03:31 PM EDT, 07/15/2024 (MT Newswires) -- Foran Mining Corporation ( FMCXF ) was at last look up near 9% after announcing earlier Monday 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 ( FRFHF ) , and an equity private placement by Agnico Eagle Mines Limited ( AEM ) .

The company also announced that a term sheet has been signed with a fund managed by Sprott Resource Lending Corp. (SII.TO) 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.

Foran in a statement said the strategic investments "underscore the strength of the company's 100%-owned McIlvenna Bay Project in Saskatchewan, and demonstrate robust, long-term shareholder backing". It added: "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.

Among key highlights: Foran cited a $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."

Foran noted 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; And it noted an 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.

Of other highlights, Foran noted Phase 1 capital budget is expected to be eligible for Federal Investment Tax Credits, potentially leading to refundable investment tax credits of approximately $130-150 million; the Phase 1 Capital Cost is 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

And on Phase 2 Expansion Planning, Foran is evaluating a phased expansion approach, leveraging recent exploration discoveries at the Tesla and Bridge Zones. The company said it has initiated modeling and expedited the necessary fieldwork to assess the estimated growth potential identified in the Tesla Exploration Target

Foran cited an 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). It said 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, it added.

Dan Myerson, Foran's Executive Chairman & CEO, in Monday's statement said: "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."

Price: 103.28, Change: +0.88, Percent Change: +0.86