Foran Mining (FOM) is looking to raise up to C$1 million in a private placement to fund exploration work at its projects in Saskatchewan.
Under the terms of the offering, the Vancouver-based company intends to issue just over 5.7 million units at a price of 17.5 cents each. These units will be comprised of one common share in Foran and one common share purchase warrant.
Each warrant will be exercisable at a price of 25 cents per share for a period of 60 months from the date of issuance.
In addition to the financing, Foran has announced the appointment of Daniel Myerson as Executive Chairman of the company. He, along with another insider of Foran, are expected to acquire all of the units on issue.
Daniel will acquire four million units for a total of $700,000, while Interim CEO Darren Morcombe will purchase the remaining 1,714,285 units for $300,000.
"Empirically, mining businesses and assets that generate multiple X returns for shareholders are development projects with exploration success in bullish commodities and macro environment," Daniel said.
"Taking into consideration, community support, country risk, mining jurisdiction, government support, operating risk, probability of exploration success, ease of project development, and financing alternatives, Foran is the best available opportunity," he added.
Previously acting as head of Glencore’s Canadian zinc business, Daniel has a range of experience in the metals and mining sector, including refined metal and concentrates trading, mining and smelting operations, and capital markets.
Prior to joining Glencore, he worked for Morgan Stanley in their Equity Capital Markets team in Sydney, Australia, and received a Master of Finance degree from the Queensland University of Technology.
Foran Mining (FOM) is currently up 17.78 per cent to 26 cents per share at 11:52am EST.