Unlocking Additional Low-Cost Financing to
Advance the growing McIlvenna Bay Project
VANCOUVER, BC, Jan. 28,
2025 /CNW/ - Foran Mining Corporation (TSX: FOM)
(OTCQX: FMCXF) ("Foran" or the "Company") is pleased to announce
the signing of a contribution agreement (the "Contribution
Agreement") with the Canadian Government under the Government's
Strategic Innovation Fund ("SIF"), for funding of up to
C$41,000,000 (the "SIF Funding"). A
portion of the SIF Funding will be provided in the form of an
unconditional repayable contribution and another portion as a
non-repayable contribution. The funding will support expenses
related to various technologies that are planned to be employed
at Foran's McIlvenna Bay Project, including battery electric
vehicles, water recycling systems, heat recovery systems, and
pyrite removal in mine tailings. This latest investment from SIF
represents the first such investment targeted towards a copper
development project in Canada and
is one of the few mining projects to receive SIF funding.
The Honourable François Phillipe-Champagne, Minister of
Innovation, Science, and Industry, commented "Our
government is committed to a net-zero future for Canada, and this project is precisely the
investment we need to secure Canada's position as a global leader in clean
technologies and responsibly sourced mineral products. This
investment will help Foran leverage technological innovation to
make critical minerals development more sustainable, reduce
greenhouse gas emissions and contribute to the economic development
of rural, remote and Indigenous communities. It is a win for the
planet, communities across the country and all
Canadians."
The Honourable Jonathan Wilkinson, Minister of Energy and
Natural Resources, commented "Developing our abundant critical
minerals resources in Saskatchewan
will drive economic opportunity and create jobs. Foran's McIlvenna
Bay mining project alone will support over 400 jobs and reinforce
Saskatchewan's position as a
global mining leader by producing more Canadian copper and zinc to
supply our own needs and those of our allies. Canada will continue to be a partner in the
development of our critical minerals supply chains, from end to
end, in order to drive economic benefits and contribute to a secure
future."
The Honourable Terry Duguid, Minister responsible for Prairies
Economic Development Canada commented "Critical minerals are
vital to Saskatchewan's economy
and play a key role in driving Canada's transition to a net-zero economy.
Canada has the resources the world
needs, and today's announcement highlights how we can leverage
these strengths to build a prosperous Prairie economy—one that
supports resilient businesses and thriving
communities."
Dan Myerson, Foran's Executive
Chairman and CEO, commented: "We are honored to secure
additional support from the Government of Canada to advance development of McIlvenna Bay
towards production. This contribution reinforces Foran's commitment
to building sustainable mining practices by integrating innovative
technologies such as battery-electric vehicles, water recycling
systems, heat recovery systems, and pyrite removal in mine tailings
into our operations. It is a testament to the strength of our asset
and team, positioning Foran to become a source of Canadian critical
mineral production. It also supports sustainable resource
development, creating jobs and promoting responsible mining
practices in Saskatchewan.
Unlocking this low-cost capital reflects the strength of McIlvenna
Bay and highlights the critical need for upstream projects to grow
Canada's domestic supply of
copper."
The Strategic Innovation Fund is managed by Innovation, Science
and Economic Development Canada ("ISED") and plays a key role in
providing support for innovative projects in Canada across all sectors. SIF fosters the
development of Canadian businesses that are looking to invest, grow
and create jobs for Canadians. SIF was created in 2017 and
incorporates several legacy programs already administered by ISED.
The 2023 Canadian Federal Budget announced that the SIF will focus
on clean technologies, critical minerals, and industrial
transformation projects. In addition to these priorities, the
program remains committed to attracting large-scale investments to
Canada, accelerating the growth of
innovative Canadian businesses and creating jobs across all sectors
of the economy.
SIF Funding Details
- The SIF Funding consists of draws up to a total of
C$41 million or 15.6% of certain
eligible costs incurred prior to December
31, 2026, whichever is lower.
- The SIF Funding is based on eligible costs of
$263 million of which approximately
$226 million are within its Phase 1
Capital Budget as disclosed on July 15,
2024.
- Draws on the Contribution Agreement are made as eligible
costs relating to investments in battery-electric underground
mining equipment and remote-operations control centre, on-demand
ventilation and heat recovery system integration technologies,
water recycling systems, and pyrite removal technologies are
incurred by Foran.
- The SIF contribution is partially repayable.
