The board of Canada-based Foran Mining has made a formal decision to proceed with the C$604-million construction of the underground McIlvenna Bay copper and zinc mine, in Saskatchewan.

The board approval follows the completion of a C$315-million financing package, comprising a C$222-million brokered private placement from existing shareholders, including Fairfax Financial Holdings, and an equity private placement by Agnico Eagle.

The company also announced a term sheet with a fund managed by Sprott Resource Lending to upsize its $150-million senior secured project credit facility to $250-million.

“Continued support from our largest shareholder, Fairfax, highlights the unique nature of our generational project and the growing demand for new sources of copper, zinc, gold and silver,” commented executive chairperson Dan Myerson.

The strategic investment by Agnico Eagle of 22.96-million shares at C$4.05 brings in another cornerstone shareholder to the company with an expected 9.9% proforma equity ownership on a basic voting basis.

“Agnico Eagle is a partner of choice within the mining industry, recognised globally for its leading practices, and we are proud to have Agnico Eagle as a strategic investor,” commented Myerson.

Foran has appointed G Mining Services as integrated project management team partner. Myerson said the appointment represented an opportunity to ensure a successful build, leveraging G Mining’s expertise and proven track record in delivering projects on time and on budget. G Mining recently completed Lundin Gold’s Fruta Del Norte project, Equinox’s Greenstone project, and G Mining Ventures’ Tocantinzinho project.

“In an era where permitted copper assets located in safe geopolitical jurisdictions are both rare and vital, Foran is strategically positioned to support global growth in green energy, infrastructure and artificial intelligence, moving us towards a decarbonised future,” said Myerson.

Early works have already started, with completion of preliminary earthworks and concrete activities within the process plant and ancillary buildings under way. After reaching the first two mining levels underground earlier this year, first development ore from underground is expected to be extracted in the second half of 2024. Mechanical completion of the grinding and processing circuit is expected in second half of 2025, with hot commissioning expected to start in the latter part of next year.

Foran is targeting an ore stockpile of about 275 000 t to support commissioning, and the anticipated ramp-up to commercial production expected to occur in the first half of 2026. 

McIlvenna Bay is currently host to one of the biggest undeveloped volcanogenic massive sulphide deposits in the region, with indicated resources of 39-million tonnes grading 1.20% copper, 2.16% zinc, 0.41 g/t gold and 14 g/t silver.

A 2022 feasibility study for the McIlvenna Bay deposit outlined that current mineral reserves would potentially support an 18-year underground mine operation capable of producing an average of 65-million pounds a year of copper-equivalent.