, 2024, with a resulting US$604 million capital cost set out
in Table 1 below.
Table 1 – Initial Capital Cost
Summary
Items |
Phase 1 Capital Budget (in
US$M)1 |
Process Plant |
$126 |
Underground Development, Equipment & Infrastructure |
$114 |
Project Indirects |
$112 |
Infrastructure |
$105 |
Owner's Costs |
$82 |
Facilities & Surface Equipment |
$22 |
Contingency |
$56 |
Net Pre-Commercial Production Credits |
-$14 |
Total |
$604 |
¹ USD/CAD 1.37. |
|
² Values may not add up due to rounding. |
Development Timelines and Phase 1
Production
In accordance with the Phase 1 capital budget,
early works have already commenced, with completion of preliminary
earthworks and concrete activities within the process plant and
ancillary buildings underway. After reaching the first two mining
levels underground earlier this year, first development ore from
underground is expected to be extracted in H2 2024. Mechanical
completion of the grinding and processing circuit is expected in H2
2025, with hot commissioning expected to commence in H2 2025. The
Company is targeting an ore stockpile of approximately 275,000
tonnes to support commissioning, and the anticipated ramp-up to
commercial production expected to occur in H1 2026. A timeline
towards commercial production is set out in Table 2 below.
Table 2 – Commercial Production
Timelines
McIlvenna Bay Project
Update
Description |
Progress to Date (as at May 31, 2024 unless otherwise
stated) |
Health & Safety |
- Lost Time Incident Frequency Rate
(LTIFR) year-to-date of 0 and a Total Recordable Incident Frequency
Rate (TRIFR) year-to-date of 3.2 after over 300,000 total
person-hours worked in 2024.
|
Underground Development |
- Approximately 400m of total decline
advance has been completed to date and total development
underground of 610 m.
- Development rates have ramped up
every month reaching 184 m in June.
- Underground lateral development
activities have been focused on progressing the mine decline
forward and opening up the 60 m mining level.
|
Engineering |
- Engineering progress for activities
planned for 2024 and early 2025, such as the mill foundation,
process and paste plant buildings, treatment plants, roads, ponds,
berms, and truck shop building is above 90%.
- Approximately 60% of detailed
engineering has been completed.
|
Procurement |
- Procurement is managing 185 work
packages, with overall work awarded at approximately 54%.
|
Construction Progress |
- The Company has poured first
concrete for the leveling base of the SAG and ball mills.
- Construction of the permanent camp
is completed.
- Construction of the offices, sewage
utilities, and transformer in the warehouse facility is
significantly advanced and is expected to be completed in
July.
- Earthworks continue on the existing
Waste Rock Ore Pad berm expansion, road widening, and mill mass
earthworks and stripping.
|
Permitting |
- Following receipt of Environmental
Assessment Permit Approval in July 2023, Foran has received permits
for critical path early works programs including approval to
operate its temporary LNG generating plant and concrete batch
plant.
- Permits have been received for the
processing plant foundation, fresh air raise, preliminary mine
terrace earthworks and potable water and sewage treatments
plants.
|
Human Resources |
- Approximately 120 Foran employees
and 200 contractors are currently employed at the Project.
|
Note: LNG = liquid natural gas.
Potential Phase 2 Expansion
Opportunities
The Company is committed to evaluating expansion
opportunities following the recent discoveries of the Tesla and
Bridge Zones, immediately adjacent to the McIlvenna Bay deposit,
and the Company’s growing geologic understanding of its properties.
Leveraging the growing geologic understanding of these properties,
the Company has initiated modeling and are expediting the necessary
fieldwork to assess the growth potential identified in the Tesla
Exploration Target tonnage and grade work below. This proactive
approach represents an important step towards exploring future
opportunities to scale and maximize value from McIlvenna Bay.
