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