/NOT FOR DISSEMINATION IN THE UNITED STATES OR TO UNITED STATES NEWSWIRE
SERVICES/
Fortune and Procon working together to advance the NICO Project towards
construction activities in 2014
Issued Capital: 150,526,976
LONDON, ON, Aug. 20, 2013 /CNW/ - Fortune Minerals Limited (TSX: FT) (OTCQX: FTMDF) ("Fortune" or the "Company") (www.fortuneminerals.com) is pleased to
report that it has closed the second and final tranche of the private
placement related to the previously announced strategic investment by
Procon Resources Inc. ("Procon"). A total of 14,625,000 new common
shares were issued pursuant to the second tranche at a price of $0.40
per common share for gross proceeds to the Company of $5,850,000. After
giving effect to the first and second tranches, Fortune has issued an
aggregate of 29,250,000 common shares to Procon for total gross
proceeds to the Company of $11,700,000. For more information regarding
the private placement, please see the news releases of the Company
dated June 27, 2013 and July 25, 2013. A copy of the subscription
agreement relating to the private placement is available under the
Company's SEDAR profile at www.sedar.com.
Fortune and Procon are working together to advance the NICO
Gold-Cobalt-Bismuth-Copper Project ("NICO" or the "Project") in the
Northwest Territories ("NT"), Canada towards the objective of
commencing construction activities in 2014, including completing
project financing arrangements, detailed engineering, and a project
execution plan. Fortune will use the proceeds of the private placement
financing to advance the Project and for working capital.
This news release does not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of these
securities, in any jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under the
securities laws of such jurisdiction. The securities have not been and
will not be registered under the United States Securities Act of 1933,
as amended, or any state securities laws and may not be offered or sold
within the United Sates unless an exemption from such registration is
available.
About NICO
NICO is positioned to become a reliable Canadian-based producer of gold,
cobalt and bismuth. Mining will be conducted primarily by open pit
methods with underground ores also contributing mill feed during the
first two years from the existing underground workings that were
established from previous test mining. The ores will be processed in a
concentrator at the site, using simple flotation to produce a bulk
concentrate for shipment to a refinery and additional processing to
high value metal products. The deposit contains Proven and Probable
Mineral Reserves totalling 33 million tonnes containing 1,085,000
ounces of gold, 82 million pounds of cobalt, 102 million pounds of
bismuth (representing 15% of global bismuth reserves), and 27 million
pounds of copper (see Fortune News Releases dated July 2, 2012 and July
4, 2012). At the planned mill throughput rate of 4,650 tonnes of ore
per day, the mineral reserves will sustain operations for 19.8 years.
More than $110 million of work has already been invested in the Project
including completion of Front-End Engineering and Design and
feasibility studies, underground test mining, and pilot plant tests to
verify the process methods. NICO is located 50 km north of the Tlicho
community of Whati and 160 km northwest of the City of Yellowknife
The disclosure of scientific and technical information contained in this
press release has been approved by Robin Goad, M.Sc., P. Geo.,
President and CEO of the Company, who is a "qualified person" under
National Instrument 43-101.
About Procon
Procon is a full service mining contractor providing a comprehensive
range of expertise to meet the growing needs of the mining and civil
industries. It provides services in underground and open pit mining,
mill construction and rehabilitation, heavy equipment rental and
maintenance, and industrial services for infrastructure for the mining,
forestry, and construction industries. The corporation has one of the
largest owned fleets of mining equipment and has ranked as one of the
leading mining contractors in North America and one of the top thirty
general contractors in Canada. Well respected in the mining industry,
Procon also has an impressive performance record in both safety and
operations.
Procon is majority owned by China CAMC Engineering Co. Ltd. ("CAMCE").
CAMCE's core business is international EPC services, contracting,
trading, and domestic and overseas project investment. With extensive
experience in international project management, CAMCE has completed
large turnkey projects in Asia, Africa, Europe, Latin America and the
Caribbean in the fields of transportation, municipal engineering,
irrigation and water works, power development, construction materials,
food processing, textiles, petrochemicals, agricultural and
construction equipment and telecommunications.
About Fortune Minerals
Fortune is a diversified resource company with several mineral deposits
and a number of exploration projects, all located in Canada. The
Company is focused on the development of the Arctos Anthracite Project
in British Columbia and the vertically integrated NICO
gold-cobalt-bismuth-copper project that is comprised of a mine and mill
in the NT that will produce a bulk concentrate for shipment to a
refinery for processing to high value metal products. In addition, the
Company owns the Sue-Dianne copper-silver-gold deposit and other
exploration projects in the NT. Fortune is focused on outstanding
performance and growth of shareholder value through assembly and
development of high quality mineral resource projects.
This news release contains forward-looking information. This
forward-looking information includes statements with respect to, among
other things: the expectations of management regarding completing
project financing arrangements, detailed engineering and a project
execution plan in respect of the Project; the expected use of proceeds
of the financing from Procon referred to herein; the Company's
expectations with respect to the anticipated development of, and
construction at, the Project and the timing thereof; the anticipated
mining and processing methods to be used at the Project; anticipated
production at the Project; mineral reserves estimates; and the expected
mine life at the Project. Forward-looking information contained in
this news release is based on the opinions and estimates of management
as well as certain assumptions considered by management to be
reasonable and which are made as 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 business, the
viability of the Project and the Company's ability to generate
sufficient funds). Readers should be cautioned that 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 without limitation: the inherent risks involved
in the exploration and development of mineral properties; the inherent
volatility of metal prices; the risk that the Company may not be able
to arrange the necessary additional financing to construct and operate
the Project; uncertainties with respect to the receipt or timing of all
applicable permits for the development of the Project; the possibility
of delays in the commencement of production from the Project;
uncertainties relating to the estimation of mineral reserves; 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.
SOURCE: Fortune Minerals Limited
