Foran announces proposed investment of up to C$200M from Ontario Teachers’ Pension Plan Board
(Kitco News) - Foran Mining (TSX.V: FOM) announced today it has entered into a non-binding term sheet with Ontario Teachers' Pension Plan Board, which contemplates a transaction that, if completed, would have Ontario Teachers' invest up to C$200M in the McIlvenna Bay project.
According to the company's statement, the proceeds of the proposed investment, together with proceeds from an anticipated senior secured credit facility, will be used for the development of the McIlvenna Bay project towards commercial production.
The company said that the parties are now under exclusivity and intend to enter into definitive documentation in Q3 2022, adding that the proposed investment remains subject to, among other things, ongoing due diligence by Ontario Teachers' and Foran securing a senior secured credit facility.
"It is anticipated that closing of the proposed investment will be subject to, among other things, TSX Venture Exchange approval, Foran obtaining a binding commitment for a senior secured credit facility to further advance the project, execution of joint operating and governance agreements, as well as other conditions customary for a transaction of this nature," the company said in a press-release.
Foran Mining is a copper-zinc-gold-silver exploration and development company. The company's McIlvenna Bay project is located entirely within the documented traditional territory of the Peter Ballantyne Cree Nation. The company also owns the Bigstone project, a resource-development stage deposit located 25km southwest of its McIlvenna Bay project.
McIlvenna Bay is a copper-zinc-gold-silver rich VHMS deposit intended to be the centre of a new mining camp in a prolific district that has already been producing for 100 years. McIlvenna Bay sits 65km West of Flin Flon, Manitoba. McIlvenna Bay is the largest undeveloped VHMS deposit in the region, the company said.
Foran announced the results from its Feasibility Study on February 28, 2022, outlining that current mineral reserves would potentially support an 18-year mine life producing an average of 65 million pounds of copper equivalent annually.
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