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Investor Insights
The NICO project’s receipt of substantial government funding to date and Fortune Minerals’ strong relations with the Indigenous and local communities in the Northwest Territories create a compelling case for investors considering a battery metals play with significant polymetallic potential.
Overview
Cobalt is an often-overlooked critical mineral in the transition to clean energy, required to make the cathodes of many lithium-ion batteries used in electric vehicles (EVs), stationary storage cells and consumer electronics. Cobalt is also used in superalloys for the aerospace industry, cemented carbides, cutting tools, permanent magnets, surgical implants, catalysts, pigments and agricultural products.
The global cobalt market is expected to reach a volume of almost 306,000 metric tons by 2028. Cobalt outlook in the long-term is expected to double by 2030 with the EV segment accounting for 89 percent of growth, energy storage at 3 percent and superalloys at 2 percent.
Fortune Minerals (TSX:FT,OTCQB:FTMDF) is a Canadian mining company developing its wholly owned, vertically integrated NICO primary cobalt project in Canada to produce cobalt chemicals for the rapidly expanding lithium-ion battery industry. The NICO mineral reserves also contain 1.1 million ounces (Moz) of gold, 12 percent of global bismuth reserves, and copper as a minor by-product. NICO comprises a proposed mine and mill in the Northwest Territories that will produce bulk concentrates that will be shipped to a planned refinery in Southern Canada. The concentrates from the mine will then be processed into energy and eco-metals for the growing clean energy economy.
NICO is a primary cobalt deposit, but the mineral reserves also contain 1.1 Moz of gold as a countercyclical and highly liquid co-product that can be easily converted to cash. The gold contained in the NICO deposit stands out among other cobalt projects, where the metal is produced primarily as a by-product of copper or nickel.
NICO is also the largest known deposit of bismuth in the world with about 12 percent of global reserves – even though it represents only about 10 percent of the company’s projected revenue from operations at recent metal prices.
The cobalt, bismuth and copper contained in the NICO deposit are all classified as critical minerals by Canada, as they have essential use in new technologies, cannot be easily substituted with other minerals, and because supply chains may be threatened by geopolitical issues.
The mineral reserves for the NICO deposit were estimated in compliance with NI-43-101 and total 33.1 million tonnes (Mt), containing 82.3 million lbs (37,341 tonnes) of cobalt, 1.1 Moz of gold, 102.1 million lbs (46,325 tonnes) of bismuth and 27.2 million lbs (12,296 tonnes) of copper to support a 20-year mine life at a mill throughput rate of 4,650 metric tons of ore per day.
Sums of the combined reserves may not exactly equal sums of the underground and open pit reserves due to rounding errors.
The mineral reserves are based on 327 drill holes plus surface trenches and underground test mining verifying the deposit grades, geometry and mining conditions. Both of Fortune Minerals’ deposits are open for potential expansion, extending the deposits with additional drilling or identifying new zones or deposits.
The Government of Canada is providing funding of up to $714,500 for the planned cobalt sulphate process pilot and other metallurgical test work at the NICO project. Additionally, the Government of Alberta, through the Alberta Innovates, has also approved additional funding contributions of up to $172,670 toward the budgeted program costs under its Clean Resources Continuous Intake Program. The funds will be used to support a mini-pilot at SGS Canada to confirm certain process design criteria and improvements to the NICO project metallurgical processes.
Fortune Minerals also received an C$8.74 million grant from the United States Department of Defense to expand the domestic capacity and production of cobalt for the battery and high strength alloy supply chains. The company recently secured a total of C$17 million financial support from the Canadian and US governments to advance the NICO project.
The company’s other assets include the Sue-Dianne deposit, which has near-surface, copper-silver-gold deposits that can feed into the NICO mill.
Company Highlights
- Fortune Minerals is building a reliable, vertically integrated North American critical minerals project to produce cobalt chemicals for the rapidly expanding lithium-ion battery industry.
- The NICO project is one of a few advanced-stage cobalt projects outside the Democratic Republic of the Congo, with an average annual production of approximately 1,800 tons of cobalt units in the first 14 years of the 20-year mine life.
- The company's flagship asset’s primary cobalt production is independent of nickel and copper mining and contains more than 1 million ounces (Moz) of in-situ co-product gold.
- Fortune Minerals has received environmental assessment approval for the mine, concentrator and access road in the Northwest Territories.
- The company has developed strong relationships with Indigenous and local communities and governments, which paved the way for federal, Northwest Territories and Tlicho Governments' approval of the project and financial support for local infrastructure, including the $400 million Tlicho all-season highway project to Whati that recently opened to the public, and more than $800,000 in federal and provincial funding for exploration work at NICO.
- Collaboration with Rio Tinto to assess options to improve recovery of bismuth and cobalt contained in Rio Tinto’s Kennecott smelter waste streams.
- Fortune Minerals recently secured a total of C$17 million in funding from the Canadian and US governments to advance the NICO project.
- An experienced management team leads Fortune Minerals towards fully developing and capitalizing on its assets.
Key Project
NICO Cobalt Project and Reserves
The NICO cobalt-gold-bismuth-copper deposit is an IOCG or Olympic Dam-type mineral deposit situated on 5,140 hectares of mining leases, located 160 kilometers northwest of the City of Yellowknife and 50 kilometers north of Whati in Canada's Northwest Territories.
