May 31, 2011
Saskatoon, SK (May 31, 2011) -Foran Mining Corporation
(TSX.V: FOM) (“Foran” or the “Company”) today announced details of the Company’s financial results for the second quarter of 2011, as well as a summary of recent key developments. Highlights include: Key Developments since the end of fiscal 2010 (September 30, 2010) include:
- increasing Foran’s ownership of the Company’s flagship McIlvenna Bay property to 100% by purchasing the outstanding 25% interest from a third party;
- continuing to build a strong management team, commencing with the hiring of a President and Chief Executive Officer in November 2010, followed by the hiring of two senior geologists in February and March 2011, a Chief Financial Officer in April 2011 and a Vice President of Corporate Development in May 2011;
- completing two private placement financings with gross proceeds of $13.8 million; including a brokered private placement through a syndicate of agents for a total of 6 million non “flow-through” common shares for gross proceeds of $6.3 million, as well as a non-brokered private placement of 6 million “flow-through” common shares for gross proceeds of $7.5 million;
- strengthening of Foran’s Board of Directors by appointing two board members with extensive experience in the mining industry on February 23, 2011;
- successfully completing a budgeted $1.5 million, 10-hole (5,081 metre) diamond drill program on Foran’s McIlvenna Bay property focused on the Copper Stringer Zone;
- engaging Equity Exploration Consultants to review more than twenty years’ worth of historic files on Foran’s 5 principal Saskatchewan properties and 1 of its Manitoba properties.
Patrick Soares, President and CEO of Foran commented: “We have accomplished a significant amount in a relatively short period of time. We now control 100% of McIlvenna Bay and as a result of our successful financings in the early part of 2011, we expect to be fully funded to advance exploration for the next 2 years. Our ultimate goal is to take McIlvenna Bay from an advanced-stage exploration project to a world-class mine; we have now put the experienced management team in place to move forward to achieve that goal.” Financial Review
- completion of flow-through and non flow-through financings, raising gross proceeds of $13.8 million which will be used for exploration activities and general working capital purposes;
- $15.7 million of cash and cash equivalents and working capital of $16.9 million as at March 31, 2011;
- net loss of $959,976 (2010: loss of $90,832), or $0.02 per share (2010: $0.00 per share), with the most significant contributing factor being stock-based compensation expense of $843,614 (2010: $10,131) resulting from the granting and vesting of stock options to newly hired senior management and two recently appointed board members;
More information about Foran’s financial and operating results, financial condition and liquidity for the second quarter of 2011 is available in the Company’s unaudited consolidated financial statements and management’s discussion and analysis, which are available on sedar at www.sedar.com
and will be posted on the Company’s website at www.foranmining.com.About Foran Mining
Foran is a diversified exploration and development company with projects in the Flin Flon mining belt. The Company’s flagship project is McIlvenna Bay, a Volcanogenic Massive Sulphide (“VMS”) deposit located in east central Saskatchewan, 60 kilometres west of Flin Flon, Manitoba.
McIlvenna Bay is one of the largest undeveloped VMS deposits in Canada, with an indicated mineral resource of 6.7 million tonnes grading 0.87% copper, 6.51% zinc and 26.0 g/t silver and a further 6.0 million tonnes grading 0.83% copper, 5.89% zinc and 24.8 g/t silver in the inferred category, based on copper and zinc prices of US$1.50/lb and US$0.70/lb, respectively, and recoveries of 81% for copper and 72% for zinc. The resource estimate calculated NSR values based on projected mining and milling costs and used an NSR cut-off of $50/tonne. Cut-off grades of 1.5% copper and 4.0% zinc were used for the massive and semi-massive sulphide zones. For the Copper Stringer Zone, the cut-off was based on geological boundaries, entire intersections, and a minimum width of three metres, rather than on a specific cut-off grade. This resource estimate is presented in an independent National Instrument 43-101 technical report, dated November 27, 2006 and authored by Scott Wilson Roscoe Postle and Associates Inc. The report is available on SEDAR at www.sedar.com
or on the Company’s website at www.foranmining.com.
Foran trades on the TSX.V under the symbol “FOM”.For Additional Information Please Contact
President and CEO
Foran Mining Corporation
VP, Corporate Development
Foran Mining Corporation
P. O. Box 26028, RPO Lawson Heights
Saskatoon, SK, S7K 8C1www.foranmining.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.Forward Looking Statements
Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information is identified by words such as “estimates”, “intends”, “expects”, “believes”, “may”, “will” and include, without limitation, statements regarding the company’s plan of business operations (including plans for progressing assets), estimates regarding mineral resources, projections regarding mineralization and projected expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, risks inherent in the mining industry, financing risks, labour risks, uncertainty of mineral resource estimates, equipment and supply risks, title disputes, regulatory risks and environmental concerns. Most of these factors are outside the control of the company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
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