Falco Assets (TSXV:FPC) Investor Overview

Investor Perception

Falco Assets presents a compelling funding alternative with its high-margin Horne 5 gold undertaking, sturdy partnerships, and advancing path to development in Quebec’s prolific Rouyn-Noranda mining camp.

Overview

Falco Assets (TSXV:FPC) is a Canadian firm targeted on growing gold and base metallic tasks within the Rouyn-Noranda area of Quebec. Rouyn-Noranda is a longtime mining camp with an extended historical past of exploration and improvement. The Noranda mining camp has traditionally produced 19 million ounces (Moz) of gold and a couple of.9 billion kilos (Blbs) of copper, and but it’s nonetheless under-explored for gold.

Falco’s principal property, Horne 5 undertaking, holds 67,000 acres or almost 67 p.c of the whole space of your entire mining camp and is situated underneath the previous Horne mine which produced 11.6 Moz of gold and a couple of.5 Blbs of copper. The 2021 feasibility research on the Horne 5 undertaking suggests sturdy undertaking economics with a complete mine lifetime of 15 years, after-tax NPV at 5 p.c of US$761 million, and a payback interval of 4.8 years, assuming gold costs at $1,600/oz. On the present gold costs of over $2,500/oz, the undertaking economics might be even higher.

In 2024, vital milestones for the corporate embody the working lease and indemnity settlement (OLIA) with Glencore (LON:GLEN) and the Horne 5 undertaking’s environmental influence evaluation (EIA) admissibility. Falco Assets’ working license and indemnity settlement (OLIA) with Glencore Canada will allow Falco to make the most of a portion of Glencore’s lands. The settlement entails establishing a technical committee comprising two representatives from Glencore and two from Falco, tasked with safeguarding the uninterrupted operations of Glencore’s Horne copper smelter. Moreover, a parallel strategic committee might be shaped. Glencore canl nominate one consultant to affix Falco’s board of administrators.

The profitable completion of the OLIA, coupled with life-of-mine copper-zinc focus offtake agreements with Glencore, positions Falco to advance its Horne 5 undertaking in the direction of development. The corporate is at the moment advancing with the allowing course of for the undertaking.

Falco is constant with the following steps associated to acquiring authorities permits and financing for its Horne 5 undertaking after the report filed by the Bureau d’audiences publiques sur l’environnement (BAPE). The BAPE examined the Falco Horne 5 mining undertaking from a sustainable improvement perspective, requesting extra research and analyses. Greater than 90 p.c of the fee’s opinions associated to the undertaking have already been thought-about, deliberate or initiated.

Firm Highlights

• Falco Assets is a Canadian explorer of base and valuable metals targeted on growing its mineral properties within the Rouyn-Noranda area in Quebec, Canada.
• The corporate holds 67,000 acres of mining claims within the Rouyn-Noranda mining camp, accounting for almost 67 p.c of your entire mining camp.
• Rouyn-Noranda has an extended historical past of mining and exploration. The world has established infrastructure and has been host to 50 former producers, together with 20 base metallic mines and 30 gold mines.
• Falco’s principal asset is the Horne 5 undertaking which is a gold undertaking with vital base metallic by-products. It’s situated underneath the previous Horne Mine which produced 11.6 Moz of gold and a couple of.5 billion kilos of copper from 1926 to 1976.
• The Horne 5 is a world-class deposit containing 7.6 Moz gold equal in measured and indicated assets and 1.7 Moz gold equal in inferred assets, making it a prime 5 gold improvement undertaking in Canada by useful resource dimension.
• The Horne 5 undertaking represents a strong, high-margin, 15-year underground mining undertaking with enticing economics. The 2021 feasibility research signifies after-tax NPV at 5 p.c of US$761 million and after-tax IRR of 18.9 p.c.
• The working lease and indemnity settlement (OLIA) with Glencore coupled with EIA admissibility receipt from the federal government physique positions Falco to advance its Horne 5 undertaking in the direction of development.

The Horne 5 undertaking is a world-class deposit situated beneath the previous Horne mine within the Rouyn -Noranda mining camp. Horne mine was operated by Noranda from 1926 to 1976 and produced 11.6 Moz of gold and a couple of.5 Blbs of copper. The Rouyn-Noranda mining camp has a wealthy exploration historical past having produced 19 Moz of gold and a couple of.9 Blbs of copper. The camp has hosted 50 producers together with 20 base metallic mines and 30 gold mines.

