FORTUNE MINERALS ANNOUNCES FILING OF PRELIMINARY
SHORT
FORM PROSPECTUS FOR PROPOSED PUBLIC OFFERING
LONDON, ON, November 6, 2009 - Fortune Minerals Limited (TSX-FT)
(�Fortune� or the �Company�) is pleased to announce that it has filed a preliminary short form
prospectus in connection with an offering of up to 23,077,000 units at an
offering price of $0.65 per unit for aggregate gross proceeds of up to
$15,000,050 (the �Offering�). This Offering is undertaken as part
of the Company�s overall financing plan in pursuit of its goal to become
a specialty metals producer. Mr. Robin Goad, President and CEO of Fortune
stated, �this financing is an important step in maintaining our proposed
development timetable as it will allow us to aggressively pursue the
permitting process related to our NICO project, undertake additional
development activities and take full advantage of the acquisition of the Hemlo Mill assets.�
The units will be offered for purchase and sale, on a reasonable best
efforts basis, by a syndicate of agents led by Paradigm Capital Inc. and
including CIBC World Markets Inc., Dundee Securities Corporation, Jones,
Gable & Company Limited and Loewen,
Ondaatje, McCutcheon Limited (collectively, the �Agents�). Each
unit will consist of one common share in the capital of the Company and
one-half of one common share purchase warrant. Each whole common share
purchase warrant will entitle the holder thereof to acquire one common
share of Fortune at an exercise price of $0.80 per common share at any
time up to 5:00 p.m. (Toronto time) on the day that is 24 months
following the closing date of the Offering.
Fortune has granted to the Agents an option, exercisable, in whole or in
part, in the sole discretion of the Agents, to purchase up to an
additional 3,461,550 units for the purposes of co vering
over-allotments, if any, and for market stabilization in connection with
the Offering.
The net proceeds of the Offering will be used by Fortune principally to
fund (i) the permitting process associated with
the NICO gold-cobalt-bismuth-copper project, (ii) the costs associated
with the development of the NICO hydrometallurgical facility to be
located in Saskatchewan, (iii) the transportation and refurbishment of
the Hemlo Mill assets and down payments on long
lead equipment for the NICO project, and (iv) other uses including costs
associated with maintaining and joint venturing the Mount Klappan anthracite coal project, maintaining the
Company�s interests in its other projects, and for administrative
expenses, general corporate purposes and working capital.
The offering is subject to regulatory approval, including approval of the
Toronto Stock Exchange, and is expected to close on or about December 3,
2009.
The securities described herein have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in the
United States unless registered under the Act or unless an exemption from
registration is available.
About Fortune Minerals
Fortune Minerals Ltd. 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 gold-cobalt-bismuth-copper
deposit, the Sue-Dianne copper-silver deposit and other base and precious
metals exploration projects in the Northwest Territories. Fortune
Minerals owns the buildings and equipment from the Golden Giant Mine at Hemlo, Ontario, which have been dismantled for
relocation to NICO. Fortune Minerals is focused on outstanding
performance and growth of shareholder value through assembly and
development of high quality mineral resource proje
cts.
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