(Kitco News) – Foran Mining (TSXV: FOM) (OTCQX: FMCXF) announced Tuesday that Fairfax Financial Holdings will invest C$100 million in Foran in exchange for 27,777,778 voting common shares at a price of CAD$1.80 per common share.
Foran said the funds will be used to advance its McIlvenna Bay project located in Saskatchewan, Canada.
Foran added that it will continue to focus efforts on arranging the remaining debt component of its project financing.
“Foran will also continue working with its established banking partners with a focus on exploring potential ESG financial products that could enhance overall economics and investment returns for all stakeholders,” said the company in a news release.
A 2020 pre-feasibility study for the project envisions a 3,600 tpd (nominal) underground mine.
Output would be 800M lbs of zinc and over 250 M lbs of copper in flotation concentrates grading 54.7% Zn (zinc concentrate) and 26.8% copper (copper concentrate).
Pre‐production capital costs total C$261M for the project, followed by C$339M of sustaining costs for a total capital cost of C$600M.
Power would come from SaskPower hydroelectric station at Island Falls, Saskatchewan.
Mining legend Pierre Lassonde is a key financial backer of Foran.
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