Foran Announces $1,000,000 Non-Brokered Private Placement
VANCOUVER, BC--(Marketwired - June 15, 2016) - Foran Mining Corporation (TSX VENTURE: FOM) ("Foran" or the "Company") is pleased to announce that it intends to complete a non-brokered private placement financing of 5,882,352 units (the "Units") at a price of $0.17 per Unit for gross proceeds of $1,000,000 (the "Offering"). 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.
The securities to be issued pursuant to the Offering will be subject to a statutory four month and one day hold period. The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. Finder's fees may also be payable in connection with the Offering to eligible finders, in accordance with the policies of the TSX Venture Exchange. Foran intends to complete the Offering on or about June 30, 2016.
On November 12, 2014, Foran announced a positive preliminary economic assessment for McIlvenna Bay. The Company has large landholdings in east-central Saskatchewan which is host to its 100% owned, McIlvenna Bay Deposit, as well as the historic Bigstone Deposit and other mineralized showings. As at March 31, 2016, the Company had cash and cash equivalents of $0.7 million.
About Foran Mining
Foran is a diversified exploration and development company with projects in the Flin Flon Mining Belt. The Company's flagship McIlvenna Bay Deposit, located in east central Saskatchewan, 65 kilometres west of Flin Flon, Manitoba, is one of the largest undeveloped volcanogenic massive sulphide ("VMS") deposits in Canada.
Foran trades on the TSX.V under the symbol "FOM".
On behalf of the Board of Directors
Foran Mining Corporation
Patrick Soares
President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Statement Regarding Forward-Looking Information
This News Release includes certain "forward-looking statements" which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe Foran's future plans, objectives or goals, including words to the effect that Foran or its management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to Foran, Foran provides no assurance that actual results will meet management's expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, Foran's objectives, goals or future plans, statements, details of the Offering, the Company's portfolio, treasury, management team and enhanced capital markets profile. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to failure to complete the Offering on the terms set out in this News Release or at all, failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, regulatory, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate First Nations and other indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in Foran's public documents filed on SEDAR. Although Foran believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Foran disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable law.