Tesla Zone Exploration Target Tonnage
and Grade
Foran is pleased to announce an initial
Exploration Target tonnage and grade range for the Tesla Zone
(“Tesla Zone” or “Tesla”), which lies adjacent to and approximately
300 metres north of the McIlvenna Bay Deposit and linked by the
recently discovered Bridge Zone outlining the potential scale of
the current drill-defined zone. Although Tesla has not yet been
drilled to a sufficient density to support a mineral resource
estimate, the close proximity of Tesla to the McIlvenna Bay
deposit, coupled with the tenor of the results and the size of the
footprint of mineralization defined by drilling to date, indicate
that Tesla is quickly evolving into an important discovery with
upside potential for McIlvenna Bay. The estimated tonnage and grade
range for the Tesla Exploration Target is set out in Table 3
below.
Table 3 - 2024 Tesla Exploration
Target**
**The potential quantity and grade of
this Exploration Target is conceptual in nature. There has been
insufficient exploration to define a mineral resource in this area
and it is uncertain if further exploration will result in the
target being delineated as a mineral resource.
Notes:
- Canadian
Institute of Mining, Metallurgy and Petroleum (“CIM”) definitions
for mineral resources were followed; Cu = copper, Zn = zinc, Ag =
silver; Au = gold, CuEq = copper equivalent
- Exploration
Target is based on the results from 32 drill holes using a Cu
cut-off grade of 0.3% Cu for the copper-dominated lenses and a Zn
cut-off grade of 1.0% Zn for the zinc-dominated lenses to define
the wire frames for the mineralized zones; Assays within these
lenses were composited into 1m composites, with Zn capped at 20%
and Cu capped at 7%
- CuEq grades were
derived using provisions for metallurgical recovery based on life
of mine (LOM) metallurgical recovery rates derived from test work
on blended ores for the McIlvenna Bay Deposit completed as part of
the 2022 Feasibility Study: 91.1% Cu, 79.8% Zn, 88.6% Au and 62.3%
Ag. Metal prices used are US$4.00/lb. Cu, US$1.50/lb. Zn,
US$1,800/oz. Au, and US$20.00/oz.
- A specific
gravity of 3.59 g/cm3 was applied to massive sulphide lenses, and
3.00 g/cm3 was applied to stockwork lenses in the Exploration
Target volume based on the results of 85 density measurements of
mineralized drill core
The tonnage and grade range estimates for the
Tesla Exploration Target incorporate over 42,969 metres of drilling
in 32 drill holes and wedges completed since the discovery of Tesla
in 2022. The Exploration Target volume is supported by
three-dimensional wire frames constructed to connect the
mineralized lenses between the drill holes. The wire frames define
a mineralized footprint for Tesla extending 1,200 m along strike
and 500-700 m in the down dip direction. Current drilling has
defined the Tesla footprint over a 1,050 m strike length where it
remains open for expansion. Based on the thick intersections
obtained at the current periphery of the drilling, it is clear that
the mineralization extends beyond the drilling and therefore the
strike of the wireframe was extended to 1,200 m, based on support
from borehole electromagnetic (“EM”) data collected and interpreted
from the winter 2023 and 2024 drill programs that define robust
plate models indicating that the Tesla Zone extends for at least
that distance. Multiple lenses of mineralization were modelled
based on mineralization style, copper and zinc ratios, and the
location of the mineralization within the stratigraphy. The
thickness of the modelled lenses varies from 2m to 20m, with an
average combined thickness of 10m.
Wireframes were created in Leapfrog Geo using a
threshold of 0.3% Cu for copper-dominated lenses, and 1% Zn for
massive sulphide lenses. Assays within these lenses were composited
into 1 m composites, with zinc capped at 20% and copper capped at
7%. The capped composites were used to estimate the Exploration
Target using an inverse distance weighting to the second power
(ID2) methodology with a nearest neighbour estimation as a
check.
Grade ranges were developed by applying a
copper-equivalent cut-off similar to those used at McIlvenna Bay.
