Foran Mining has announced a financial package totalling up to C$315m ($230.2m) to support the initial phase of the McIlvenna Bay Project in Saskatchewan, Canada.

The funding includes a C$222m brokered private placement, with indications of interest from shareholders such as Fairfax Financial.

Additionally, Agnico Eagle Mines is set to make a strategic investment, which is expected to result in a 9.9% equity ownership.

Foran also signed a term sheet with Sprott Resource Lending to increase its existing $150m credit facility to $250m.

Furthermore, Foran’s board of directors has formally decided to proceed with the construction of the underground McIlvenna Bay copper and zinc mine, targeting initial production in the fourth quarter of 2025.

Commercial production from the mine is scheduled to commence in the first half of 2026.

The Phase I capital budget for the project is estimated at C$604m.

Foran executive chairman and CEO Dan Myerson said: “Continued support from our largest shareholder, Fairfax, highlights the unique nature of our generational project and the growing demand for new sources of copper, zinc, gold, and silver.

"Partnering with G Mining Services as our integrated project management team represents the ultimate opportunity to ensure a successful build, leveraging their unparalleled expertise and proven track record in delivering projects on time and budget, most recently at Lundin Gold’s Fruta Del Norte project, Equinox’s Greenstone project, and G Mining Ventures’ Tocantinzinho project.

“In an era where permitted copper assets located in safe geopolitical jurisdictions are both rare and vital, Foran is strategically positioned to support global growth in green energy, infrastructure, and artificial intelligence, moving us towards a decarbonised future.”

Located in east-central Saskatchewan, the McIlvenna Bay Project is poised to become a decline/shaft underground mining operation using long-hole mining methods with cemented paste fill replacement.

Foran is also planning for a Phase II expansion, leveraging recent discoveries at the Tesla and Bridge Zones. The company has begun modelling and fieldwork to evaluate the estimated growth potential.

Last year, Foran secured ministerial approval for its McIlvenna Bay Project, through its wholly owned subsidiary McIlvenna Bay Operating.