The north may be on the verge of having another producing mine. Foran Mining announced several key advancements with its project at McIlvenna Bay this week, including plans to raise hundreds of millions of dollars to move toward building a full, functioning mine.
Company representatives announced the group’s intent as part of a long list of announcements made July 15. First up came the announcement that the company had opened up a series of brokered and non-brokered placements that could raise up to $315 million for the company, including a private placement that company representatives say has already seen interest. Part of that will include strategic investment from Toronto-based mining company Agnico Eagle, which is entering the picture as a new investor for Foran, buying a 9.9 per cent equity interest in the company to the tune of $93 million.
Also involved is Fairfax Financial Holdings, one of Canada’s largest holdings companies, which has already invested tens of millions into McIlvenna Bay - Foran representatives believe the financiers will be increasing their stake in the project.
An agreement has also been reached between Foran and Toronto-based Sprott Resource Lending, which will increase its funding for the project from $150 million to $250 million. Another part of the deal is a $222 million brokered offering, with the company selling over 47.4 million common shares. The money from that will go toward exploration and development in the area. The brokered offering will run until all the new shares are sold or August 8 - whichever comes first - pending approval from regulatory bodies and the Toronto Stock Exchange.
With that money entering the picture, Foran’s board of directors will formally move ahead with building the McIlvenna Bay project. The company is now full-speed ahead into building the north’s next producing mine.
“Foran is at an exciting inflection point in our journey towards critical mineral production, with the board of directors making the formal decision to proceed with the construction of the McIlvenna Bay project,” said Foran executive chairman and CEO Dan Myerson.
To move ahead, the company will use a multi-phase plan, starting with phase one, which will include an estimated $600 million to get the company to start production as early as late 2025. That will include building an on-site process plant to the tune of $126 million, as well as spending $114 million on underground development and equipment, $105 million on infrastructure in the area and $112 million in project indirects.
Commercial production levels are estimated to start in early 2026, according to the company’s current plans.
Phase two will include looks at expanding its existing mine property by further exploring nearby zones of interest, including the Tesla and Bridge zones, which have shown encouraging results in preliminary testing.
