VANCOUVER, BC, Dec. 21,
2022 /CNW/ - Foran Mining Corporation (TSXV: FOM)
(OTCQX: FMCXF) ("Foran" or the "Company") is pleased to announce
the closing of a US$150 million
senior secured project credit facility (the "Credit Facility") with
a fund managed by Sprott Resource Lending Corp. ("Sprott"). Funds
from the Credit Facility will be used towards construction of the
McIlvenna Bay project in east-central Saskatchewan as well as general corporate
purposes.
Dan Myerson, Foran's Executive
Chairman & CEO, commented, "Over the past 18 months, we have
been meticulously evaluating various financing proposals from
numerous lenders to support the development of McIlvenna Bay.
Securing project finance is a very significant milestone for the
Company, and we believe this agreement maximizes risk-adjusted
value per share for existing shareholders. The transaction with
Sprott announced this morning provides us with the flexibility to
continue our three-pronged strategy at an attractive cost of
capital as we set out to advance McIlvenna Bay to full
construction. We are very grateful for Sprott's partnership and the
support towards our vision of building Canada's next great critical metals mining
district."
Narinder Nagra, Managing Partner
of Sprott, commented, "As one of the largest investors and
lenders dedicated to the natural resource sector, Sprott is excited
to partner with Foran's experienced and accomplished management
team. Our financing of Foran is consistent with our strategy to
provide innovative and flexible capital to maximize the value of
exceptional projects, which McIlvenna Bay is, and support
world-class management teams. We look forward to partnering with
Foran on its destination to become a premier critical metals
producer."
Credit Facility Details
- The Credit Facility consists of a US$150
million non-revolving project credit facility with a
maturity date of September 30, 2030.
The Credit Facility has no requirements for hedging, cash sweeps,
standby charges, production-linked payments, issuance of shares, or
issuance of warrants.
- Foran has received an initial advance of US$29.5 million. Subsequent advances are
available to the Company upon the satisfaction of customary
conditions precedent.
- Interest shall accrue at a floating rate equal to 6.95% per
annum plus the greater of SOFR and 2.00% per annum. Interest is
payable quarterly, and 100% of interest costs may be capitalized
until the end of the availability period.
- Principal repayments will commence on June 30, 2026, and Foran shall pay to Sprott
equal repayments of the principal amount of the Credit Facility,
including capitalized interest and other costs, in an amount equal
to 4.0% of the outstanding principal amount of the Credit Facility
on a quarterly basis. The remainder of the scheduled principal
payments are due upon maturity.
Ontario Teachers' Pension Plan
Transaction Update
Following the closing of the Credit Facility, definitive
documentation for the Ontario Teachers' Pension Plan Board's
("Ontario Teachers'") proposed Investment up to C$200M can now be completed and is expected to
close in due course (please see our August
8, 2022 Press Release). The initial advance under the
Ontario Teachers' investment is expected to occur on a pro-rata
basis concurrent with the second tranche under the Credit Facility,
subject to the satisfaction of substantially similar conditions
precedent.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
The Company's head office is located at 409 Granville Street,
Suite 904, Vancouver, BC,
Canada, V6C 1T2, and Common Shares
of the Company are listed for trading on the TSXV under the symbol
"FOM".
About Foran Mining
Foran Mining is a copper-zinc-gold-silver exploration and
development company, committed to supporting a greener future,
empowering communities and creating circular economies which create
value for all our stakeholders, while also safeguarding the
environment. The 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 just 65km 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 225km.
McIlvenna Bay is the largest undeveloped VHMS deposit in the
region. The Company 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. The Company filed a NI 43-101 Technical Report
for the McIlvenna Bay Feasibility Study on April 14, 2022. The Company filed a NI 43-101
Technical Report for the Bigstone Deposit resource estimate on
February 11, 2022. Investors are
encouraged to consult the full text of these technical reports
which may be found on the Company's profile on www.sedar.com.
Foran trades on the TSX.V under the symbol "FOM" and on the
OTCQX under the symbol "FMCXF".
About Sprott
Sprott is an alternative asset manager and global leader in
mining and real asset investments. Through its subsidiaries in
Canada, the US and Asia, Sprott is dedicated to providing
investors with best in-class investment strategies that include
Exchange Listed Products, Alternative Asset Management and Private
Resource Investments. The Corporation also operates Merchant
Banking and Brokerage business in both Canada and the US. Sprott is based in
Toronto with offices in
New York, Carlsbad, and
Vancouver and the shares of its
parent company, Sprott Inc., are listed on the Toronto Stock
Exchange under the symbol (TSX: SII).
Forward Looking
Statements
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
This news release contains certain forward-looking information
and forward-looking statements, as defined under applicable
securities laws (collectively referred to herein as
"forward-looking statements"). These statements relate to future
events or to the future performance of Foran Mining Corporation
(the "Company") and reflect management's expectations and
assumptions as of the date hereof or as of the date of such forward
looking statement. Forward looking statements contained in this
press release include (but are not limited to) statements with
respect to the proposed use of proceeds from the Credit Facility,
the positive impact of the agreement on the risk adjusted value per
share and details of the proposed strategic investment by Ontario
Teachers' Pension Plan including the proposed amount and the timing
of the initial advance.
All statements other than statements of historical fact are
forward-looking statements. Often, but not always, forward-looking
statements can be identified by the use of words such as "plans",
"expects", "is expected", "budget", "scheduled", "estimates",
"continues", "forecasts", "projects", "predicts", "potentially",
"intends", "likely", "anticipates" or "believes", or variations of,
or the negatives of, such words and phrases, or state that certain
actions, events or results "may", "could", "would", "should",
"might" or "will" be taken, occur or be achieved. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results to differ materially from
those anticipated in such forward-looking statements. The
forward-looking statements in this news release speak only as of
the date of this news release or as of the date specified in such
statement.
Inherent in forward-looking statements are known and unknown
risks, estimates, assumptions, uncertainties and other factors that
may cause the actual results, performance or achievements of the
Company to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements contained in this news release. Such
risks and uncertainties include, but are not limited to, the
factors discussed under "Risk Factors" in the Company's Annual
Information Form dated June 8, 2022
and other securities filings with Canadian securities regulators
available at www.sedar.com.
The forward-looking statements contained in this news release
reflect the Company's current views with respect to future events
and are necessarily based upon a number of assumptions that, while
considered reasonable by the Company, are inherently subject to
significant operational, business, economic and regulatory
uncertainties and contingencies. Although the Company has attempted
to identify important factors that could cause actual results to
differ materially, there may be other factors that cause results
not to be as anticipated, estimated, described or intended. Readers
are cautioned against undue reliance on forward-looking statements
and should note that the assumptions and risk factors discussed
above do not contain an exhaustive list of the factors or
assumptions that may affect the forward-looking statements, and
that the assumptions underlying such statements may prove to be
incorrect. Actual results and developments are likely to differ,
and may differ materially, from those expressed or implied by the
forward-looking statements contained in the Company's securities
filings and this news release. All forward-looking statements
herein are qualified by this cautionary statement. The Company
undertakes no obligation to update publicly or otherwise revise any
forward-looking statements whether as a result of new information
or future events or otherwise, except as may be required by
law.
SOURCE Foran Mining Corporation