The Horne 5 is a world-class deposit containing 6.1 Moz gold equal in confirmed and possible reserves, 7.6 Moz gold equal in measured and indicated assets, and 1.7 Moz gold equal in inferred assets making it a prime 5 gold improvement undertaking in Canada by useful resource dimension.

The undertaking boasts sturdy companions together with Osisko Improvement, Osisko Gold Royalties, Glencore, and the Quebec Authorities. Osisko Improvement is a serious shareholder in Falco Assets with a 16 p.c stake, and the Quebec Authorities holds near 7.5 p.c stake in Falco.

Except for gold, Horne 5 has vital base metallic by-products. As per the feasibility research, valuable metals (gold + silver) account for 75.6 p.c of the mining income, whereas base metals (copper and zinc), account for twenty-four.3 p.c of the whole mine income.

The 2021 up to date feasibility research on the Horne 5 undertaking signifies strong undertaking economics. The feasibility research exhibits the undertaking would generate an after-tax NPV at 5 p.c of US$761 million and an after-tax IRR of 18.9 p.c over the 15-year mine life. The manufacturing profile would common annual manufacturing of 220,300 ouncesgold over the lifetime of the mine. Additional, the research suggests vital copper and zinc by-product credit from the copper and zinc manufacturing, in addition to the extremely automated fashionable operations leading to a low projected all-in sustaining price (AISC) of $587/oz. Horne 5’s AISC is among the many first quartile of worldwide low-cost operations.

Current information flows together with the OLIA with Glencore and the Horne 5 undertaking’s EIA admissibility are vital milestones within the development of the undertaking in the direction of improvement.

Falco Assets’ OLIA with Glencore Canada permits Falco to make the most of a portion of Glencore’s lands. The settlement entails establishing a technical committee comprising two representatives from Glencore and two from Falco, tasked with safeguarding the uninterrupted operations of Glencore’s Horne copper smelter. Moreover, a parallel strategic committee might be shaped. Glencore can nominate one consultant to affix Falco’s board of administrators.

The profitable completion of OLIA coupled with life-of-mine copper-zinc focus offtake agreements with Glencore positions Falco to advance its Horne 5 undertaking in the direction of improvement. Additional, the receipt of affirmation of the admissibility of its EIA for the Horne 5 undertaking from the Ministry of the Atmosphere, the Struggle In opposition to Local weather Change, Wildlife and Parks is a major milestone. It gives a path ahead for the event of the undertaking.

Administration Workforce

Luc Lessard – President, Chief Govt Officer and Director

Luc Lessard brings over 30 years of expertise within the design, development, and operation of mines. Earlier than becoming a member of Falco, he held senior government positions at Osisko Gold Royalties, Canadian Malartic GP (a three way partnership of Agnico Eagle Mines and Yamana Gold), and Osisko Mining Company. At Osisko Mining Company, he oversaw the design, development, and commissioning of the Canadian Malartic gold mine. Lessard has been concerned in quite a few floor and underground mining tasks all through his profession. Lessard holds a bachelor’s diploma in mining engineering from Laval College.

Anthony Glavac – Chief Monetary Officer

Anthony Glavac has 25 years of expertise in monetary reporting, together with over 15 years within the mining trade. Earlier than becoming a member of Falco, he served because the director of monetary reporting and inner controls at Dynacor Gold Mines and because the interim chief monetary officer at Alderon Iron Ore. Glavac was beforehand the senior supervisor at KPMG, the place he labored with a various portfolio of private and non-private corporations, providing providers equivalent to audit, taxation, strategic advisory, and help with public choices. Glavac can be engaged with different public corporations throughout the mining sector.

Helene Cartier – Vice-president Atmosphere, Sustainable Improvement and Group Relations

Helene Cartier possesses over 20 years of experience within the environmental subject. She started her mining profession as a part of the Cambior group earlier than transitioning to the position of vice-president of environmental providers and sustainable improvement at Osisko Mining. There, she performed a pivotal position within the improvement and commissioning phases of the Canadian Malartic gold mine. She has served on the board of administrators of a number of private and non-private corporations.

