July 7, 2010
Saskatoon, SK (July 7, 2010) Foran Mining Corporation (TSXV: FOM) (“Foran” or the “Company”) is pleased to announce the closing of a non-brokered private placement of $500,000 as first announced on May 5, 2010.
The private placement consisted of the sale of 4,166,667 Units to Mr. Darren Morcombe which was closed immediately after the consolidation of the issued and outstanding common shares on the basis of four old shares for one new share which became effective on July 6, 2010 after receipt of regulatory approval. The consolidation was completed in order to rationalize the share capitalization of Foran. The consolidation and private placement were subject to shareholder approval which was granted at the annual and special meeting of shareholders held on June 29, 2010. Each whole Unit consisted of one post-consolidation common share and one common share purchase warrant (a “Warrant”). Each whole Warrant entitles the holder to acquire one post-consolidation common share for $0.12 for a period of two years after closing. With 168,357,619 shares issued and outstanding before the above-noted private placement, the consolidation resulted in 42,089,405 issued and outstanding shares, and 46,256,072 common shares are currently issued and outstanding as a result of the above-noted private placement.
As a result of the $500,000 private placement completed today, and the $3,770,000 private placement completed on June 21, 2010, Foran has completed non-brokered private placements for aggregate gross proceeds of $4,270,000. Net proceeds of the financings will be used to evaluate and develop current assets, acquisitions and working capital. All securities issued in conjunction with the private placements are subject to a hold period, which expires four months after closing.
At the annual and special of shareholders, Brent Schuler, Jeff McGill, Brad Summach and Darren Morcombe were elected as directors. Mr. Darren Morcombe is a new director. Mr. Morcombe is the principal of Springtide Capital Pty. Ltd., a private investment company specializing in micro cap listed companies, venture capital and resource orientated investments.
The Board of Foran now believes that it has achieved its objective of recapitalization of the Company and establishing key long term shareholders who individually have world class track records in developing and financing mining companies. These investors include Pierre Lassonde, David Harquail, Seamans Capital Management LLC, Metech No. 2 Super Fund, an entity owned by Charlie Bass, Laguna Bay Capital Pty. Ltd., an entity controlled by Stephen Timothy (Tim) Biggs and Darren Morcombe. Foran is currently developing mineral exploration programs and further announcements will be made when these plans have been finalized.
For the purposes of National Instrument 62-103 early warning reporting, the address of Mr. Darren Morcombe is via Trevano, 28 Canobbio, Switzerland. Mr. Morcombe exercised control or direction over 364,000 common shares of Foran before completion of the private placement. Foran currently has 46,256,072 common shares issued and outstanding. As a result of the private placement completed by Mr. Morcombe, Mr. Morcombe now holds 4,530,667 common shares representing approximately 9.8% of the outstanding common shares of Foran, and 4,166,667 warrants of Foran that, if exercised, would result in Mr. Morcombe holding approximately 17.2% of the total outstanding common shares of Augen. Mr. Morcombe acquired these Units for investment purposes and may, from time to time, acquire additional securities of Foran or dispose of such securities as he may deem appropriate.
ON BEHALF OF THE BOARD OF DIRECTORS
“Brad Summach”, Director/President
Foran Mining Corporation
306-956-0157Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed this news release and neither accepts responsibility for the adequacy or accuracy of this news release.
This news release contains certain forward looking statements which are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected. Foran does not undertake any obligation to update forward looking statements if circumstances or management’s estimates or opinions should change. The reader is cautioned not to place undue reliance on forward looking statements.
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