Falco Resources (FPC.V) has entered into an agreement with the ABB Group (ABB) which includes the EPCM contract for the hoisting systems which will be used at the underground polymetallic Horne 5 mine in Rouyn-Noranda, Québec. The deal includes three hoists, and the service and auxiliary hoists will be installed in 2018.
The third hoist, the large production hoist, will take a bit longer to be completed, but that’s not uncommon for a hoist of this size. Keep in mind Horne 5 will be mined as an underground bulk tonnage deposit, and the production hoist will have a 6.5 meter diameter with a payload of almost 40 tonnes. According to Falco, this agreement with ABB will accelerate the dewatering and shaft reconditioning process.
The next few months will be very busy at the Falco headquarters, as the company will undoubtedly secure more contracts with key suppliers, whilst it will also complete the financing mix, needed to restore Horne 5 in all its glory. Falco is already taking care of its working capital needs, as the company has now announced a C$25M bought deal as well. The bought deal will be co-lead by the Bank of Montreal and Macquarie, and will result in 19.38 million shares being issued at C$1.29 per share. Each unit will also contain one half of a purchase warrant, with each full warrant allowing the warrant holder to acquire an additional share at C$1.70 within 18 months after closing the deal.
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The author has a long position in Falco Resources. Falco is a sponsor of the website. Please read the disclaimer
