Finance > Capital-markets

Foran raises C$5m to advance McIlvenna Bay

Vancouver-based Foran Mining Corp (TSXV: FOM) has taken advantage of recent strengthening in its share price to raise C$5 million via a non-brokered placement to fund winter drilling at the McIlvenna Bay zinc-copper project in east-central Saskatchewan.

Staff reporter

Finance > Capital-markets

Foran raises C$5m to advance McIlvenna Bay

Vancouver-based Foran Mining Corp (TSXV: FOM) has taken advantage of recent strengthening in its share price to raise C$5 million via a non-brokered placement to fund winter drilling at the McIlvenna Bay zinc-copper project in east-central Saskatchewan.

Staff reporter

Foran raises C$5m to advance McIlvenna Bay

Foran Mining Corp expects to start winter drilling at McIlvenna Bay next month

The company, which last week announced a technical services arrangement with Glencore to advance its feasibility study on McIlvenna Bay, is issuing 10.2 million shares at C49c - a handy premium to its last trading price of 40c.

Foran's share price has kicked about 60% since July, giving it a market value this week of about $40 million.

A late 2014 PEA for McIlvenna Bay had a C$400 million mine development (life-of-mine capex) generating a 19% after-tax IRR and $263 million after-tax NPV on a circa-14 year operation producing 27,000tpa of zinc, 17,000tpa of copper, plus lead (544tpa), gold (16,000ozpa) and silver (398,000ozpa). That was using a zinc price 40% the current.

Foran president and CEO Patrick Soares said the company wanted to start drilling at Hanson Lake next month. The work will include exploration drilling at the Target A geophysical anomaly, south-west of the main McIlvenna Bay deposit, which Soares has described as a "potential game changer", "and other high priority targets" in the area.

Foran owns 100% of McIlvenna Bay and other VMS zinc-copper targets such as Bigstone around Hanson Lake.

 

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