Issued Capital: 222,077,580
LONDON, ON, Aug. 26, 2015 /CNW/ - Fortune Minerals Limited (TSX: FT) (OTCQX: FTMDF) ("Fortune" or the "Company") (www.fortuneminerals.com) is pleased to announce that it has sold the remaining equipment it owns from the Golden Giant Mine at Hemlo, Ontario for proceeds of $415,000. This equipment was initially purchased to be used at the proposed NICO gold-cobalt-bismuth-copper development in the Northwest Territories and Saskatchewan, but is now redundant because of changes to the engineering of the processing facilities. Fortune has received $265,000 of the proceeds, and an additional $75,000 is due on or before November 30, 2015, and the final $75,000 installment is due on or before March 31, 2016. The funds received from this sale will be used to advance work on the Company's NICO project and for general working capital purposes. The sale also eliminates costs associated with the storage of this equipment.
Fortune is engaged in discussions with a number of companies interested in off-take purchase of the metals and chemicals that are planned to be produced from the NICO project. The Company is also advancing discussions with potential partners to secure project financing for the proposed development. Confidentiality agreements have been executed with globally recognized firms and discussions are leveraging the positive outlook for cobalt needed to make rechargeable batteries used in portable electronic devices, electric vehicles, and stationary storage cells.
About Fortune Minerals
Fortune is a Canadian development stage mining company focused on advancing the vertically integrated NICO gold-cobalt-bismuth-copper project. NICO is comprised of a proposed mine and mill in the Northwest Territories ("NT") that will produce a bulk concentrate for shipment to a refinery that the Company plans to construct in Saskatchewan. The products that are planned to be produced at the refinery include cobalt chemicals used to make high performance rechargeable batteries, bismuth metals and chemicals, gold, and a copper byproduct.
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. Additionally, the Company maintains the right to repurchase the Arctos anthracite coal deposits in northwest British Columbia that were recently purchased from by a provincial Crown corporation.
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This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities legislation. This forward-looking information includes statements with respect to, among other things, the Company's plans to develop NICO. Forward-looking information is based on the opinions and estimates of management as well as certain assumptions 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 ability to arrange the necessary financing to continue operations and the development of the NICO project). However, such 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 the risks that the Company may not be able to arrange the necessary financing to continue operations, and that the Company may not be able to finance and develop NICO on favourable terms or at all. 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 Limited