Foran Mining Executes Technical Services Agreement with Glencore Canada for McIlvenna Bay VMS Deposit - Video Available on Investmentpitch.com
Vancouver, British Columbia--(Newsfile Corp. - December 6, 2017) - Foran Mining Corp. (TSXV: FOM), a copper-zinc exploration and development company with projects in the Flin Flon Greenstone Belt, has executed a Technical Services Agreement with Glencore Canada Corporation.
Under the agreement, Glencore will contribute its professional and technical services, assistance, guidance and advice towards completing a Feasibility Study of Foran's McIlvenna Bay Project.
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Glencore will receive an exclusive off-take contract to purchase or toll process all the concentrates and/or other minerals produced from the Project at prevailing market rates. Within 60 days of execution of this Agreement, Glencore will finalise a comprehensive review of the Project which will serve as a basis for its approach to the Feasibility Study (the "Preliminary Work").
McIlvenna Bay, Foran's flagship deposit, located in east-central Saskatchewan, 65 kilometres west of Flin Flon, Manitoba, is one of the largest underdeveloped VMS deposits in Canada. In November 2014, Foran announced a positive preliminary economic assessment for McIlvenna Bay, with an estimated pre-tax NPV @7%, of $382M ($263M after-tax) & 22% Internal Rate of Return (19% after-tax) at a US$ Zinc price of 1.06/lb. Spot Zinc price today is US$1.48/lb.
Patrick Soares, President and CEO, stated: "We are delighted to have Glencore, a world leader in the mining, smelting and marketing of zinc and copper, involved in the McIlvenna Bay Project. Their technical knowledge and expertise, gained from operating a broad spectrum of zinc and copper mines the world over, will be invaluable as we advance McIlvenna Bay towards a production decision. If an affirmative production decision is made, Foran will then have access to the most effective and safest mining methods for the Project. Foran will also continue exploration efforts on its other highly prospective targets in proximity to McIlvenna Bay."
In order to determine the need for and complete a Feasibility Study, an infill drilling program is required. Glencore and Foran will jointly design the program which would then be conducted by Foran's geological team. Assuming the Preliminary Work suggests an economically viable project, the parties will continue with the Feasibility Study. Foran's responsibilities include upgrading the current resources to reserves and all environmental and socioeconomic elements of the Feasibility Study.
Glencore would be responsible for all engineering and technical aspects of the Feasibility Study which is to be delivered nine months from the date of receiving the final assays from the infill drilling program. Glencore has agreed to assist Foran with the procurement of project financing in order to complete the development and placing of the Project into commercial production. They may also provide technical services while the mine is in construction and ramping up to commercial production.
Foran maintains full ownership of the Project and intends to concurrently advance exploration on its other high priority targets: Target A, Thunder Zone and Bigstone.
The shares are trading at $0.42 and with 99 million shares outstanding, the company is capitalized at $41.6 million.
For more information, please visit the company's website at www.foranmining.com, contact Patrick Soares, President & CEO, at 604-488-0008 or email ir@foranmining.com.
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