Senior producers continue to play an essential role in the exploration sector as a major base metals producer invests in Northern Quebec.
Tuesday, Falco Resources Ltd. (TSXV: FPC) announced a funding agreement with Glencore Canada. Falco said that the investment will help develop its flagship Horne 5 Project, located in Rouyn-Noranda, Québec.
The financing agreements include a $10 million senior secured convertible debenture, bridge financing to fund the continued advancement of the Horne 5 Project and life of mine copper and zinc concentrate offtake agreements.
“The Horne 5 Project will benefit from Glencore’s renowned expertise in processing base metal concentrates and metals marketing. The processing of Horne 5 copper concentrate at Glencore’s Horne Smelter will also add to the local economic benefits generated by the Horne 5 Project. The bridge financing provided by Glencore clearly supports the advancement of the work plan in order to continue to reduce risks, resolve challenges and identify additional synergies, all with the goal of working towards a Principal Operating License and Indemnity Agreement and commencing dewatering,” said Luc Lessard, president and chief executive officer of Falco in a press release.
“While there remains significant work to be done and challenges to 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,” said Marc Bédard, Glencore global head of copper metallurgical operations