Foran Mining is planning to open up a brokered private placement that company representatives hope will raise a whopping $200 million.
The company, which owns and operates the McIlvenna Bay mine project and property about 80 kilometres away from Flin Flon, is planning to raise money through a sale of company shares to finance moving the project forward and possibly bringing a mine into production.
Foran has teamed up with Montreal-based BMO Capital Markets to co-lead the sale, along with investment dealing firm Eight Capital and National Bank Financial. To raise the money, the Foran plan will see 46,350,000 common shares of the company put on sale for $4.10 per share - if all are sold at that price, the sale would raise just over $190 million for Foran. A second sale will see 1.563 million more shares issued as flow-through shares at $6.40 per share, raising another $10 million if all are sold at that price.
“The net proceeds of the offering will be used for exploration and development of the company’s mineral projects in Saskatchewan and for working capital and general corporate purposes,” reads a statement issued by Foran Nov. 27.
The placement is expected to close Dec. 12 or when all shares are sold - whichever comes first - and when all regulatory approvals and agreements are reached.
The McIlvenna Bay project, according to a Foran feasibility study released last year, is forecast to have around an 18-year mine life if moved forward into production. The company has also announced intentions to make McIlvenna Bay the world’s first carbon neutral copper mine, purchasing electric vehicles and equipment, recording emissions and purchasing carbon offsets.
The company signed a formal agreement with the chief and council of Peter Ballantyne Cree Nation (PBCN) earlier this year and received provincial approval of the project in July to build and open a mine at the site. Foran is continuing to fund construction and exploration around the site to determine whether or not there are other potentially minable deposits around the McIlvenna Bay site.
Between initial and sustaining capital costs, the total price tag to start a mine at McIlvenna Bay has been put at just shy of $850 million by Foran. The company has received several financial contributions over the years, including a substantial buy-in from the Ontario Teacher’s Pension Fund and other capital sources.
