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Fortune Minerals Ltd FTMDF


Primary Symbol: T.FT

Fortune Minerals Limited is a mining company. It is engaged in the exploration and development of mineral properties in Canada. It is focused on developing the NICO Cobalt-Gold-Bismuth-Copper Project in the Northwest Territories and Alberta that produces a bulk concentrate for shipment to a refinery that it plans to construct in southern Canada. It also owns the satellite Sue-Dianne copper-silver-gold deposit located 25 kilometers (km) north of the NICO Deposit and is a potential future source of incremental mill feed to extend the life of the NICO mill and concentrator. It also maintains the right to repurchase the Arctos anthracite coal deposits in northwest British Columbia. It also has a 100% interest in these 116 hectares of property south of Great Slave Lake with copper, silver, gold, lead and zinc showings. It has a 1% net smelter royalty covering 78 hectares of land positioned in a former silver mining district, located south of the Eldorado mining district at Great Bear Lake.


TSX:FT - Post by User

Post by stock87on Jul 25, 2024 3:02pm
279 Views
Post# 36148564

Some thoughts on the financing and option

Some thoughts on the financing and optionI've been looking at the current situation, and it seems to me that the real issue is the current debt. FT has about $10,000,000 owing at the end of the year. They need to refinance that. The Lind Funding would enable some of that, or the exercise of the option. In the short term, they need the funding to pay for SGS testing, which will get refunded. Cash flow would make it difficult to put down more than they did on the option if they are to refinance in time. I'm hoping the amended terms keep the downpayment applied toward the purchase, even in the case of expiry. As far as the refinery site price is concerned, I doubt that there was real pressure to finish the deal. Industrial real estate near Edmonton isn't soaring, and a site near Lamont is far enough  away to be awkward. However, it's not a bad site for FT's purposes. If they can work a deal with Worley involving some combination of engineering work and financing. There are lots of groups that have an interest in this, including the Tilcho, NWT, AB, Canada, and US governments, as well as Rio Tinto and Worley. The US government has the deepest pockets, and everyone else has an interest in getting their funding, for as much of this as possible. In the meantime, any process involving the leaching of metals is very slow, which means the testing timeline is measured in weeks or months.

On the whole, I'm going to keep holding.
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