Copper equivalent values were calculated using metal prices of
US$4.00/lb Cu, US$1.50/lb Zn, US$20.00/oz Ag and US$1,800/oz Au and
life-of-mine metallurgical recovery rates derived from test work on
blended ores for the McIlvenna Bay Deposit completed as part of the
2022 Feasibility Study: 91.1% Cu, 79.8% Zn, 88.6% Au and 62.3% Ag.
A specific gravity of 3.59 g/cm3 was applied to massive sulphide
lenses, and 3.00 g/cm3 was applied to stockwork lenses in the
Exploration Target volume based on the results of 85 density
measurements of mineralized drill core.
The continuity of the geology and the
interpreted volumes of mineralization across the Tesla Zone is well
established through multiple datasets, and additional drilling
continues to demonstrate the expansion potential of Tesla through
the intersection of multiple lenses of mineralization along the
periphery of the current footprint. The stratigraphy through the
Tesla area is consistent across all the drill holes, based on both
drill core logging and over 30,000 m of TruScan data that verify a
geochemical link between the geological units. The TruScan data
also confirms the stratigraphic and likely genetic link between the
large McIlvenna Bay Deposit and Tesla by confirming that
mineralization in both areas sits directly below a common marker
horizon that can be traced geochemically between the two areas. The
continuity of mineralization between drill holes at Tesla is also
supported by the orientation of drill core angles and structural
data that indicate the mineralized horizons form consistent tabular
bodies between drill holes with consistent styles of mineralization
within individual lenses (i.e. massive to semi-massive sulphides
versus stringer styles, etc). Bore hole EM surveys were completed
on several individual drill holes during the drill programs. These
consistently identify EM conductors associated with the
mineralization, aligning between drill holes to define trends
parallel to the mineralization. The data also indicates that the
mineralization likely extends beyond the current drilling edges,
supporting the interpretation that the Tesla Zone remains open for
potential expansion with further drilling.
McIlvenna Bay Project Development
Photos
Site Layout
First Concrete Pour for SAG & Ball Mills
Sandvik BEV Jumbo at 60 Level
Rebar Dowel Installation at Ball Mill
Haul truck being loaded underground
Installing ground support in 60-90L Decline
Loading explosives for development round in 60L Access
Mine Geologist Conducting Geological Mapping
New Kitchen & Commissary
New Gym
New Indigenous Cultural Room
Members of our Foran-PBCN joint environment committee meeting
after site tour
Veracio TruScan in Operation On Site
Foran Fire & Rescue Training
Qualified Persons and Quality Assurance and Quality
Control
Mr. Samuele Renelli, P. Eng., Vice President,
Technical Services for Foran, is the Qualified Person for all
technical information in this news release regarding McIlvenna Bay
Phase 1 operations disclosures and has reviewed, verified and
approved the technical information in this news release.
Mr. Roger March, P. Geo., Principal Geoscientist
for Foran, is the Qualified Person for all technical information
herein regarding the Tesla Zone Exploration Target, including the
validity of all assay and geological information incorporated
herein, and has reviewed, verified and approved the technical
information in this news release.
Tesla drilling was completed using NQ size
diamond drill core and core was logged by employees of the Company.
During the logging process, mineralized intersections were marked
for sampling and given unique sample numbers. Sampled intervals
were sawn in half using a diamond blade saw. One half of the sawn
core was placed in a plastic bag with the sample tag and sealed,
while the second half was returned to the core box for storage on
site. Sample assays are performed by the Saskatchewan Research
Council (“SRC”) Geoanalytical Laboratory in Saskatoon,
Saskatchewan. SRC is a Canadian accredited laboratory (ISO/IEC
17025:2017) and independent of Foran. Analysis for Ag, Cu, Pb and
Zn is performed using ICP-OES after total multi-acid digestion. Au
analysis is completed by fire assay with ICP-OES finish and any
samples which return results greater than 1.0 g/t Au are re-run
using gravimetric finish. A complete suite of QA/QC reference
materials (standards, blanks, and duplicates) are included in each
batch of samples processed by the laboratory. The results of the
assaying of the QA/QC material included in each batch are tracked
to ensure the integrity of the assay data. No data quality problems
were indicated by the QAQC program, and the qualified person has
reviewed and approved all information included in the Exploration
Target estimates.
