07:09 AM EDT, 10/02/2024 (MT Newswires) -- Foran Mining ( FMCXF ) on Wednesday said it has closed an upsized US$250 million senior secured project credit facility with a fund managed by Sprott Resource Lending.

The non-revolving facility has a maturity date of Sept. 30, 2031. The credit facility amends and restates the company's original US$150 million senior secured project finance credit facility.

Upon closing, Foran received a second advance of US$28 million from Tranche A of the credit facility, bringing total advances to date under that tranche to US$57.5 million.

Gross proceeds of about US$100 million have also been advanced into a debt proceeds account (DPA) under Tranche B. Funds advanced to the DPA will accumulate interest immediately and proceeds will be released upon satisfaction of certain conditions.

The company will be able to draw against the credit facility until the end of the availability period on March 31, 2026.

Funds from the credit facility will be used for the construction of the McIlvenna Bay project in Saskatchewan, as well as for general corporate purposes.

"Partnering with Sprott on this expanded credit facility highlights the robust nature of the McIlvenna Bay project and the critical need for new greenfield sources of essential minerals," said Foran CFO James Steels.