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.
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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".
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).
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