Foran Mining (TSX: FOM; OTCQX: FMCXF) has upsized the private placements it announced on July 15 to as much as $360 million. The net proceeds will be used primarily for the company’s projects in Saskatchewan. Chief among these are the McIlvenna Bay copper and Bigstone copper-zinc projects.
The company amended its agreement with Eight Capital, BMO Capital Markets, and National Bank financial to approximately $260.9 million from $222 million. The offer now includes about 47 million common shares priced at $4.05 each. A total of 4.5 million flow-through shares will also be issued at a price of $6.88 each and 1.6 million shares at a price of $6.27 each. The flow-through shares will raise a further $30 million.
Foran also announced its intention to amend the existing subscription agreement with Agnico Eagle Mines (TSX: AEM; NYSE: AEM). Agnico will acquire up to 24.5 million common shares, rather than the lesser amount of 23.0 million, making its total contribution to the placement $99 million, not $93 million. The revised subscription will also Agnico to maintain its 9.9% interest in Foran.
The proposed larger common share offerings will result in issuing a number of shares greater than 25% of the company’s current issued and outstanding shares. It will, therefore, require shareholder approval as well as that from the Toronto Stock Exchange.
The feasibility study for the 100%=owned McIlvenna Bay copper project, about 375 km northeast of Saskatoon, outlined a 4,200-t/d underground mine, on-site crushing and mineral processing facilities, paste backfill plant, filtered tailings management, and ancillary facilities. The mill will feature semi-autogenous grinding (SAG), ball milling, and flotation circuits to produce both copper and zinc concentrates.
The resource estimate filed in April 2022 contains an indicated resource of 39.1 million tonnes grading 1.20% copper, 2.16% zinc, plus zinc and precious metals (2.04% copper equivalent. The indicated portion contains 1.0 billion lb. copper and 1.9 billion lb. zinc.
The inferred McIlvenna Bay estimate is 5 million tonnes grading 0.94% copper, 0.17% zinc, plus lead and precious metals (2.57% copper equivalent). This category contains 104.8 million lb. copper and 284.1 million lb. zinc.
About 25 km west of McIlvenna Bay is the highly prospective Bigstone project. Foran has 100% ownership, but some of the claims are subject to a 2% net smelter royalty. The Bigstone deposit has an indicated resource of about 2 million tonnes grading 1.88% copper, 0.92% zinc, plus precious metals, containing about 81.9 million lb. copper and 40.2 million lb. zinc. The inferred portion is another 2 million tonnes grading 1.35% copper and 2.75% zinc, plus precious metals, containing 55.9 million lb. copper and 114.4 million lb. zinc.
Details of Foran’s active projects are available on www.ForanMining.com.
