Foran Announces C$200 Million Brokered Private Placement

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VANCOUVER, British Columbia, Nov. 27, 2023 (GLOBE NEWSWIRE) -- Foran Mining Corporation (TSX: FOM) (OTCQX: FMCXF) (“Foran” or the “Company”) is pleased to announce that it has entered into an agreement with BMO Capital Markets as sole bookrunner and co-lead agent together with Eight Capital and National Bank Financial as co-lead agents, on behalf of a syndicate of agents (together the “Agents”) pursuant to which the Company has launched a proposed private placement (the “Offering”) for aggregate gross proceeds of up to approximately C$200 million. 

The Offering will consist of (i) up to 46,350,000 common shares of the Company (the “Common Shares”) at an issue price of C$4.10 per Common Share, for gross proceeds of up to C$190 million; and (ii) up to 1,563,000 Common Shares with each such Common Share to be issued as a “flow-through share” within the meaning of the Income Tax Act (Canada) (the “FT Shares”) at an issue price of C$6.40 per FT Share, for gross proceeds of up to C$10 million. The net proceeds of the Offering will be used for exploration and development of the Company’s mineral projects in Saskatchewan, and for working capital and general corporate purposes.

The Company will use an amount equal to the gross proceeds from the sale of the FT Shares, pursuant to the provisions in the Income Tax Act (Canada), to incur eligible "Canadian exploration expenses" that qualify as "flow-through critical mineral mining expenditures" as both terms are defined in the Income Tax Act (Canada) (the "Qualifying Expenditures") related to the Company’s mineral projects located in Saskatchewan, on or before December 31, 2024, and to renounce all the Qualifying Expenditures in favour of the subscribers of the FT Shares with an effective date not later than December 31, 2023.

The Offering is scheduled to close on or about December 12, 2023, or such other date as the Company and the Agents may agree and is subject to certain conditions including, but not limited to, the execution of an agency agreement and the receipt of all necessary regulatory and other approvals including that of the Toronto Stock Exchange. The securities issued pursuant to the Offering shall be subject to a four-month plus one day hold period commencing on the day of the closing of the Offering under applicable Canadian securities laws.