Foran Mining Corp. (TSXV: FOM) announced this morning that it has entered an agreement with Fairfax Financial Holdings (TSX: FFH) for a strategic investment. The agreement will see the latter make a $100-million investment in Foran Mining in exchange for the company’s shares and warrants.
The company relayed the private placement financing will be completed in two tranches. The first $50 million tranche consists of 27.8 million common shares at $1.80 per share, along with 8.0 million warrants to purchase common shares. Each warrant is exercisable to purchase one common share at $2.09 per share within five years from issuance.
The second $50 million tranche meanwhile consists of 27.8 million non-voting common shares, as well as 8.0 million warrants under the same terms.
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Foran Mining intends to use the proceeds on the development of the McIlvenna Bay project, development of a centralized mill and exploration at the Hanson Lake district, further investment in research and equipment, and general corporate purposes. The arrangement is expected to significantly accelerate the development of the firms flagship project.
The offering is still subject to customary conditions and approvals.
Foran Mining Corp. last traded at $2.09 on the TSX Venture.
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