Issued Capital: 51,200,107
LONDON, ON, July 18 /CNW/ - Fortune Minerals Limited (TSX-FT) ("Fortune"
or the "Company") announces that it has closed a non-brokered private
placement financing of 1,100,000 common shares, issued on a "flow-through"
basis, at a price of $2.80 per share for aggregate gross proceeds of
$3,080,000. The Company has paid a cash finder's fee of 4% of the aggregate
gross proceeds raised pursuant to the financing.
The gross proceeds of this financing will be used to fund ongoing
exploration activities at the Company's two main projects, namely the NICO
cobalt-gold-bismuth deposit in the Northwest Territories and Mount Klappan
anthracite coal project in northwest British Columbia. Both projects are owned
100% by Fortune, have been assessed in positive definitive feasibility
studies, subjected to test mining and pilot plant processing, and both
projects are in permitting to develop the mines (see Fortune news releases,
dated March 25, 2008 August 31, 2006 and October 17, 2005).
Fortune recently retained CIBC World Markets Inc. to act as its financial
advisor in pursuing strategic alternatives and identifying potential partners
for the advancement of its Mount Klappan coal project (see Fortune news
release, dated July 2, 2008). The Company has also commenced preliminary
discussions with various banks regarding debt facilities to finance
construction of the NICO project.
About Fortune Minerals
Fortune Minerals is a diversified natural resource company with several
mineral deposits and a number of exploration projects, all located in Canada.
They include the Mount Klappan anthracite coal deposits in British Columbia,
and the NICO cobalt-gold-bismuth deposit, the Sue-Dianne copper-silver deposit
and other base and precious metals exploration projects in the Northwest
Territories. Fortune Minerals is focussed on outstanding performance and
growth of shareholder value through assembly and development of high quality
mineral resource projects.
This press release contains forward-looking information. This
forward-looking information includes, or may be based upon, estimates,
forecasts, and statements as to management's expectations with respect to,
among other things, the size and quality of the Company's mineral resources,
progress in development of mineral properties, demand and market outlook for
metals and future metal prices. Forward-looking information is based on the
opinions and estimates of management at the date the information is given, and
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 the inherent risks
involved in the exploration and development of mineral properties,
uncertainties with respect to the receipt or timing of required permits and
regulatory approvals, the uncertainties involved in interpreting drilling
results and other geological data, fluctuating metal prices, the possibility
of project cost overruns or unanticipated costs and expenses, uncertainties
relating to the availability and costs of financing needed in the future and
other factors. Mineral resources that are not mineral reserves do not have
demonstrated economic viability. Inferred mineral resources are considered too
speculative geologically to have economic considerations applied to them that
would enable them to be categorized as mineral reserves. There is no certainty
that mineral resources will be converted into mineral reserves. The
forward-looking information contained herein is given as of the date hereof
and the Company assumes no responsibility to update or revise such information
to reflect new events or circumstances, except as required by law.
For further information:
For further information: Fortune Minerals Limited, Robin Goad,
President, Tel.: (519) 858-8188, Fax: (519) 858-8155,