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Commodities trader Glencore is providing $10m in bridge financing to Falco Resources to help the latter to move with its flagship Horne 5 project operations in the Canadian province of Quebec.

According to Falco Resources, the bridge financing from Glencore will be made in the form of senior secured convertible debenture.

Falco noted that it has also issued 12,195,122 of its common share purchase warrants to Glencore as part of the deal.

The two companies also signed life-of-mine (LoM) copper and zinc off-take agreements, which will see concentrate from the mine being smelted at Glencore’s facility located adjacent to the Horne 5 Project.

Falco Resources president and CEO Luc Lessard said: “The Horne 5 Project will benefit from Glencore’s renowned expertise in processing base metal concentrates and metals marketing.

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“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.”

The Horne 5 volcanogenic massive sulfide ore (VMS) deposit sits immediately below the former producing Horne Mine that was operated by Noranda (now Glencore Canada) from 1926 to 1976.

Noranda had produced 11.6Moz of gold and 2.5 billion pounds of copper from the mine.

Glencore Copper Metallurgical Operations Global Head Marc Bédard said: “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.”