Foran Mining to receive $155m for McIlvenna Bay copper project in Saskatchewan

McIlvenna Bay project in Saskatchewan, Canada. (Image courtesy of Foran Mining.)

Canada’s Foran Mining Corporation (TSX.V: FOM) (OTCQX: FMCXF) has inked a preliminary deal for a C$200m ($155.1m) investment by the Ontario Teachers’ Pension Plan Board, for the company’s McIlvenna Bay copper project in Saskatchewan.

The agreement locks the parties into an exclusivity period deal, with the goal of signing a definitive agreement in Q3 2022.

The proceeds of the proposed investment will be used for the development of the McIlvenna Bay project towards commercial production, Foran said.

McIlvenna Bay is said to be the largest undeveloped Volcanogenic Massive Sulphide (VMS) deposit along the prolific Flin Flon Greenstone Belt, which sprawls east-central Saskatchewan and the central area of Manitoba.

Recent feasibility results outlined an initial phase 18 year mine life producing 65 million pounds of copper equivalent at an average all-in sustaining cost (net of credits) of $0.90 per pound. 

Foran is also trying to turn McIlvenna Bay into the world’s first carbon-neutral copper mine by offsetting carbon emissions generated in the exploration phase.

The Ontario Teachers’ Pension Plan, with more than $240 billion in net assets, has investments in natural resources and royalty interests in oil and gas.

The organization manages benefits for retired school teachers of that Canadian province.