About Foran Mining
Foran Mining is a copper-zinc-gold-silver exploration and
development company, committed to supporting a greener future and
empowering communities while creating value for our
stakeholders. The McIlvenna Bay Project is located entirely
within the documented traditional territory of the Peter Ballantyne
Cree Nation, comprises the infrastructure and works related to
development and advanced exploration activities of the Company, and
hosts the McIlvenna Bay Deposit and Tesla Zone. The Company also
owns the Bigstone Deposit, a resource-development stage deposit
located 25 km southwest of the McIlvenna Bay Property.
The McIlvenna Bay Deposit 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.
The McIlvenna Bay Property sits just 65 km 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
225 km.
The McIlvenna Bay Deposit is the largest undeveloped VHMS
deposit in the region. The Company announced the results from its
NI 43-101 compliant Technical Report on the 2022 Feasibility Study
for the McIlvenna Bay Deposit ("2022 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 the 2022 Feasibility Study on
April 14, 2022, with an effective
date of February 28, 2022. Investors
are encouraged to consult the full text of our technical reports
which may be found on the Company's profile on
www.sedarplus.ca.
The Company's head office is located at 409 Granville Street,
Suite 904, Vancouver, BC,
Canada, V6C 1T2. Common Shares of
the Company are listed for trading on the TSX under the symbol
"FOM" and on the OTCQX under the symbol "FMCXF".
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 and
reflect management's expectations and assumptions as of the date
hereof or as of the date of such forward looking statement. Such
forward-looking statements include, but are not limited, statements
regarding our objectives and our strategies to achieve such
objectives; our beliefs, plans, estimates, projections and
intentions, and similar statements concerning anticipated future
events; as well as specific statements in respect of our ability to
incur eligible costs under the Contribution Agreement and make
draws under it; Foran meeting its obligations pursuant to the SIF
Funding; the expected expenses in connection with battery electric
vehicles, water recycling systems, heat recovery systems, and
pyrite removal that will be funded with the SIF Funding; our
ability to develop the McIlvenna Bay Project and initiate
productionl; our commitment to building sustainable mining
practices by integrating innovative technologies into our
operations; the strength of Foran's asset and team; our plan to
become a source of Canadian critical mineral production; the
benefits to be derived from the SIF Funding; the needs of upstream
projects in Canada to produce
copper; statements regarding SIF, ISED and their plans and targets,
including developing Canadian businesses, their focus on clean
technologies, critical minerals, and industrial transformation
projects and commitment to attract large scale investments,
accelerate growth of innovative businesses, and create jobs; our
ability to make repayments under the Contribution Agreement; the
government's commitment to net-zero, positioning Canada as a leader in clean technologies and
responsibly sourced mineral products; the expected benefits to
Foran from the SIF Funding, including in respect of emissions
reductions and developing local communities; the benefits to
Saskatchewan to be derived from
the SIF Funding, including job creation and driving economic
opportunities; the role of critical minerals in Canada's transition to a net-zero economy; our
commitment to support a greener future and empower communities
while creating value for our stakeholders; expectations regarding
our development and advanced exploration activities; and
expectations, assumptions and targets in respect of our 2022
Feasibility Study. All statements other than statements of
historical fact are 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. These
factors include management's belief or expectations relating to the
following and, in certain cases, management's response with regard
to the following: the Company's reliance on the McIlvenna Bay
Property; the Company is exposed to risks related to mineral
resources exploration and development; the Company has no history
of mineral production; the Company's operations are subject to
extensive environmental, health and safety regulations; mining
operations involve hazards and risks; and the additional risks
identified in our filings with Canadian securities regulators on
SEDAR+ in Canada (available at
www.sedarplus.ca). 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. These assumptions
include the availability of funds for the Company's projects;
availability of equipment; sustained labour stability with no
labour-related disruptions; all necessary permits, licenses and
regulatory approvals are received in a timely manner; and the
ability to comply with environmental, health and safety laws.
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 not to place undue reliance on
forward-looking statements and should note that the assumptions and
risk factors discussed in this press release are not exhaustive.
Actual results and developments are likely to differ, and may
differ materially, from those expressed or implied by the forward
looking statements contained in this press release. All
forward-looking statements herein are qualified by this cautionary
statement. The Company disclaims any intention or obligation to
update or revise any forward looking statements, whether as a
result of new information, future events or otherwise, except as
may be required by law. If the Company does update one or more
forward-looking statements, no inference should be drawn that it
will make additional updates with respect to those or other
forward-looking statements, unless required by law. Additional
information about these assumptions, risks and uncertainties is
contained in our filings with securities regulators on SEDAR+ in
Canada (available at
www.sedarplus.ca).
SOURCE Foran Mining Corporation