Mireille Tremblay – Vice-president Authorized Affairs and Company Secretary

Mireille Tremblay possesses greater than 25 years of expertise in enterprise regulation, primarily in securities, mergers and acquisitions, company finance, and governance. Earlier than becoming a member of Falco in January 2021 because the director of authorized affairs, Tremblay served as a authorized advisor to purchasers throughout various industries, together with the mining sector. She advocated for corporations and traders concerned in mining transactions in Africa, notably throughout the development of a gold mine in Burkina Faso and in negotiations with the Ivorian authorities. Moreover, she has represented quite a few corporations, underwriters, and traders in numerous contexts, together with public choices and non-public placement financings, each domestically and internationally. Tremblay holds a regulation diploma from the College of Montreal.

Mario Caron – Impartial Chair

Mario Caron is a mining government with over 40 years of expertise within the mining trade in senior government and board positions. His expertise was gained nationally and internationally in each underground and open pit operations. As CEO of public corporations, he secured mining licenses and numerous permits in quite a few jurisdictions. From 2016 to 2023, he was the Chairman of New Moly LLC. (previously often called Alloycorp Mining), a privatized firm since August 2016 with a molybdenum deposit in British Columbia. Caron acquired his Bachelor of Engineering, Mining at McGill College and is a retired member of the Affiliation of Skilled Engineers of Ontario and of the Ordre des ingénieurs du Québec.

Alexander Dann – Non-independent Director

Alexander Dann is a chartered skilled accountant with over 30 years of expertise main monetary operations and strategic planning for multinational public corporations, primarily within the mining and manufacturing sectors. In February 2021, he was appointed chief monetary officer and vp, finance of Osisko Improvement. Earlier than that, Dann served as chief monetary officer of The Flowr Company from November 2017 to March 2020, the place he efficiently guided such company from a small non-public firm to a TSX Enterprise Trade publicly traded company. Previous to that, he was chief monetary officer of Avion Gold and Period Assets till their acquisitions by Endeavour Mining Company and The Sentient Group, respectively. Dann additionally held senior finance roles with Falconbridge. (now a part of Glencore Canada Company), Rio Algom Restricted (now a part of BHP Billiton) and Litens Automotive Partnership (a bunch inside Magna Worldwide Inc.). Dann is the nominee of Osisko Improvement on the Company’s Board of Administrators pursuant to the Investor Rights Settlement entered into between the Company and Osisko Improvement on November 27, 2020 (the “Investor Rights Settlement”). Dann obtained his Chartered Accountant designation in 1995 and holds a Bachelor’s diploma in Enterprise Administration from Université Laval in Québec Metropolis.

Paola Farnesi – Impartial Director

Paola Farnesi is a senior monetary skilled with over 30 years of expertise in company finance, monetary reporting, M&A and danger administration. She is at the moment vp and treasurer of Domtar Company, liable for negotiating and arranging $2.5 billion in company financings, overseeing an insurance coverage portfolio of $50 billion in insurable values and managing the investments of pension fund belongings of $8 billion. From 1994 to 2008, Farnesi held a number of different management positions at Domtar Company, together with vp of inner audit, the place she was liable for the implementation and subsequent compliance efforts associated to Sarbanes-Oxley. Previous to becoming a member of Domtar Company, Farnesi labored at Ernst & Younger for the reassurance group in Montréal. Farnesi holds a Bachelor of Commerce and a Graduate diploma in Public Accountancy from McGill College, is a member of the Chartered Skilled Accountants of Québec and obtained the ICD.D designation from the Institute of Company Administrators.

Chantal Sorel – Impartial Director

Chantal Sorel is a company director. She has over 35 years of expertise typically administration with full revenue and loss accountability, undertaking financing, undertaking administration, operations, strategic improvement, enterprise improvement, mergers and acquisitions, within the industries of mining and metallurgy, energy, infrastructure, industrial amenities, rail and transit. Sorel held the place of Vice President, Airport Infrastructures at Aéroports de Montréal from April 2023 to February 2024, after being an adviser to the airport from 2020 to 2023. Beforehand, she was government vp and managing director of capital at AtkinsRéalis (previously often called the SNC-Lavalin Group) from 2016 to 2019 the place she was liable for the undertaking financing and asset administration of a $20 billion infrastructure and industrial asset portfolio. Sorel holds a level in structure from Université de Montréal and a grasp’s diploma in undertaking administration from Université du Québec à Montréal and accomplished the Director Training Program collectively provided by the Institute of Company Administrators, the McGill Govt Institute and the Rotman College of Administration on the College of Toronto.