Fortune Minerals announces closing of the second tranche of the Procon Resources strategic investment
/NOT FOR DISSEMINATION IN THE UNITED STATES OR TO UNITED STATES NEWSWIRE SERVICES/
Fortune and Procon working together to advance the NICO Project towards construction activities in 2014
Issued Capital: 150,526,976
LONDON, ON, Aug. 20, 2013 /CNW/ - Fortune Minerals Limited (TSX: FT) (OTCQX: FTMDF) ("Fortune" or the "Company") (www.fortuneminerals.com) is pleased to report that it has closed the second and final tranche of the private placement related to the previously announced strategic investment by Procon Resources Inc. ("Procon"). A total of 14,625,000 new common shares were issued pursuant to the second tranche at a price of $0.40 per common share for gross proceeds to the Company of $5,850,000. After giving effect to the first and second tranches, Fortune has issued an aggregate of 29,250,000 common shares to Procon for total gross proceeds to the Company of $11,700,000. For more information regarding the private placement, please see the news releases of the Company dated June 27, 2013 and July 25, 2013. A copy of the subscription agreement relating to the private placement is available under the Company's SEDAR profile at www.sedar.com.
Fortune and Procon are working together to advance the NICO Gold-Cobalt-Bismuth-Copper Project ("NICO" or the "Project") in the Northwest Territories ("NT"), Canada towards the objective of commencing construction activities in 2014, including completing project financing arrangements, detailed engineering, and a project execution plan. Fortune will use the proceeds of the private placement financing to advance the Project and for working capital.
This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United Sates unless an exemption from such registration is available.
NICO is positioned to become a reliable Canadian-based producer of gold, cobalt and bismuth. Mining will be conducted primarily by open pit methods with underground ores also contributing mill feed during the first two years from the existing underground workings that were established from previous test mining. The ores will be processed in a concentrator at the site, using simple flotation to produce a bulk concentrate for shipment to a refinery and additional processing to high value metal products. The deposit contains Proven and Probable Mineral Reserves totalling 33 million tonnes containing 1,085,000 ounces of gold, 82 million pounds of cobalt, 102 million pounds of bismuth (representing 15% of global bismuth reserves), and 27 million pounds of copper (see Fortune News Releases dated July 2, 2012 and July 4, 2012). At the planned mill throughput rate of 4,650 tonnes of ore per day, the mineral reserves will sustain operations for 19.8 years. More than $110 million of work has already been invested in the Project including completion of Front-End Engineering and Design and feasibility studies, underground test mining, and pilot plant tests to verify the process methods. NICO is located 50 km north of the Tlicho community of Whati and 160 km northwest of the City of Yellowknife
The disclosure of scientific and technical information contained in this press release has been approved by Robin Goad, M.Sc., P. Geo., President and CEO of the Company, who is a "qualified person" under National Instrument 43-101.
Procon is a full service mining contractor providing a comprehensive range of expertise to meet the growing needs of the mining and civil industries. It provides services in underground and open pit mining, mill construction and rehabilitation, heavy equipment rental and maintenance, and industrial services for infrastructure for the mining, forestry, and construction industries. The corporation has one of the largest owned fleets of mining equipment and has ranked as one of the leading mining contractors in North America and one of the top thirty general contractors in Canada. Well respected in the mining industry, Procon also has an impressive performance record in both safety and operations.
Procon is majority owned by China CAMC Engineering Co. Ltd. ("CAMCE"). CAMCE's core business is international EPC services, contracting, trading, and domestic and overseas project investment. With extensive experience in international project management, CAMCE has completed large turnkey projects in Asia, Africa, Europe, Latin America and the Caribbean in the fields of transportation, municipal engineering, irrigation and water works, power development, construction materials, food processing, textiles, petrochemicals, agricultural and construction equipment and telecommunications.
About Fortune Minerals
Fortune is a diversified resource company with several mineral deposits and a number of exploration projects, all located in Canada. The Company is focused on the development of the Arctos Anthracite Project in British Columbia and the vertically integrated NICO gold-cobalt-bismuth-copper project that is comprised of a mine and mill in the NT that will produce a bulk concentrate for shipment to a refinery for processing to high value metal products. In addition, the Company owns the Sue-Dianne copper-silver-gold deposit and other exploration projects in the NT. Fortune is focused on outstanding performance and growth of shareholder value through assembly and development of high quality mineral resource projects.
This news release contains forward-looking information. This forward-looking information includes statements with respect to, among other things: the expectations of management regarding completing project financing arrangements, detailed engineering and a project execution plan in respect of the Project; the expected use of proceeds of the financing from Procon referred to herein; the Company's expectations with respect to the anticipated development of, and construction at, the Project and the timing thereof; the anticipated mining and processing methods to be used at the Project; anticipated production at the Project; mineral reserves estimates; and the expected mine life at the Project. Forward-looking information contained in this news release is based on the opinions and estimates of management as well as certain assumptions considered by management to be reasonable and which are made as at the date the information is given (including, in respect of the forward-looking information contained in this press release, assumptions regarding the Company's business, the viability of the Project and the Company's ability to generate sufficient funds). Readers should be cautioned that forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. These factors include without limitation: the inherent risks involved in the exploration and development of mineral properties; the inherent volatility of metal prices; the risk that the Company may not be able to arrange the necessary additional financing to construct and operate the Project; uncertainties with respect to the receipt or timing of all applicable permits for the development of the Project; the possibility of delays in the commencement of production from the Project; uncertainties relating to the estimation of mineral reserves; and other factors. Readers are cautioned to not place undue reliance on forward-looking information because it is possible that predictions, forecasts, projections and other forms of forward-looking information will not be achieved by the Company. The forward-looking information contained herein is made as of the date hereof and the Company assumes no responsibility to update or revise it to reflect new events or circumstances, except as required by law.
SOURCE Fortune Minerals LimitedFor further information:
Renmark Financial Communications
Barbara Komorowski: email@example.com, or
John Boidman: firstname.lastname@example.org
Montreal Tel: (514) 939-3989, Toronto Tel. (416) 644-2020