Foran Mining Corp. (FMCXF) declines after C $ 100 million investment in Fairfax Financial
What is going on with FMCXF?
The shares of Foran Mining Corp. (FMCXF) fell 9.95% after the company announced a C $ 100 million investment from Fairfax Financial Holdings Limited. FMCXF shares were trading at $ 1.90 per share on Tuesday morning.
Fairfax’s private placement will be completed in two tranches in exchange for Foran’s equity. Tranche 1 consists of C $ 50 million and 27,777,778 common voting shares at a price of C $ 1.80 per share, plus warrants to purchase 8 million shares with an exercise price of CAD $ 2.09 per share over five years. The second tranche of C $ 50 million also includes 27,777,778 non-voting shares at C $ 1.80 per share, with 8 million warrants.
What does this mean for Foran Mining Corp.?
Foran plans to use the funding “to rapidly advance the development of the McIlvenna Bay project and centralized plant for the Hanson Lake district,” the company said. It also plans to conduct exploration work in the Hanson Lake District.
“This investment and partnership is a pivotal moment in our company’s short history and will shape our future for many years and decades to come, elevating us onto the global stage,” said Dan Myerson, Executive Chairman of Foran.
Prem Watsa, chairman and CEO of Fairfax, added that his company was “delighted to partner with Foran and support its management team, led by Dan Myerson, in creating the first carbon neutral copper company in the world. world “.
FMCXF has a Short Term Technical Rank of 94. Find out what that means for you and get the rest of the ranking on FMCXF!
Foran Mining Corp is a zinc-copper exploration and development company with projects located along the Flin Flon greenstone belt. Its portfolio of projects includes McIlvenna Bay, Bigstone, VMS Primer, Hanson Lake Project and other projects.