Issued Capital: 94,779,407
FORTUNE MINERALS APPLAUDS SASKATCHEWAN GOVERNMENT
ANNOUNCEMENT
LONDON, ON, December 8, 2009 - Fortune Minerals Limited (TSX-FT)
(�Fortune Minerals� or the �Company�) applauds the Government of Saskatchewan�s December 3, 2009
announcement of several new tax incentives to attract new business to the
province. Fortune Minerals anticipates one of the incentives announced,
the introduction of a five-year Corporate Income Tax incentive for
corporations that process minerals imported into the province, will
directly benefit the Company. Fortune Minerals recently announced
the decision to locate its metallurgical process plant for the NICO
project in Saskatchewan and, once in production, this tax incentive, if
fully enacted into law, has the potential to enhance the economics of
processing metal concentrates in Saskatchewan. During the search for a
suitable location for a processing facility, the Company received support
from Enterprise Saskatchewan and the Saskatoon Regional Economic
Development Authority in locating land in Saskatchewan. Fortune
Minerals is further encouraged by the Government of Saskatchewan becoming
a strong proponent of the project with support and recognition the
Company�s substantial investment to be made and the positive impact it
will have in Saskatchewan and local communities.
The following is an excerpt from the news release issued on December 3,
2009 by Enterprise Saskatchewan:
Saskatchewan encourages value-added mineral processing
The Government of Saskatchewan has announced the introduction of a
five-year Corporate Income Tax incentive for corporations that process
minerals imported into the province to the prime metal stage, which has
the potential for a range of positive economic effects.
�Our Government is committed to enhancing Saskatchewan�s capacity to add
value from natural resources,� Enterprise Saskatchewan Minister Ken
Cheveldayoff said. �For the province at large, this incentive will mean
beneficial short-term economic activity and significant long-term gain,
while an increase in corporate presence will serve to further raise our
national and international presence and impact .�
�This change will significantly enhance the attractiveness of refining
imported minerals in our province,� Cheveldayoff said. �We hope to
attract quality, high-paying jobs to Saskatchewan as a result. We believe
this type of targeted tax incentive holds great potential for encouraging
economic growth in our province, and simply adds to the overall
attractiveness and competitiveness of our business climate�which is
already considerable.�
Legislation to implement the five-year Corporate Income Tax incentive
will be tabled in the spring 2010 session of the Legislature.�
The
proposed Saskatoon area site includes access to the main line of the
Canadian National Railway, which can accommodate a rail spur for delivery
of concentrates from the mine, supplies from vendors and metal products
sold to customers in industrial centres in North America or points of
export. The property is in close proximity to the Trans-Canada
Highway and other services including power, natural gas, and water
supply. Saskatoon is the fastest growing city in Canada and the
commercial centre for the province of Saskatchewan. �With a
diversified economy, a highly skilled work force and respected
post-secondary institutions, Saskatoon can accommodate everything that is
required to construct and operate this process plant� said Fortune
Minerals President, Robi n Goad.
Fortune Minerals has determined that relocating its processing facility
to Saskatoon produces positive net impacts for the entire NICO
development for the benefit of all stakeholders. The Saskatoon
plant is expected to employ 85 people over a 15 to 20 year period based
on the anticipated life of the NICO deposit alone. It may also
provide the Company with an opportunity to source materials from other
projects for custom processing and also to participate in the metals
recycling business. Undertaking such business activities would
provide for a sustainable project extending beyond the anticipated life
of the NICO mine. Investment in the plant is estimated
at $150 million and construction is anticipated to commence upon receipt
of the NICO mine permits and project financing.
About Fortune Minerals
Fortune Minerals Limited is
a diversified natural resource company with several mineral deposit s 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
projects.
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Forward
Looking Information
This
press release contains forward-looking information. This
forward-looking information includes statements with respect to, among
other things, the proposed purchase and development of the site for the
Company�s metallurgical processing facility, anticipated levels of
employment at such facility, planned production from the Company�s NICO
project and the proposed implementation of corporate income tax
incentives by the Saskatchewan government. 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 for the development of the NICO project and the
Saskatchewan metallurgical processing facility, the possibility of
delays in the commencement of production from the NICO project and
construction of the process facility, uncertainties related to the
implementation of the proposed tax incentives 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.
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