Completion of Strategic C$100 Million Private Placement /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
VANCOUVER, BC, Aug. 6, 2021 /CNW/ - Foran Mining Corp. (TSXV: FOM) (OTCQX: FMCXF) ("Foran" or the "Company") is pleased to announce the completion of the strategic C$100 million private placement (the "Financing") by certain entities controlled by Fairfax Financing Holdings Limited (collectively, "Fairfax").
The Financing consisted of the following:
- C$50 million gross proceeds through the issuance of 27,777,778 units (each, a "Common Share Unit") at a price of C$1.80 per Common Share Unit. Each Common Share Unit is comprised of one common share ("Common Share") and 0.288 of a Common Share purchase warrant (each, a "Warrant"). There is a total of 27,777,778 Common Shares and 8,000,000 Warrants issuable under the Common Share Units. Each whole Warrant may be exercised into one (1) Common Share at a price of C$2.09 for a period of five (5) years from the date of issuance; and
- C$50 million gross proceeds through the issuance of 27,777,778 non-voting units (each, a "Non-Voting Unit"), at a price of C$1.80 per Non-Voting Unit. Each Non-Voting Unit is comprised of one non-voting share ("Non-Voting Share") and 0.288 of a Warrant. There is a total of 27,777,778 Non-Voting Shares and 8,000,000 Warrants issuable under the Non-Voting Units. Each whole Warrant may be exercised into one (1) Common Share at a price of C$2.09 for a period of five (5) years from the date of issuance.
The Common Shares, Non-Voting Shares and Warrants issued in connection with the Financing and the Common Shares underlying the Warrants are subject to a statutory hold period of four months plus one day from the date of the closing of the Financing, in accordance with applicable securities legislation.
Foran is very pleased to welcome such a highly respected and supportive shareholder in Fairfax to its shareholder registry as its largest investor. This unique transaction establishes a strategic partnership focused on building Canada's first carbon neutral copper company, with the Company's strong proforma cash balance of approximately C$120 million, positioning Foran well to execute on its business plan and accelerate development of the McIlvenna Bay Project.
The net proceeds of the Financing will be used to rapidly advance the development of the McIlvenna Bay Project and centralized mill for the Hanson Lake District as well as further exploration on the Company's substantial land holdings, enable further investment in key technological and operational research and equipment, and for general corporate purposes.
https://www.newswire.ca/news-releases/foran-mining-announces-completion-of-strategic-c-100-million-private-placement-by-fairfax-893112199.html