November 24, 2010
Foran Announces Private Placement By Patrick Soares
Saskatoon, SK (November 24, 2010) — Foran Mining Corporation (TSXV: FOM) (“Foran”) is pleased to announce that Mr. Patrick Soares, P.Geo., has been appointed as President and CEO of Foran, and a member of the Board of Directors. In addition, Mr. Soares will complete a $1,160,000 private placement consisting of the purchase of 2,000,000 Units at a price of $0.58 per Unit, subject to regulatory approval and closing.
Mr. Soares, a professional geologist, most recently served as the President and CEO of Brett Resources Inc. (“Brett”). Beginning in November of 2007, when he assumed his position at Brett, Mr. Soares and his team focused their efforts on building Brett’s Hammond Reef Project. The Hammond Reef resource grew from 1.8 million ounces to more than 6.7 million ounces of gold. This growth in resource, combined with the positive results of a preliminary assessment on the project, led to Brett’s market capitalization increasing from approximately $54 million to approximately $372 million by May 2010 when Brett was acquired by Osisko Mining Corporation.
Prior to his joining Brett, Mr. Soares worked in the field of investor relations, corporate development, and as a geologist. Some of the companies he has worked with include: Sutton Resources Ltd., acquired by Barrick Gold in 1999; EuroZinc Mining Corp., now part of Lundin Mining Corporation; and, Aurizon Mines Ltd. Mr. Soares has a combined nine years of experience as a project and mine geologist at the Ulu and Lupin mines in the North West Territories, and has been actively involved in the management of public companies since 1996. Mr. Soares currently sits on the Board of Directors and serves as CEO of Skyline Gold Corporation. In addition, he is a member of the Board of Directors for Edgewater Exploration Ltd. and Lupaka Gold Corp., a private company involved in gold exploration in Peru.
Mr. Soares has subscribed to 2,000,000 Units, each Unit consists of one common share of Foran and one-half of one common share purchase warrant (a “Warrant”). Each whole Warrant entitles the holder to acquire one common share of Foran for $0.70 for a period of five years from closing. The Warrants are subject to certain conditions before they may be exercised as follows:
- total of 250,000 Warrants are exercisable at any time;
- a total of 250,000 Warrants are exercisable when Patrick Soares recruits a management team on terms and conditions which are satisfactory to Foran;
- a total of 250,000 Warrants are exercisable when Foran completes an updated technical report in accordance with National Instrument 43-101 which includes the copper stringer zone of the McIlvenna Deposit; and
- a total of 250,000 Warrants are exercisable when Foran completes a scoping study in accordance with National Instrument 43-101 which includes appropriate metallurgical test work.
The recruitment of Patrick Soares is a value enhancing development and an important step in Foran’s previously stated goal of establishing itself as a significant polymetallic exploration and development company. Mr. Soares’ leadership will enhance the realization of Foran’s strategy to develop the McIlvenna Bay deposit into a producer.
Foran identified the following immediate and key objectives as essential to becoming a significant polymetallic exploration and development company (see press release of October 6, 2010):
- Consolidate all existing historical data and begin exploration on some of the Company’s key assets.
- Recruit a Canadian based management team with a proven track record.
- Attract further Canadian based directors with proven track records.
- Strategically develop Foran to enable it to achieve its goal of increasing shareholder wealth.
Foran has appointed Equity Exploration as exploration managers to achieve the first objective (see press release of October 6, 2010). Recruitment of Patrick Soares as a first class Canadian based President and CEO President is a key milestone with respect to the second objective. Acquisition of a 100% interest in the McIlvenna Bay deposit is a key milestone with respect to the fourth objective (see press release of October 22, 2010).
The next steps for Foran will be to prepare a clear action plan for the development of the McIlvenna Bay deposit into a producer and the appointment of additional directors to help govern and guide this process. Foran wishes to thank Bradley Summach for serving as President of Foran. “I would like to personally and on behalf of the Board sincerely thank Brad for the fantastic job he has done in guiding Foran over the last 2 years. His advice has been instrumental in the recent transformation of Foran” said the Chairman. Mr. Summach continues as a director of Foran.About Foran Mining Corporation
Foran Mining is an exploration company currently focused on the McIlvenna Bay deposit, which is comprised of 26 claims totalling 12,950ha, and is located approximately 1 kilometre south of Hanson Lake, Saskatchewan, approximately 375 km northeast of Saskatoon and 65 km west south-west of Flin Flon, Manitoba.
“ON BEHALF OF THE BOARD OF DIRECTORS”
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
FORWARD LOOKING STATEMENTS:
This news release contains forward-looking statements. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management’s expectations. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company’s mineral properties, and the Company’s financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company’s forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.
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