The financing will almost cover the estimated C$368 million cost to build the project about 330 km northeast of Prince Albert, Saskatchewan, according to a feasibility study released in February. It also forecast C$481 million in sustaining capital for the 18-year initial phase of the mine.
“We have been meticulously evaluating various financing proposals from numerous lenders to support the development,” Dan Myerson, Foran’s chief executive officer, said in the release. “This agreement maximizes risk-adjusted value per share for existing shareholders.”
The McIlvenna Bay project has probable reserves of 25.7 million tonnes grading 1.23% copper, 2.39% zinc, 0.47 gram gold per tonne and 15.3 grams silver, according to the feasibility study. It is aiming for an underground mine to produce 38.8 million lb. copper, 63.6 million lb. zinc, 20,000 oz. gold and 486,000 oz. silver annually for the first 15 years.
The study…