FOR ADDITIONAL INFORMATION & MEDIA
ENQUIRIES:
Foran:Jonathan French, CFAVP, Capital Markets
& External Affairs409 Granville Street, Suite 904Vancouver, BC,
Canada, V6C 1T2ir@foranmining.com+1 (604) 488-0008
About Foran Mining
Foran Mining is a copper-zinc-gold-silver
exploration and development company, committed to supporting a
greener future, empowering communities and creating circular
economies which create value for all our stakeholders, while also
safeguarding the environment. The McIlvenna Bay Project is located
entirely within the documented traditional territory of the Peter
Ballantyne Cree Nation, comprises the infrastructure and works
related to pre-development and advanced exploration activities of
the Company, and hosts the McIlvenna Bay Deposit and Tesla Zone.
The Company also owns the Bigstone Deposit, a resource-development
stage deposit located 25 km southwest of the McIlvenna Bay
Property.
The McIlvenna Bay Deposit is a
copper-zinc-gold-silver rich VHMS deposit intended to be the centre
of a new mining camp in a prolific district that has already been
producing for 100 years. The McIlvenna Bay Property sits just 65 km
West of Flin Flon, Manitoba, and is part of the world class Flin
Flon Greenstone Belt that extends from Snow Lake, Manitoba, through
Flin Flon to Foran’s ground in eastern Saskatchewan, a distance of
over 225 km.
The McIlvenna Bay Deposit is the largest
undeveloped VHMS deposit in the region. The Company announced the
results from its NI 43-101 compliant Technical Report on the 2022
Feasibility Study for the McIlvenna Bay Deposit on February 28,
2022, outlining that current Mineral Reserves would potentially
support an 18-year mine life producing an average of 65 million
pounds of copper equivalent annually. The Company filed the
Technical Report on April 14, 2022, with an effective date of
February 28, 2022. The Company also filed a NI 43-101 Technical
Report for the Bigstone Deposit resource estimate on January 21,
2021, as amended on February 1, 2022. Investors are encouraged to
consult the full text of these technical reports which may be found
on the Company’s profile on www.sedarplus.ca.
The Company’s head office is located at 409
Granville Street, Suite 904, Vancouver, BC, Canada, V6C 1T2. Common
Shares of the Company are listed for trading on the TSX under the
symbol “FOM” and on the OTCQX under the symbol “FMCXF”.
CAUTIONARY NOTE REGARDING FORWARD LOOKING
STATEMENTS
This news release contains certain
forward-looking information and forward-looking statements, as
defined under applicable securities laws (collectively referred to
herein as “forward-looking statements”). These statements relate to
future events or to the future performance of Foran Mining
Corporation and reflect management’s expectations and assumptions
as of the date hereof or as of the date of such forward looking
statement. All statements other than statements of historical fact
are forward-looking statements. Often, but not always,
forward-looking statements can be identified by the use of words
such as “plans”, “expects”, “is expected”, “budget”, “scheduled”,
“estimates”, “continues”, “forecasts”, “projects”, “predicts”,
“potentially”, “intends”, “likely”, “anticipates” or “believes”, or
variations of, or the negatives of, such words and phrases, or
state that certain actions, events or results “may”, “could”,
“would”, “should”, “might” or “will” be taken, occur or be
achieved. Such forward-looking statements include, but are not
limited to, statements relating to the terms, including pricing and
size, conditions and anticipated timing of definitive documentation
and completion of the Agnico Eagle investment, the Brokered
Offering and the Credit Facility Upsizing, including the use of
proceeds therefrom; statements regarding our objectives and our
strategies to achieve such objectives; our beliefs, plans,
estimates, projections and intentions, and similar statements
concerning anticipated future events; as well as specific
statements in respect of the Agnico Eagle private placement and
expected 9.9% proforma equity ownership on a basic voting basis
that Agnico Eagle will have in the Company; the entering into an
investor rights agreement between the Company and Agnico Eagle;
expectations regarding the technical committee our intention to
scale the McIlvenna Bay Project through evaluating exploration
results, leverage the current commodity price environment and focus
on maximizing risk-adjusted value per share; the expectation that
Fairfax and other existing shareholders will participate in the
Brokered Offering; our views regarding the strength of the Project
and of long-term shareholder support and confidence in same; upside
opportunities in respect of the Project; our view that Agnico
Eagle’s support emphasizes the quality and exploration potential of
