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Foran Mining (TSXV:FOM) has announced a non-brokered private placement financing for gross proceeds of $1 million. Proceeds will be used for additional metallurgical work at the company’s McIlvenna Bay project. As quoted in the press release: Each Unit will consist of one common share in the capital stock of the Company and one half (½) …
Foran Mining (TSXV:FOM) has announced a non-brokered private placement financing for gross proceeds of $1 million. Proceeds will be used for additional metallurgical work at the company’s McIlvenna Bay project.
As quoted in the press release:
Each Unit will consist of one common share in the capital stock of the Company and one half (½) of one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant shall entitle the holder to acquire one additional common share of the Company for $0.25 per share for a period of 18 months from the closing date of the Offering.
Pierre Lassonde and Darren Morcombe, each an insider of Foran by virtue of their share ownership in the Company, expect to participate in the Offering. The participation of these insiders pursuant to the Offering constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 — Protection of Minority Security Holders in Special Transactions (“MI 61-101”) and the policies of the TSX-V. The Company is relying upon the exemptions from the formal valuation and minority shareholder approval requirements pursuant to sections 5.5(b) and 5.7(b), respectively, of MI 61-101. The Company was not in a position to file a material change report more than 21 days in advance of the closing of the Offering as the details of participation of the interested parties were not known at such time. Neither the Company nor, to the knowledge of the Company, the related parties pursuant to the Offering, have knowledge of any material information concerning the Company or its securities that has not been generally disclosed.
The net proceeds of the Offering will be used to conduct additional metallurgical studies on the Company’s 100% owned McIlvenna Bay Project focused on testing the impact of blending different zones of mineralization on overall metal recoveries, additional engineering work will also be completed to assess the impact of alternative mining scenarios on the project and general corporate purposes.