Foran Mining Corporation (TSX: FOM) (OTCQX: FMCXF) is pleased to announce it has been approved to earn up to $70 million in transferable royalty tax credits through the Government of Saskatchewan’s Critical Minerals Processing Investment Incentive, administered by the Ministry of Energy and Resources.

Premier of Saskatchewan Scott Moe Alongside Several Cabinet Ministers at the McIlvenna Bay Project in September 2023 (CNW Group/Foran Mining Corporation)

Launched on August 8, 2024 as part of Saskatchewan’s Critical Minerals Strategy, the CMPII is one of two new government programs aimed at increasing provincial production supporting 11 designated critical minerals, including copper and zinc. Modelled after existing oil and gas programs, CMPII provides potentially transferrable Crown royalty and freehold production tax credits that can be used to offset the Company’s obligations under Saskatchewan’s Mineral Crown Royalty.

“Our government is proud to support companies like Foran who are helping us make progress towards our goals in Saskatchewan’sCritical Minerals Strategy,” said Minister of Energy and Resources Colleen Young. “Programs like the Critical Minerals Processing Investment Incentive have been successful in showing industry partners that Saskatchewan is the best place in the world for mining investment. We are thankful to Foran for their continued confidence in Saskatchewan, their McIlvenna Bay Project is creating long term jobs in the north and strong economic growth for all of Saskatchewan.”

James Steels, Foran’s Chief Financial Officer, commented, “The CMPII program is a tangible example of Foran pursuing innovative initiatives to optimize our financial position, support future deleveraging and deliver value to stakeholders. We are grateful for the Government of Saskatchewan’s continued support of the McIlvenna Bay Project, and this innovative program is a strong example of the province’s commitment to responsible resource development that underpins Saskatchewan as Canada’s leading jurisdiction for mining investment.”

Program Details

Under the program, eligible projects may earn Royalty Credits equivalent to 15% of specifically recognized project costs incurred up to a defined date. Foran’s McIlvenna Bay Project is eligible for up to $70 million in Royalty Credits, which can either be applied to offset future payments due under Saskatchewan’s Mineral Crown Royalty Tax or potentially monetized through transfer and sale to third parties using the Province’s Integrated Resource Information System (IRIS). As new base metal mines in Saskatchewan are granted a 10-year holiday from the Mineral Crown Royalty Tax, the ability to monetize the earned credits provides a unique  opportunity to realize value well in advance of future tax payments.

Once a project reaches completion, Royalty Credits are calculated based on incurred eligible costs and earned over a three-year period: (20% in Year 1, 30% in Year 2, and 50% in Year 3). With McIlvenna Bay on track for commercial production in mid-2026, Foran expects to begin earning credits in 2027. As credits are earned, the Company will assess whether applying them against future provincial mineral taxes payable or pursuing secondary market sales delivers the greatest value and will provide updates as utilization or monetization occurs. Any proceeds from monetization could support balance sheet deleveraging in the early years of the mine life and provide additional capital for future growth initiatives at McIlvenna Bay.

About Foran Mining

Foran Mining is a copper-zinc-gold-silver exploration and development Company, committed to supporting a greener future and empowering communities while creating value for our stakeholders.  The McIlvenna Bay project is located within the documented traditional territory of the Peter Ballantyne Cree Nation, comprises the infrastructure and works related to development and advanced exploration activities of the Company, and hosts the McIlvenna Bay Deposit and Tesla Zone.

The McIlvenna Bay Deposit is a copper-zinc-gold-silver rich deposit intended to be the centre of a new mining camp in a prolific district that has already been producing for 100 years. The McIlvenna Bay Property sits just 65 km West of Flin Flon, Manitoba, and is part of the world class Flin Flon Greenstone Belt that extends from Snow Lake, Manitoba, through Flin Flon to Foran’s ground in eastern Saskatchewan, a distance of over 225 km.

The Company filed its NI 43-101 compliant 2025 Technical Report on the McIlvenna Bay Project, Saskatchewan, Canada on March 12, 2025, with an effective date and report date of March 12, 2025, outlining a mineral resource in respect of the McIlvenna Bay Deposit estimated at 38.6 Mt grading 2.02% CuEq in the Indicated category and an additional 4.5 Mt grading 1.71% CuEq in the Inferred category. Investors are encouraged to consult the full text of the 2025 Technical Report which is available on SEDAR+ at www.sedarplus.ca under the Company’s profile. The Company’s head office is located at 409 Granville Street, Suite 904, Vancouver, BC, Canada, V6C 1T2. Common Shares of the Company are listed for trading on the TSX under the symbol “FOM” and on the OTCQX under the symbol “FMCXF”.