the Project; our intention and ability to proceed with construction
of the Project; the Company’s commitment to driving long-term
shareholder value; our execution of an agency agreement in
connection with the Brokered Offering; expected approvals and
conditions by the TSX, including in respect of the Agnico Eagle
Investment and the Brokered Offering; expectations regarding the
upsizing of the Credit Facility from US$150 million to US$250
million, including Sprott’s completion of due diligence and
approval by Sprott’s investment committee; the expectation that
upsizing of the Credit Facility will provide greater financial
flexibility to the Company as it proceeds to full development of
the Project; eligibility of Phase 1 capital costs at the Project
for investment tax credits, and our expectation that such credits
could potentially apply to $440-510 million of expected costs
associated with the Phase 1 capital budget and lead to refundable
investment tax credits of approximately $130-150 million; the
expectation that additional upside to the investment tax credits
may be realized as sustaining capital is incurred in future periods
and growth capital is allocated to a potential Phase 2 project
expansion; our expectation that qualifying costs in respect of tax
credits will be claimed annually and received after filing of the
Company’s annual income tax return; the development and Phase 1
commissioning and production timelines and associated capital cost
estimates at the McIlvenna Bay Project, including our capital cost
estimate of US$604 million to commercial production and its
components; the initiation of initial production in Q4 2025 and of
commercial production in H1 2026; our commitment in respect of
plans for the potential future Phase 2 expansion opportunities at
the McIlvenna Bay Project, and our ability to lay the groundwork in
respect of same in our Phase 1 plans, including by modeling and
expediting field work to assess the estimated growth potential
identified in the Tesla Exploration Target tonnage and grade; our
plans, designs, optimizations, goals, and expectations in respect
of the Project, including in respect of Phase 1 construction,
including in respect of processing, grinding, final products, and
our ability to optimize the Project and maximize production; our
ability to ensure that planning for a potential Phase 2 expansion
is aligned with the Company’s long-term strategic goals; our plans
to increase Phase 1 throughput capacity to 4,900 tpd, and related
objectives and expected benefits thereof; the expectation that
construction of the hydropower transmission line will proceed
according to plan, will have sufficient capacity for future
potential load increases to enhance economies of scale in potential
future expansion phases, and will be completed and commissions
earlier than envisioned in the 2022 Feasibility Study; GMS’ track
record in respect of delivering major projects successfully on time
and on budget; the Company’s views regarding its capital allocation
decisions; our intention to increase lateral development during the
construction phase to open more work fronts for production, and the
expectation that this will benefit mine sequencing and production
ramp-up during commissioning; our goal of mitigating ramp-up risks
and optimize production start by conducting early onboarding of
team members, integrating additional capacities within the
grinding, filtration and paste circuits, and increasing the size of
the mobile underground fleet; our development timelines and
commercial production schedule; mechanical completion of the
grinding and processing circuit being completed in H2 2025 and hot
commissioning commencement in H2 2025; our target of stockpiling
ore of approximately 275,000 tonnes to support commissioning; our
ability to explore future opportunities to scale and maximize value
from McIlvenna Bay; our views, calculations and expectations in
respect of the Tesla Exploration Target, including in respect of
our estimates regarding its tonnage and grade range, and its
potential scale and upside for McIlvenna Bay; expansion potential
of the Tesla Zone, including potential expansion directions, and
its importance for potential future growth initiatives;
expectations regarding mineralization in the Tesla Zone and Bridge
Zone; our exploration plan’s current focus and objectives,
including in respect of the Company conducting additional drilling
at Tesla and expected results; and our commitment to a greener
future, empowering communities and creating circular economies
which create value for all stakeholders while safeguarding the
environment. The forward-looking statements in this news release
speak only as of the date of this news release or as of the date
specified in such statement.
