Uncategorized
Share this news article...
Share on LinkedIn
Linkedin
Share on Facebook
Facebook
Tweet about this on Twitter
Twitter
Share on Google+
Google+
Email this to someone
email

Foran Mining Completes $9.4 Million Private Placement

 

 

 

 

 

Foran Mining Corporation (TSX-V:FOM) is pleased to announce that it has completed the second and final tranche of its non-brokered private placement. The final tranche consisted of the Company issuing 4,527,500 common shares on a flow-through basis at a price of $0.66 per FT Share for gross proceeds of $2,988,150, bringing the total of the two tranches to $9,381,642.  In total, the Company issued 6,276,500 FT Shares for gross proceeds of $4,142,490 and 10,914,900 common shares on a non-flow through basis at a price of $0.48 per NFT Share for gross proceeds of $5,239,152.

 

 

Patrick Soares, President & CEO of Foran commented, “We are delighted that investors continue to have confidence in McIlvenna Bay, as demonstrated by the significant oversubscription to this latest financing. Foran’s management team understands the importance of prudent capital allocation and, as large shareholders in the Company, are committed to responsible fiscal management for the benefit of all shareholders. This latest round of funding will support critical work required to complete the feasibility study, the next step in order to consider a production decision for McIlvenna Bay.”

 

 

A total of 1,500,000 FT Shares, representing gross proceeds of $990,000, were acquired by an insider of Foran.  The Insider Purchase constitutes a ‘related party transaction’ under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. The Offering was approved by all of the directors of the Company, none of whom has an interest in the Insider Purchase matter. The Insider Purchase is exempt from the valuation and minority approval requirements of MI 61-101 on the basis that no securities of the Company are listed or quoted on any specified markets, namely the Toronto Stock Exchange, the New York Stock Exchange, the American Stock Exchange, the NASDAQ Stock Market, or a stock exchange outside of Canada and the United States other than the Alternative Investment Market of the London Stock Exchange or the PLUS market operated by PLUS Markets Group plc, and at the time the Offering was agreed to, neither the fair market value of the Shares nor the consideration to be received for those Shares, insofar as the Offering involved interested parties, exceeded $2,500,000.

 

 

The Offering is subject to final TSX-V approval and all securities issued pursuant to the Offering are subject to a statutory four month and one day hold period from the date of issuance. In total, finders earned fees totaling $210,000 from both tranches.

 

 

The gross proceeds from the issuance of FT Shares will be used to incur Canadian Exploration Expenses (within the meaning of the Income Tax Act (Canada)). The Company will use its best effort to ensure that such CEE qualifies as a “flow-through mining expenditure” for the purposes of the Income Tax Act (Canada), related to the exploration of the Company’s landholdings in east-central Saskatchewan. The Company will renounce such CEE with an effective date of no later than December 31, 2018 with Canadian exploration expenses to be incurred prior to December 31, 2019.

 

 

About Foran Mining

 

 

Foran is a zinc-copper exploration and development company with projects located along the Flin Flon Greenstone Belt. The McIlvenna Bay Project, Foran’s flagship asset located within the Hanson Lake District, is part of this world class VMS belt that extends from Snow Lake, Manitoba, through Flin Flon to Foran’s ground in eastern Saskatchewan, a distance of over 225 kilometres. McIlvenna Bay is one of the largest undeveloped VMS deposits in Canada. The Company is currently conducting a resource definition and infill drilling program in preparation for producing a feasibility study on the McIlvenna Bay deposit.

 

 

On December 4, 2017, Foran announced the execution of a Technical Services Agreement with Glencore Canada Corporation. Glencore has agreed to provide technical expertise and advice in order to advance the McIlvenna Bay deposit to feasibility in exchange for an off-take agreement on the metals and minerals produced from the deposit.

 

 

On November 12, 2014, Foran announced a positive preliminary economic assessment for McIlvenna Bay, with an estimated pretax net present value (discounted at 7 per cent) of $382-million ($263-million after tax) and an internal rate of return of 22 per cent (19 per cent after tax) at a zinc price of US$1.06 per pound (“lb”). Spot Zinc price today is US$1.38/lb. See below and Foran’s news releases from November 12 and December 22, 2014 for important disclosures with respect to the McIlvenna Bay PEA.

 

 

The PEA is considered preliminary in nature and includes mineral resources, including inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves have not yet demonstrated economic viability. Due to the uncertainty that may be attached to mineral resources, it cannot be assumed that all or any part of a mineral resource will be upgraded to mineral reserves. Therefore, there is no certainty that the results concluded in the PEA will be realized.

 

Posted July 7, 2018

Share this news article...
Share on LinkedIn
Linkedin
Share on Facebook
Facebook
Tweet about this on Twitter
Twitter
Share on Google+
Google+
Email this to someone
email

MORE or "UNCATEGORIZED"


Juggernaut Arranges $2,277,989 Financing

Juggernaut Exploration Ltd. (TSX-V: JUGR) (Frankfurt:4JE)&n... READ MORE

December 12, 2018

Power Ore Announces Transformational Acquisition of the Falconbridge Opemiska Copper Mine Complex in Quebec

Power Ore Inc. (TSX-V: PORE) is pleased to announce that it has e... READ MORE

December 12, 2018

Prize Mining reports results from Kena Gold Project 2018 drilling program that includes intersects of 4.37g/t Au over 6.00 metres and 14.3 g/t Au over 0.84 metres and provides corporate update

PRIZE MINING CORPORATION (TSX-V:PRZ) (OTCQB:PRZFF) (MQSP:GR... READ MORE

December 12, 2018

Minera Alamos Announces $2 Million of Early Funding Under Its Royalty Facility with Osisko Gold Royalties for the La Fortuna Gold Project, Durango, Mexico

Minera Alamos Inc. (TSX-V: MAI) is pleased to announce it has obt... READ MORE

December 12, 2018

American Lithium Confirms Historic Claystone Grades at North End of Nevada FLV Project

American Lithium Corp. (TSXV: LI) (OTCQB: LIACF) (FSE: 5LA) has r... READ MORE

December 12, 2018

Copyright 2018 The Prospector News - Site design by Spyderbaby Productions