Foran Mining Corporation (TSX-V: FOM) is pleased to announce the closing of its previously announced marketed best efforts private placement, which was upsized from C$20.0 million to C$25.0 million, due to significant demand which resulted in the initial Offering being four times over-subscribed.
Dan Myerson, Executive Chairman of Foran commented,
“We are very grateful to our investors for their strong support and look forward to creating exponential value for all stakeholders as we pursue our vision to enable a greener future and build the world’s first zero carbon copper mine on the back of our exceptionally mineral-rich deposits and camp, in the emerging Hanson Lake mining district.
The upsized financing will enable us to accelerate our exploration work at our neighboring deposits, and demonstrate the increased economic potential of our camp. Thank you again to our supportive investors, we look forward to the amazing journey ahead together.”
The Offering was comprised of (i) 11,539,000 common shares at a price of C$0.65 per Share for gross proceeds of C$7.5 million; and (ii) 19,126,000 flow-through common shares at a price of C$0.915 per Flow-Through Share for gross proceeds of C$17.5 million. The Offering is subject to the final approval of the TSX Venture Exchange.
The Offering was led by PI Financial Corp. as sole bookrunner, and Eight Capital and BMO Capital Markets, together with Canaccord Genuity Corp. and Stifel Nicolaus Canada Inc.
The Company paid a cash commission of 6.0% of the gross proceeds of the Offering, other than in respect of certain purchasers on a President’s List.
The gross proceeds from the sale of Flow-Through Shares will be used by the Company to incur eligible “Canadian exploration expenses” that will qualify as “flow-through mining expenditures” as such terms are defined in the Income Tax Act (Canada) related to the Company’s projects in Canada. All Qualifying Expenditures will be renounced in favour of the subscribers of the Flow-Through Shares effective on or before December 31, 2021. The net proceeds from the sale of the Shares will be used by the Company for work towards completing a definitive feasibility study, working capital and general corporate purposes.
In connection with the Offering, Pierre Lassonde, who prior to the closing of the Offering held beneficial control over more than 10% of the issued and outstanding common shares of the Company has acquired 547,000 Flow-Through Shares. This issuance of Flow-Through Shares to the Insider is considered a “related party transaction” as such term is defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. The Company is relying on exemptions from the formal valuation and minority shareholder approval requirements provided under MI 61-101 on the basis that participation in the Offering by the Insider does not exceed 25% of the fair market value of the Company’s market capitalization.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“) or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Foran Mining Corporation
Foran Mining is a copper-zinc-gold-silver exploration and development company, and we are committed to supporting a greener future and creating maximum value for all stakeholders – creating safe jobs, supporting local communities as well as both preserving and enhancing the environment. Our goal is to build the first mine in Canada designed to be carbon neutral from day one. We are in the feasibility stage of development for our flagship McIlvenna Bay project in eastern Saskatchewan. McIlvenna Bay is a copper-zinc-gold-silver rich VMS deposit intended to be the center of a new mining camp in a prolific district that has already been producing for 100 years. McIlvenna Bay sits just 65km from 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 225km.
McIlvenna Bay is the largest undeveloped VMS deposit in the region. The Company filed a NI 43-101 Technical Report for the PFS on the McIlvenna Bay Deposit on SEDAR on April 28, 2020. Foran’s copper-zinc VMS Bigstone Deposit is expected to serve as additional feed for the mill at McIlvenna Bay. The Company filed a NI 43-101 Technical Report for the Bigstone Deposit’s first resource estimate on January 21, 2021.
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