Inherent in forward-looking statements are known
and unknown risks, estimates, assumptions, uncertainties and other
factors that may cause the actual results, performance or
achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
the forward-looking statements contained in this news release.
These factors include, but are not limited to, management's belief
or expectations relating to the following and, in certain cases,
management's response with regard to the following: the Company’s
reliance on the McIlvenna Bay Property; the certainty of funding,
including that the Agnico Eagle investment, the Brokered Offering
and the Credit Facility Upsizing will be completed on the terms and
conditions and in line with anticipated timing disclosed herein,
that all requisite regulatory approvals will be obtained and that
the proceeds from the financings will be applied as anticipated;
the Company’s statements about the expected productive capacity and
other technical estimates on its projects, and the Company’s
reliance on technical experts with respect thereto; government,
securities, and stock exchange regulation and policy, including
with respect to receiving TSX approval for the Project financing
including with respect to pricing of the Agnico Eagle investment
and Brokered Offering; the Company has a history of losses and may
not be able to generate sufficient revenue to be profitable or to
generate positive cash flow on a sustained basis; the Company is
exposed to risks related to mineral resources exploration and
development; failure to comply with covenants under the Senior
Credit Facility or the Equipment Finance Facility may have a
material adverse impact on the Company’s operations and financial
condition; the Company may require additional financing and future
share issuances may adversely impact share prices; the Company has
no history of mineral production; the Company is subject to
government regulation and failure to comply could have an adverse
effect on the Company’s operations; the Company may be involved in
legal proceedings which may have a material adverse impact on the
Company’s operations and financial condition; interest rates risk;
market and liquidity risk; the Company’s operations are subject to
extensive environmental, health and safety regulations; mining
operations involve hazards and risks; the Company may not be able
to acquire or maintain satisfactory mining title rights to its
property interests; indigenous peoples’ title claims may adversely
affect the Company’s ability to pursue exploration, development and
mining on the Company’s mineral properties; the Company may be
unable to obtain adequate insurance to cover risks; the Company’s
business may be impacted by international conflict; the Company’s
operations require the acquisition and maintenance of permits and
licenses, and strict regulatory requirements must be adhered to;
mineral resource and mineral reserve estimates are based on
interpretations and assumptions that may not be accurate;
uncertainties and risks relating to the 2022 Feasibility Study; the
current global financial conditions are volatile and may impact the
Company in various manners; metals prices are subject to wide
fluctuations; the Company may be involved in disputes related to
its contractual interests in certain properties; the mining
industry is highly competitive; the Company’s success is largely
dependent on management; the Company has a limited history of
operations; loss of key personnel could materially affect the
Company’s operations and financial condition; price volatility of
publicly traded securities may affect the market price of the
Common Shares; the Company’s operations may be adversely impacted
by the effects of climate change and climate change regulation;
risks related to wildfires and other extreme weather events;
security breaches of the Company’s information systems could
adversely affect the Company; inadequate infrastructure may affect
the Company’s operations; risks related to surface rights; the
Company may be subject to production risks; the Company has
incurred substantial losses and may never be profitable; the
Company has no history of paying dividends; and the additional
risks identified in our filings with Canadian securities regulators
on SEDAR+ in Canada (available at www.sedarplus.ca). Although the
Company has attempted to identify important factors that could
cause actual results to differ materially, there may be other
factors that cause results not to be as anticipated, estimated,
described or intended.
