Falco Resources Lands Full Ownership of Horne 5 Project

Falco Resources (TSXV:FPC) made a big step on Tuesday (September 6) when it announced it had acquired full ownership of the Home 5 Project from resource power house, Glencore (LSE:GLEN).

Rumours of Glencore optioning to sell its option in the Horne Project circulated in June. The company had retained a back-in right when it sold the project in 2011, according to Falco’s press release.

That being said, Glencore has decided to forego the back-in right and instead will retain a 2 percent NSR on all metals produced from the Horne 5 Project.

Sean Roosen, Falco’s chair of the board, said in the press release that the company is pleased to have acquired full ownership of the project.

“We look forward to bringing this world-class deposit back into production after more than a 40 year dormant phase subsequent to having previously produced over 11 million ounces of gold and 2.5 billion pounds of copper,” he said.

In a Haywood Securities Report written by Mick Carew and Tara Hassan, they write that Glencore not exercising its back-in right for the project is positive, meaning it will allow the project to “move forward at a more rapid pace, simplifies the ownership structure, and could attract a higher valuation.”

What’s more, the report states that Glencore not optioning its back-in right will allow the project to generate a much greater valuation.

Historically, the Horne project is an underground mine with a focus on copper and gold as a by-product. Roughly 2.5 billion pounds of copper and 11.5 million pounds of gold were produced between 1927 and 1976.

In addition to the Horne project, Falco has extensive land holdings in the Abitibi Greenstone and owns 74,000 hectares of land in the Rouyn-Noranda mining camp, which includes 13 former gold and base metal mine sites.

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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Falco Resources is a client of the Investing News Network. This article is not paid for content.