TORONTO, ONTARIO--(Marketwired - Feb. 15, 2017) - Fortune Minerals Limited (TSX:FT)(OTCQX:FTMDF) ("Fortune" or the "Company") is pleased to announce that it has entered into an agreement with Cormark Securities Inc. (the "Underwriters"), which has agreed to purchase, on a bought deal basis, 20 million units of Fortune (the "Units") at a purchase price of $0.25 per Unit (the "Offering Price"), for aggregate gross proceeds in the amount of approximately $5 million (the "Offering"). Each Unit will consist of one common share of Fortune (a "Unit Share") and one half of one common share purchase warrant (each whole purchase warrant a "Warrant"), each Warrant being exercisable to acquire one common share of Fortune at a purchase price of $0.35 for a period of 24 months following the closing date.
In addition, the Company has granted the Underwriters an option to purchase additional Units at the Offering Price to raise additional gross proceeds of up to 15% of the Offering, for a period of 30 days after and including the Closing Date to cover over-allotments, if any, and for market stabilization purposes.
The offering is scheduled to close on or about March 8, 2017. Closing is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities.
The net proceeds from the offering will be used to fund an updated feasibility study for the NICO Cobalt-Gold-Bismuth-Copper project and for general corporate purposes.
This press release shall not constitute an offer to sell or solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements.
About NICO:
The NICO deposit contains Proven and Probable Mineral Reserves totaling more than 33 million tonnes that will support a 21-year mine life at a planned mill throughput rate of 4,650 metric tonnes of ore per day. Approximately 180 wet tonnes per day of bulk concentrate will be produced by flotation in the mill containing the recoverable metals and will be trucked from the site on the new road to the rail head at Hay River for railway delivery to the refinery in Saskatchewan and downstream processing to value-added metals and chemicals. Life of mine average annual production is projected to be 41,300 ounces of gold, 1,615 tonnes of cobalt contained in a battery grade cobalt sulphate, 1,750 tonnes of bismuth contained in metal ingots and oxide powder, and 265 tonnes of copper.
The disclosure of scientific and technical information contained in this news release has been approved by Robin Goad, M.Sc., P.Geo., President and Chief Executive Officer of Fortune, who is a "Qualified Person" under National Instrument 43-101. The technical report on the feasibility study referred to above, entitled "Technical Report on the Feasibility Study for the NICO-Gold-Cobalt-Bismuth-Copper Project, Northwest Territories, Canada", dated April 2, 2014 and prepared by Micon International Limited, from which certain information in this press release has been extracted, has been filed on SEDAR and is available under the Company's profile at www.sedar.com.
About Fortune Minerals
Fortune is a Canadian development stage mining company focused on advancing the vertically integrated NICO gold-cobalt-bismuth-copper project in the Northwest Territories and a related refinery the Company plans to construct in Saskatchewan. Fortune also owns the Sue-Dianne copper-silver-gold deposit located 25 km north of NICO and a potential future source of incremental mill feed to extend the life of the NICO mill. The Company also maintains the right to repurchase the Arctos anthracite coal deposits in northwest British Columbia that were recently purchased by a provincial Crown corporation.