The forward-looking statements contained in this
press release reflect the Company’s current views with respect to
future events and are based upon a number of assumptions that,
while considered reasonable by the Company, are inherently subject
to significant operational, business, economic and regulatory
uncertainties and contingencies. These assumptions include: the
accuracy of mineral reserve and resource estimates and the
assumptions upon which they are based, including geotechnical and
metallurgical characteristics of rocks confirming to sampled
results and metallurgical performance; tonnage of ore to be mined
and processed; ore grades and recoveries; assumptions and discount
rates being appropriately applied to the technical studies; success
of the Company’s projects, including the McIlvenna Bay Project;
prices for zinc, copper, gold and silver remaining as estimated;
currency exchange rates remaining as estimated; availability of
funds for the Company’s projects; capital decommissioning and
reclamation estimates; prices for energy inputs, labour, materials,
supplies and services (including transportation); availability of
equipment; sustained labour stability with no labour-related
disruptions; that infrastructure anticipated to be developed,
operated or made available by third parties will be developed,
operated or made available as currently anticipated; no unplanned
delays or interruptions in scheduled construction and production;
all necessary permits, licenses and regulatory approvals are
received in a timely manner; and the ability to comply with
environmental, health and safety laws. The foregoing list of
assumptions is not exhaustive.
Readers are cautioned not to place undue
reliance on forward-looking statements and should note that the
assumptions and risk factors discussed in this press release are
not exhaustive. Actual results and developments are likely to
differ, and may differ materially, from those expressed or implied
by the forward-looking statements contained in this press release.
All forward-looking statements herein are qualified by this
cautionary statement. The Company disclaims any intention or
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as may be required by law. If the Company does update one or
more forward-looking statements, no inference should be drawn that
it will make additional updates with respect to those or other
forward-looking statements, unless required by law. Additional
information about these assumptions, risks and uncertainties is
contained in our filings with securities regulators.
Table 2 is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/ae736014-279a-4c2b-9d97-117e2ddd184a
Table 3 is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/f429860a-2061-442e-8174-8b26f39b219e
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/4ee8b4fe-c1a8-4318-88cc-b1c761205233
https://www.globenewswire.com/NewsRoom/AttachmentNg/6157e678-768e-4d41-bf04-b74758d2ca64
https://www.globenewswire.com/NewsRoom/AttachmentNg/047c1ee4-a8e5-4e59-9a50-8510e0b50b2a
https://www.globenewswire.com/NewsRoom/AttachmentNg/097a1a18-f880-4cdd-9922-d8a37715ba7b
https://www.globenewswire.com/NewsRoom/AttachmentNg/b2a0d3ff-161e-4fff-a0a8-bc709e1e0dc1
https://www.globenewswire.com/NewsRoom/AttachmentNg/c433dd80-b6e4-4409-bcc4-9b439d9a4f11
https://www.globenewswire.com/NewsRoom/AttachmentNg/18e4934d-d430-4e8d-9edc-502e3ee8e1f8
https://www.globenewswire.com/NewsRoom/AttachmentNg/b29e4ce8-14f2-4292-937f-64ab9fb5a4fa
https://www.globenewswire.com/NewsRoom/AttachmentNg/a7efd2bf-04de-4443-b933-22f0de3bea5a
https://www.globenewswire.com/NewsRoom/AttachmentNg/9d697eaf-76ca-481e-9273-85d1299b42ce
https://www.globenewswire.com/NewsRoom/AttachmentNg/ae919029-792f-480b-ba9f-11c2ea3da573
https://www.globenewswire.com/NewsRoom/AttachmentNg/375159e2-bbd2-4f85-83b8-3ef8ca5f1099
https://www.globenewswire.com/NewsRoom/AttachmentNg/58a27e4b-a902-428f-8761-88516d149eb1
https://www.globenewswire.com/NewsRoom/AttachmentNg/8339257d-95de-46a7-876a-72c0c9474d4e
Foran Mining (TSX:FOM)
過去 株価チャート
から 7 2024 まで 8 2024
Foran Mining (TSX:FOM)
過去 株価チャート
から 8 2023 まで 8 2024