Foran Mining Secures Funding for McIlvenna Bay Project in Canada

Foran Mining Corporation ("Foran" or the "Company") has unveiled a significant financial initiative totaling up to $315 million through a combination of brokered and non-brokered strategic investments. This includes a brokered equity private placement with strong interest from existing shareholders, such as Fairfax Financial Holdings Limited ("Fairfax"), and an equity private placement by Agnico Eagle Mines Limited ("Agnico Eagle"). Additionally, Foran has finalized a term sheet with a fund managed by Sprott Resource Lending Corp. ("Sprott") to expand its current senior secured project credit facility from US$150 million to US$250 million. These funds are earmarked to accelerate construction activities at the McIlvenna Bay Project, marking a significant step forward in Foran's development strategy.

The strategic investments highlight Foran Mining Corporation's confidence in its 100%-owned McIlvenna Bay Project in Saskatchewan, underscoring robust, long-term shareholder support. The backing from cornerstone investors underscores the project's quality and its significant exploration potential.

Alongside the comprehensive financing package, Foran's Board of Directors has formally approved the commencement of construction at the McIlvenna Bay Project. The Company has also provided updated details, including an initial capital cost estimate for Phase 1 of the project, a development progress update, and outlined initial exploration targets at Tesla. These steps signify Foran's strategic advancement towards realizing the full potential of its mining assets and expanding its footprint in the region.

Foran Mining Corporation has achieved significant milestones with a $222 million brokered private placement, supported by longstanding shareholders like Fairfax, affirming confidence in the McIlvenna Bay Project's potential and Foran's commitment to enhancing shareholder value. Concurrently, a strategic investment from Agnico Eagle will establish them as a cornerstone shareholder, projected to hold a 9.9% equity stake post-transaction. Furthermore, an increased credit facility to US$250 million from Sprott enhances financial flexibility for advancing the McIlvenna Bay Project to full development. These initiatives underscore Foran's strategic positioning and robust financial backing, marking a pivotal phase in the project's progression and future growth prospects.

Financial flexibility remains robust for Foran Mining Corporation as it progresses towards full development of the McIlvenna Bay Project. The Phase 1 capital budget is anticipated to qualify for substantial Federal Investment Tax Credits, potentially resulting in refundable credits ranging between $130 million to $150 million.

With the Board of Directors having formally approved construction, initial production is slated to commence in Q4 2025, paving the way for commercial production by the first half of 2026. The Phase 1 Capital Cost is estimated at US$604 million, strategically optimized for initial production phases while setting the stage for potential Phase 2 expansions. These expansions are being evaluated, leveraging recent exploration successes at the Tesla and Bridge Zones, where ongoing fieldwork aims to confirm significant growth opportunities identified in the Tesla Exploration Target.

The initial Exploration Target at the Tesla Zone indicates substantial mineralization potential, with estimates of 28-45 million tonnes at 0.9-1.3% copper, 3.6-5.4% zinc, 22-34 grams per tonne silver, and 0.2-0.3 grams per tonne gold (2.2-3.2% copper equivalent). Ongoing summer drilling is actively extending known mineralization at the Tesla Zone, which remains open in all directions.

Dan Myerson, Executive Chairman & CEO of Foran, highlighted the pivotal moment in Foran's journey towards critical mineral production with the decision to proceed with the McIlvenna Bay Project. Emphasizing the support from Fairfax, Foran's largest shareholder, Myerson underscored the project's significance in meeting growing demands for copper, zinc, gold, and silver amid increasing global interest in new resource supplies. He expressed pride in partnering with Agnico Eagle, renowned for its industry-leading practices, and G Mining Services as the integrated project management team, citing their expertise proven in successful project deliveries. Myerson outlined Foran's strategic focus on scaling the McIlvenna Bay asset, exploring additional project opportunities, and maximizing shareholder value in the current commodity price environment. Positioned in safe geopolitical jurisdictions, Foran aims to contribute to global advancements in green energy, infrastructure, and artificial intelligence towards a sustainable, decarbonized future.