Foran conditionally approved for $14m gov’t funding for McIlvenna Bay infrastructure
Foran Mining (TSX: FOM) has secured conditional approval from Natural Resources Canada (NRCan) for up to C$20 million ($14m) in funding to support the construction of clean energy infrastructure at its McIlvenna Bay project.
The funding will be made through the Critical Minerals Infrastructure Fund (CMIF), which has been allocated C$1.5 billion by the Canadian government to address infrastructure gaps in critical minerals production.
“In its drive to produce copper without polluting more, Foran’s project will help reinforce Canada’s position as a global supplier of choice for clean technology, clean energy and the resources the world needs to build a prosperous economy,” stated Jonathan Wilkinson, Minister of Energy and Natural Resources, in a press release.
Pending final due diligence and a definitive agreement, the C$20 million CMIF funding will go towards the construction of a hydroelectric transmission line, an on-site substation and electrical vehicle charging infrastructure at McIlvenna Bay.
Commenting on NRCan’s support, Foran’s CEO Dan Myerson said: “The investment in developing a hydro transmission line and supporting infrastructure will deliver renewable hydropower to our operations and open up a new critical minerals and mining district in Canada for generations to come – a key step in our plan to achieve net-zero carbon copper production.”
The McIlvenna Bay project is situated within the world-class Flin Flon greenstone belt that extends from Snow Lake, Manitoba, through Flin Flon to Foran’s ground in eastern Saskatchewan, a distance of over 225 km.
The property currently hosts the largest undeveloped VHMS (volcanic-hosted massive sulfide) deposit in this region, with an indicated resource of 39 million tonnes grading 1.20% copper, 2.16% zinc, 0.41 grams gold per tonne and 14 grams silver, or 2.04% copper equivalent.
A 2022 feasibility study outlined an 18-year mine capable of producing an average of 65 million lb. of copper equivalent annually (34.5 million lb. of copper, 58.6 million lb. of zinc, 17,500 oz. of gold and 435,200 oz. of silver).
Under the base-case scenario, the initial capital for this project is estimated at $368 million, while the life-of-mine sustaining capital would require another C$481 million. The after-tax net present value (at a 7% discount) is C$466 million, with an internal rate of return of 22%.
In early Friday trading, Foran Mining’s shares rose 1.8% to C$4.01 apiece for a market capitalization of just under C$1.6 billion. The stock traded as high as C$4.69 over the past 52 weeks, and as low as C$3.43.