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October 28, 2020updated 11 Jun 2021 10:11am

Glencore provides financing to Falco for Horne 5 project in Canada

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.

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.

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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.

“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.”

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What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
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  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
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