Fortune Minerals (TSX:FT) has announced that it has completed a fully subscribed $1.25 million non-brokered private placement of units, with a total of 12,500,000 units issued at a subscription price of $0.10 per unit. As quoted in the press release: Each Unit consists of one common share of the Company and one-half warrant with each …
Fortune Minerals (TSX:FT) has announced that it has completed a fully subscribed $1.25 million non-brokered private placement of units, with a total of 12,500,000 units issued at a subscription price of $0.10 per unit.
As quoted in the press release:
Each Unit consists of one common share of the Company and one-half warrant with each whole warrant entitling the holder to purchase one common share of Fortune at a price of $0.15 for a period of one year. Proceeds of this financing will be used for general working capital purposes.
Fortune owns the NICO Cobalt-Gold-Bismuth-Copper development project that is projected to become a Canadian vertically integrated producer of battery-grade cobalt chemicals for the lithium-ion battery industry, with gold and bismuth co-products, and minor by-product copper. More than $115 million has been spent by Fortune advancing this project from an in-house discovery in the mid 1990’s to a development asset with a positive Feasibility Study and Environmental Assessment approvals for both the mine and concentrator in the Northwest Territories and refinery in Saskatchewan. NICO has also been test mined and pilot plant processed to mitigate development risks, and Front-End Engineering and Design (“FEED”) studies have been completed with sufficient detailed engineering for procurement. Fortune has an Execution Plan for project delivery and the Company is working to secure off-take agreements and project financing to commence construction.
NICO has Proven and Probable Mineral Reserves totaling more than 33 million tonnes that will support a 21-year mine life at a planned mill throughput rate of 4,650 metric tonnes of ore per day. An attractive economic attribute to the project is a high concentration ratio that reduces this ore to approximately 180 wet tonnes of bulk concentrate per day containing the recoverable metals. The concentrate is planned to be shipped south to the refinery in Saskatchewan for downstream processing to value-added metals and chemicals. Life of mine average annual production is projected to be approximately 41,300 ounces of gold, 1,615 tonnes of cobalt contained in a battery grade cobalt sulphate heptahydrate, 1,750 tonnes of bismuth contained in metal ingots and oxide powder, and 265 tonnes of copper.