Foran Mining Corp., a Canadian company with a promising copper and zinc project in Saskatchewan, is raising $200-million to fund its next stage of development, a rare financing for a junior miner in a tough market for share sales.
Foran, which is based in British Columbia, is selling up to $190-million worth of new shares at $4.10 apiece through a private placement, as well as $10-million worth of “flow-through” shares that carry a special tax treatment.
Foran’s shares have soared nearly 2,500 per cent over the past three years, transforming the company from a penny stock to an enterprise worth $1-billion, but even established mining companies are struggling to raise money in this market. Many investors got burned when the commodity supercycle fuelled by China’s demand for metals crashed in 2012.
Social norms have also changed over the past decade and shareholders have embraced the ESG movement that advocates environmental, social and governance principles.
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