Source: Foran Mining
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  • Foran Mining Corporation (FOM) has signed a non-binding term sheet with the Ontario Teachers’ Pension Plan Board
  • The term sheet considers a transaction that would have Ontario Teachers’ invest up to $200M in the McIlvenna Bay project
  • The parties are currently under exclusivity and plan to enter into definitive documentation in Q3 2022
  • Foran Mining is a copper-zinc-gold-silver exploration and development company
  • Foran Mining Corporation was up 16.30 per cent, trading at $2.64 as at 11:57 AM ET

Foran Mining Corporation (FOM) has entered into a non-binding term sheet with Ontario Teachers’ Pension Plan Board.

The term sheet considers a transaction that, if completed, would see Ontario Teachers’ investing as much as $200M in the McIlvenna Bay project.

The parties are currently under exclusivity and plan to enter into definitive documentation in Q3 2022.

The proposed investment remains subject to, among other things, ongoing due diligence by Ontario Teachers’ and Foran securing a senior secured credit facility.

The proceeds of the proposed investment, together with proceeds from an anticipated senior secured credit facility, will be used for developing the McIlvenna Bay project towards commercial production.

The proposed investment will consist of a $180M convertible secured instrument, whereby draws will be made contingent on, and pro-rata with, a senior secured credit facility.

The proposed investment from Ontario Teachers’ will also consist of an additional $20M of contingent consideration, payable upon McIlvenna Bay reaching a production threshold of 90Mlbs of copper or copper equivalent per annum on a run-rate basis for 60 consecutive days.

Ontario Teachers’ interest in the operating subsidiary will remain 19.99 per cent should the contingent consideration be paid.

Foran has moved to an advanced stage in its process to obtain a senior secured credit facility.

The company has received multiple term sheets from various reputable mining finance partners. It intends to select a preferred party to underwrite a senior secured ESG-linked credit facility in the near term, with the final amount to be confirmed by the company once determined.

Foran Mining is a copper-zinc-gold-silver exploration and development company committed to supporting a greener future, empowering communities and creating circular economies that create value for all our stakeholders while safeguarding the environment.

Foran Mining Corporation was up 16.30 per cent, trading at $2.64 as at 11:57 AM ET.


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