Foran secures $67 million Sandvik equipment financing for McIlvenna Bay

Foran Mining (TSX: FOM; OTCQX: FMCXF) has secured an equipment finance arrangement with Sandvik. The deal covers the initial battery electric vehicle (BEV) mining fleet and components such as charging stations and batteries.

The equipment will be used to develop and mine Foran’s 100%-owned McIlvenna Bay complex in Saskatchewan. The goal is to be a carbon neutral copper producer. The project is the largest undeveloped volcanogenic massive sulphide (VMS) in the Flin Flon Greenstone belt. McIlvenna Bay is 85 km west of Creighton, Sask., and 100% owned by Foran.

The financing agreement allows for draws up to $67 million and will be initiated, at the company's election, as equipment is delivered to the project site. Repayments on draws will commence immediately over a 60-month period.

Foran acquired McIlvenna Bay in 1998 and completed a feasibility study in the first quarter of 2022. The indicated resource in multiple zones is 39.1 million tonnes grading 1.20% copper, 2.16% zinc, 0.04% lead, 0.45 g/t gold, and 8.84 g/t silver. The inferred resource is 5.0 million tonnes grading 0.94% copper, 2.56% zinc, 0.17% lead, 0.27 g/t gold, and 15.85 g/t silver.

The mineral reserve includes 25.7 million tonnes grading 1.23% copper and 2.39% zinc. About 10 million tonnes occur in the massive sulphide with a higher zinc grade, and about 15 million tonnes occur as copper stockwork with a higher copper grade.

The underground mine is to be accessed via ramp initially, and shaft sinking will begin in year five. Thirty-five levels, spaced at 30-metre intervals sill-to-sill, are planned. Mining methods will include conventional long hole methods, sublevel transverse, longitudinal stoping, and Avoca stoping. Transverse stopes will be backfilled with paste fill or filtered tailings. Avoca stopes will be filled with development waste rock.

A new 4,200-t/d processing plant is to be built on site. Both massive sulphide and stockwork ores will be blended and treated together. It will feature SAG and ball milling, sequential flotation, regrinding, multi-stage cleaning, and dewatering. Separate copper and zinc concentrates will be produced for toll smelting.

Foran received provincial environmental approval in July 2023.

The feasibility study is posted on www.ForanMining.com.