The board of Canada-based Foran Mining has approved the C$604-million construction of the underground McIlvenna Bay copper and zinc mine in Saskatchewan.
This decision follows the completion of a C$315-million financing package, which includes a C$222-million brokered private placement from existing shareholders, such as Fairfax Financial Holdings, and an equity private placement by Agnico Eagle.
Additionally, Foran announced a term sheet with a fund managed by Sprott Resource Lending to increase its $150-million senior secured project credit facility to $250 million.
“Continued support from our largest shareholder, Fairfax, highlights the unique nature of our generational project and the growing demand for new sources of copper, zinc, gold, and silver,” stated executive chairperson Dan Myerson.
Agnico Eagle’s strategic investment of 22.96 million shares at C$4.05 introduces another cornerstone shareholder, giving them an expected 9.9% proforma equity ownership on a basic voting basis.
“Agnico Eagle is a partner of choice within the mining industry, recognized globally for its leading practices, and we are proud to have Agnico Eagle as a strategic investor,” Myerson added.
Foran has appointed G Mining Services as an integrated project management team partner. Myerson emphasized that this appointment leverages G Mining’s expertise and proven track record in delivering projects on time and within budget. G Mining has recently completed Lundin Gold’s Fruta Del Norte project, Equinox’s Greenstone project, and G Mining Ventures’ Tocantinzinho project.
“In an era where permitted copper assets located in safe geopolitical jurisdictions are both rare and vital, Foran is strategically positioned to support global growth in green energy, infrastructure, and artificial intelligence, moving us towards a decarbonized future,” said Myerson.
Early works have already begun, with preliminary earthworks and concrete activities underway within the process plant and ancillary buildings. After reaching the first two mining levels underground earlier this year, the first development ore from underground is expected to be extracted in the second half of 2024. Mechanical completion of the grinding and processing circuit is anticipated in the second half of 2025, with hot commissioning expected to start later that year.
Foran aims to have an ore stockpile of about 275,000 tons to support commissioning, with the ramp-up to commercial production expected in the first half of 2026.
McIlvenna Bay hosts one of the largest undeveloped volcanogenic massive sulfide deposits in the region, with indicated resources of 39 million tonnes grading 1.20% copper, 2.16% zinc, 0.41 g/t gold, and 14 g/t silver.
A 2022 feasibility study for the McIlvenna Bay deposit indicated that current mineral reserves could potentially support an 18-year underground mine operation capable of producing an average of 65 million pounds of copper-equivalent annually.