Falco Announces Agreement to Purchase Mining Fleet for Horne 5 Project
MONTREAL, QC--(Marketwired - November 10, 2017) - Falco Resources Ltd. (TSX VENTURE: FPC) ("Falco" or the "Company") is pleased to announce that it has signed an agreement to purchase its mining fleet for the Horne 5 Project located in Rouyn-Noranda, Québec, Canada. The Company selected Sandvik Mining and Rock Technology, Val d'Or, Québec, ("Sandvik") as its supplier of choice for the mining fleet.
Luc Lessard, President and Chief Executive Officer commented, "The purchase of the mining fleet brings the Horne 5 Project one step closer to production. Through this agreement, we were able to secure favourable pricing and terms and have managed to further derisk the Horne 5 Project. Sandvik will be providing a complete automation solution that will increase efficiencies during production operations. Its experience, leading-edge technology and proven track record having supplied underground mining projects throughout the world will further enhance the execution of the Horne 5 Project."
From the development phase to the production phase, the Sandvik equipment fleet will incorporate 34 units including LHD's, trucks and drills. The mining fleet will include the following, five 21 ton scoops, five 17 ton scoops, four 50 ton mine trucks, two additional 50 ton mine trucks for Phase 3, four 2 booms automated jumbos, five bolters, 5 automated production drills, two cable bolters and two wet shotcrete sprayers.
The agreement also includes the supply, start-up and installation of Sandvik's AutoMine ® Loading system. A single loader automation system, which will enable Falco to operate multiple loaders in separate production areas from an individual operator station. The system provides the functionality for the operation and supervision of a semiautomated or fully automated loader. The semi-automated production cycle consists of automated tramming and dumping and teleremote operated bucket loading. An automatic bucket filling assistant will also be included giving the system operator the option to either fill the bucket teleremotely or automatically. The AutoMine ® Loading system includes a Access Control System, an operator station and the MineLAN Communication Network.
The total value of the new equipment fleet and AutoMine is approximately C$60 million. No deposits are required until the initial equipment order is made. Delivery of the fleet is scheduled to start in 2020. The Sandvik equipment fleet can be submitted to Credit Development Agencies.
About Falco
Falco Resources Ltd. is one of the largest mineral claim holders in the Province of Québec, with extensive land holdings in the Abitibi Greenstone Belt. Falco owns about 67,000 hectares of land in the Rouyn-Noranda mining camp, which represents approximately 70% of the entire camp and includes 13 former gold and base metal mine sites. Falco's principal asset is the Horne 5 Project located in the former Horne mine that was operated by Noranda from 1927 to 1976 and produced 11.6 million ounces of gold and 2.5 billion pounds of copper. Osisko Gold Royalties Ltd. is the largest shareholder of the Company and currently owns 13.2% of the issued and outstanding shares of the Company. The Company has 180,620,244 shares issued and outstanding.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (together, "forward-looking statements") within the meaning of applicable securities laws and the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, are forward-looking statements. Generally, forward-looking statements can be identified by the use of terminology such as "plans", "expects', "estimates", "intends", "anticipates", "believes" or variations of such words, or statements that certain actions, events or results "may", "could", "would", "might", "will be taken", "occur" or "be achieved". Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include the reliability of the historical data referenced in this press release and those risks set out in Falco's public documents, including in each management discussion and analysis, filed on SEDAR at www.sedar.com. Although Falco believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed times frames or at all. Except where required by applicable law, Falco disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Contact
For further information contact:
Vincent Metcalfe
Chief Financial Officer
514-905-3162
info@falcores.com