Glencore provides backing for Falco's Horne project
TSX-V-listed Falco Resources on Tuesday announced an agreement with Glencore Canada, whereby the commodities trader and miner will provide a $10-million bridge financing to fund continued project operations at the Horne 5 VMS deposit, in Quebec.
The companies also entered into life-of-mine copper and zinc offtake agreements, with concentrate to be smelted at Glencore’s Horne smelter, whcih is adjacent to the project and the only copper smelter in Canada.
Glencore has agreed to underwrite a $10-million senior secured convertible debenture bridge financing. Funds would be used primarily for the technical work, studies and modelling necessary to continue to reduce project risks, including risks to Glencore’s Horne smelter, resolve technical and other challenges and identify additional synergies, all with a goal of working towards a principal operating licence and indemnity agreement between Falco and Glencore.
Glencore global head of copper metallurgical operations Marc Bedard said that there remained significant work to be done, but added that the challenges could be addressed.
“Glencore Canada is committed to working with all stakeholders towards creating the winning conditions necessary for the further development of the Horne 5 project and of the fully integrated copper industry in Quebec, an industry vital to the transition towards the electrification of transportation.”
Falco CEO Luc Lessard said the Horne 5 project would benefit from Glencore’s expertise in processing base metal concentrates and metals marketing.
“The concentrate agreements, the potential equity ownership, and the 2% net smelter return royalty interest held indirectly through BaseCore LLP provide strong alignment between Glencore and Falco, along with our other major partners.”
Horne would produce an average of 219 000 oz/y of gold
Mine life of 15 years, with peak-year payable production of 268,000 ounces, average life-of-mine (“LOM”) annual payable production of 219,000 ounces
In operation since 1927, the Horne smelter is the only copper smelter in Canada.
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