Canadian resources business Forum Energy Metals (TSX-V:FMC) announced that it had successfully raised more than $550,000 to progress its flagship Janice Lake copper/silver project on Wednesday.

The company revealed that it had closed its non-brokered private placement, first announced in February, after raising $554,000 by issuing c.11m shares at $0.05 per unit. Each unit comprises one common share and one warrant that entitles the holder to buy a Forum share at $10p by 1 April 2024.

The money raised in the financing will be used to begin initial preparations for a Summer drilling programme at Janice Lake. The asset is located in north-central Saskatchewan within the Wollaston Domain, a belt of metamorphosed lower Proterozoic supracrustal rocks deposited upon Archean granitoid basement.

Forum has the option to earn a 100pc interest in Janice Lake from Transition Metals by making further staged cash payments over the next three years. The firm believes that it is highly prospective, with more than 20 copper occurrences.

Drill results by Noranda in 1993 include 0.77pc copper over 33m, including 1.6pc copper over 6m within 35m of surface. Meanwhile, Phelps Dodge completed six diamond drill holes in 2003, applying geophysical methods to target mineralisation under cover.  This resulted in the discovery of a new zone that returned values including 0.72pc copper over 26m and 1.33pc copper over 5.83m.

Elsewhere, grab samples collected by Transition Metals have returned values ranging from 0.34pc to 9.35pc copper and 0.7 to 61.7g/t silver.  This has confirmed previous reports of high-grade mineralisation at surface and highlights the potential for the discovery of multiple near-surface, sediment-hosted copper deposits.

According to Forum, the age and depositional environment at Janice Lake are similar to the giant Udokan Deposits of the Lake Baikal region in Siberia, and the Revette deposits of Montana USA. Baikal Mining has reported JORC-compliant measured and indicated resources of 1.822bn tonnes, grading 1.01pc copper, 14.3 g/t silver at the Udokan deposits.

In Wednesday’s update, Forums said the proceeds from its placing would also be put towards a media relations program and general working capital.

Forum primarily explores for energy metals, including copper and uranium in Saskatchewan, which is Canada’s most significant mining province.  It also has exposure to cobalt in Idaho and Oregon. The company says it is well positioned for a rebound in the uranium market, with interests in seven drill-ready projects in the Athabasca Basin. These have all been assembled by a highly experienced team of exploration professionals with a track record of uranium mine discoveries in Canada.

To listen to an interview with Forum’s recently appointed director Burns Singh Tennent-Bhohi on MiningMaven’s sister site ValueTheMarkets.com, please click here.

Author: Daniel Flynn

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