Foran Mining launches $200M private placement

Foran Mining (TSX: FOM; US-OTC: FMCXF) plans to raise $200 million through a private placement to support the exploration and development of its projects in Saskatchewan.

The offering includes up to 46.35 million common shares of Foran priced at $4.10 each, totaling $190 million, and 1.56 million flow-through at $6.40 each will also be offered, making up the remaining $10 million.

BMO Capital Markets will act as the sole bookrunner and, together with Eight Capital and National Bank Financial, as the co-lead agent.

Foran’s main asset is the McIlvenna Bay project located in the Flin Flon greenstone belt that extends from Snow Lake, Man., through Flin Flon to Foran’s ground in eastern Saskatchewan, for a distance of over 225 km.

It hosts the largest undeveloped VMS (volcanogenic massive sulphide) deposit in the region, with indicated resources of 39 million tonnes grading 1.20% copper, 2.16% zinc, 0.41 grams gold per tonne and 14 grams silver.

A feasibility study in early 2022 outlined that the mineral reserves at McIlvenna Bay would potentially support an 18-year mine life producing an average of 65 million lb. of copper-equivalent annually.

In summer 2023, a critical milestone was reached ahead of full development at McIlvenna Bay after Foran completed the environmental impact assessment process for the project. The company also secured a $200-million investment by the Ontario Teachers’ Pension Plan Board.

The latest financing adds another $200 million to Foran’s capital raising this year to fund the initial development costs of McIlvenna Bay, which is estimated at $368 million.

In addition to McIlvenna Bay, Foran also holds the Bigstone project, a resource-development stage deposit located 25 km to the southwest.

Foran shares traded at $4.11 at mid-day in Toronto on Monday, valuing the company at $1 billion. Its shares traded in a 52-week range of $2.78 and $4.56.