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SERVICES OR DISSEMINATION IN THE
UNITED STATES/
VANCOUVER, BC, Jan. 11, 2021 /CNW/ - Foran Mining Corp.
(TSXV: FOM) ("Foran" or the "Company") is pleased to
announce that the Company has entered into an agreement with PI
Financial Corp. as sole bookrunner (the "Bookrunner"), with
Eight Capital and BMO Capital Markets (collectively the "Co-Lead
Agents"), on behalf of a syndicate of agents (collectively, the
"Agents"), in connection with a marketed best efforts
private placement of up to C$20.0
million (the "Offering").
The Offering will consist of (i) up to 7,693,000 common shares
(the "Shares") at a price of C$0.65 per Share (the "Offering Price")
for gross proceeds of up to C$5.0
million; and (ii) up to 16,394,000 flow-through common
shares (the "Flow-Through Shares") at a price of
C$0.915 per Flow-Through Share (the
"Flow-Through Offering Price") for gross proceeds of up to
C$15.0 million.
The Company will pay 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) (the "Qualifying Expenditures")
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 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. The Offering is
subject to the approval of the TSX Venture Exchange and customary
closing conditions.
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 or to U.S.
Persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such
registration is available.
About Foran Mining Corp.
Foran Mining is a copper-zinc-gold-silver exploration
and development company, and we are planning 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 trades on the TSX.V under the symbol "FOM".
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
This news release contains "forward-looking information" (also
referred to as "forward looking statements"), which relate to
future events or future performance and reflect management's
current expectations and assumptions. Often, but not always,
forward-looking statements can be identified by the use of words
such as "plans", "hopes", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates", or
"believes" or variations (including negative variations) of such
words and phrases, or state that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved. Such forward-looking statements reflect management's
current beliefs and are based on assumptions made by and
information currently available to the Company. All statements,
other than statements of historical fact, are forward-looking
statements or information. Forward-looking statements or
information in this news release relate to, among other things: our
ability to complete the offering on the terms announced or at all,
and receive the appropriate regulatory approvals, complete
the feasibility study in a timely manner, and the anticipated
capital and operating costs, sustaining costs, net present value,
internal rate of return, payback period, process capacity, average
annual metal production, average process recoveries, anticipated
mining and processing methods, proposed PFS production schedule and
metal production profile, anticipated construction period,
anticipated mine life, expected recoveries and grades, anticipated
production rates, infrastructure, social and environmental impact
studies, future financial or operating performance of the Company,
subsidiaries and its projects, estimation of mineral resources,
exploration results, opportunities for exploration, development and
expansion of the McIlvenna Bay Project, its potential
mineralization, the future price of metals, the realization of
mineral reserve estimates, costs and timing of future exploration,
the timing of the development of new deposits, requirements for
additional capital, foreign exchange risk, government regulation of
mining and exploration operations, environmental risks, reclamation
expenses, title disputes or claims, insurance coverage and
regulatory matters. In addition, these statements involve
assumptions made with regard to the Company's ability to develop
the McIlvenna Bay Project and to achieve the results outlined in
the PFS, and the ability to raise capital to fund construction and
development of the McIlvenna Bay Project.
These forward-looking statements and information 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. These assumptions include: our
mineral reserve and resource estimates and the assumptions upon
which they are based, including geotechnical and metallurgical
characteristics of rock confirming to sampled results and
metallurgical performance; tonnage of ore to be mined and
processed; ore grades and recoveries; assumptions and discount
rates being appropriately applied to the PFS; success of the
Company's projects, including the McIlvenna Bay Project; prices for
zinc, copper, gold and silver remaining as estimated; currency
exchange rates remaining as estimated; availability of funds for
the Company's projects; capital decommissioning and reclamation
estimates; mineral reserve and resource estimates and the
assumptions upon which they are based; prices for energy inputs,
labour, materials, supplies and services (including
transportation); no labour-related disruptions; no unplanned delays
or interruptions in scheduled construction and production; all
necessary permits, licenses and regulatory approvals are received
in a timely manner; and the ability to comply with environmental,
health and safety laws. The foregoing list of assumptions is not
exhaustive.
The Company cautions the reader that forward-looking statements
and information include known and unknown risks, uncertainties and
other factors that may cause actual results and developments to
differ materially from those expressed or implied by such
forward-looking statements or information contained in this news
release and the Company has made assumptions and estimates based on
or related to many of these factors. Such factors include, without
limitation: the projected and actual effects of the COVID-19
coronavirus on the factors relevant to the business of the
Corporation, including the effect on supply chains, labour market,
currency and commodity prices and global and Canadian capital
markets, fluctuations in zinc, copper, gold and silver prices;
fluctuations in prices for energy inputs, labour, materials,
supplies and services (including transportation); fluctuations in
currency markets (such as the Canadian dollar versus the U.S.
dollar); operational risks and hazards inherent with the business
of mining (including environmental accidents and hazards,
industrial accidents, equipment breakdown, unusual or unexpected
geological or structure formations, cave-ins, flooding and severe
weather); inadequate insurance, or the inability to obtain
insurance, to cover these risks and hazards; our ability to obtain
all necessary permits, licenses and regulatory approvals in a
timely manner; changes in laws, regulations and government
practices in Canada, including
environmental, export and import laws and regulations; legal
restrictions relating to mining; risks relating to expropriation;
increased competition in the mining industry for equipment and
qualified personnel; the availability of additional capital; title
matters and the additional risks identified in our filings with
Canadian securities regulators on SEDAR in Canada (available at www.sedar.com). 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. Investors are cautioned against undue
reliance on forward-looking statements or information.
These forward-looking statements are made as of the date hereof
and, except as required by applicable securities regulations, the
Company does not intend, and does not assume any obligation, to
update the forward-looking information.
SOURCE Foran Mining Corporation