Fortune Minerals has spent more than C$135 million preparing technical, environmental and social studies to support the development of the NICO cobalt-gold-bismuth-copper project. Environmental assessment approval and the major mine permits have been received for the planned facilities in the Northwest Territories. The project is expected to be a reliable North American producer of critical minerals with supply chain transparency and custody control of ethically produced metals from ores through to the production of value-added metals and chemicals.
Project Highlights:
- Excellent Infrastructure in Place and Under Development: There is all-season road access to Whati via Highway 9, a $400-million design/build/operate/maintain private-public partnership between the Government of the Northwest Territories and North Star Infrastructure. The federal government contributed up to $53 million of the project's capital costs through the Canadian Infrastructure Fund. Fortune Minerals has received environmental assessment approval to build a 50-kilometer spur road from Whati to the mine site, which is included in the mine site capital costs. With the construction of the road, Fortune will be able to transport metal concentrates from the mine to the railway at Enterprise or Hay River and deliver them by rail to the company's planned refinery in Alberta. The NICO leases are located 25 kilometers west of the Snare hydro complex and electrical grid servicing Yellowknife.
- Large, Well-defined Polymetallic Deposit: NICO and the company's satellite Sue-Dianne copper-silver-gold deposit are classified as iron oxide-copper-gold (IOCG)-type deposits with world-class global analogs, including Olympic Dam in South Australia, the Salobo and Sossego deposits in Brazil, and the Candelaria district deposits in Chile. They occur in clusters of multiple deposits, commonly aggregating more than a billion tonnes in similar tectonic and geological environments.
- Encouraging Results from 2021 Exploratory Drilling: The company’s exploratory drilling program consisted of 13 drill holes totaling 2,482 meters. Promising results from the campaign include:
- 3.17 meters, averaging 0.42 percent cobalt, 0.55 g/t gold, and 0.37 percent bismuth at a depth of 28.7 meters, including 1.05 meters, grading 0.99 percent cobalt, 0.25 g/t gold, and 0.56 percent bismuth;
- 4.8 meters, averaging 0.12 percent cobalt and 0.50 g/t gold at a depth of 8 meters, including 1.98 meters, averaging 0.26 percent cobalt and 1.13 g/t gold;
- 2.31 meters, averaging 0.11 percent cobalt and 0.87 g/t gold at a depth of 139.6 meters, including 1.16 meters, grading 0.20 percent cobalt and 1.63 g/t gold.
- 2014 Micon NICO Feasibility Study: A positive feasibility study was completed in 2014 by Micon International Limited that identified the mineral reserves to support a 20-year mine life at a mill throughput rate of 4,650 metric tons of ore per day. The feasibility study and previous front-end engineering and design study by Aker Solutions contemplated combined open-pit and underground mining during the first two years of the mine life, followed by open-pit-only mining. The company will be updating this study to include project optimizations, current capital and operating costs, and current commodity prices.
Sue-Dianne Copper Deposit
The Sue-Dianne copper-silver-gold deposit located near the NICO deposit belongs to IOCG class of deposits with world-class global analogues and is a potential future source of incremental mill feed to extend the life of the NICO mill and concentrator.Management Team
Mahendra Naik - Chairman and Director
Mahendra Naik is a chartered accountant and was one of the founding directors and key executives who started IAMGOLD Corporation, a TSX and NYSE-listed gold mining company. As chief financial officer from 1990 to 1999, he was involved in the negotiations of the Sadiola and Yatela mine joint ventures with Anglo American, and the US$400 million project debt financing for the development of the mines. In addition, he was involved in more than $150 million in equity financings including the IPO for IAMGOLD. Naik is currently the chief executive officer of FinSec Services., a private business advisory company and a director and member of the audit and compensation committees for IAMGOLD. In addition, Naik is a director and member of audit, compensation and risk/control committees of FirstGlobalData Limited, Goldmoney Network Limited and Jameson Bank.
Robin E. Goad - President, CEO and Director
Robin Goad is a professional geologist with 30 years of experience in the mining and exploration industries. Before founding Fortune in 1988, Goad worked for large companies, including Noranda and Teck, as a consultant in the resource industry. Goad is a director of the NWT and Nunavut Chamber of Mines and has served as president and director of other TSX-listed mineral exploration and development companies.
Patricia Penney - Interim CFO
Patricia Penney is a chartered accountant with 20 years of accounting and audit experience. Before Fortune, she was a senior manager with Caceis Canada., an alternative fund administrator.
Richard Schryer - Vice-president of Regulatory and Environmental Affairs
Richard Schryer is an aquatic scientist with more than 25 years of experience in mine permitting, environmental assessments, environmental studies and monitoring. Schryer also worked with Golder Associates.
Alex Mezei - Chief Metallurgist
Alex Mezei is an independent metallurgical consultant with 40 years of international process engineering experience, providing general and specialized services in metallurgical process flowsheet testing, design, development, derisking and implementation. Mezei has been involved in process economics assessment for several projects. Specific technical expertise includes hydrometallurgy, liquid-solid separation, rheology, and mineral processing. Projects and commodities include extraction of cobalt, lithium, nickel, graphite, manganese, as well as base, rare and precious metals. In addition, Mezei provides specialized expertise in recycling, oil sands and carbon capture projects. Mezei is a Qualified Person for the purposes of National Instrument 43-101.
David Knight - Corporate Secretary
David Knight is a partner with WeirFoulds LLP. David is widely recognized for his more than 30 years of experience. He specializes in securities law, including public and private financings, mergers and acquisitions, stock exchange listings and regulatory compliance and acts for investment dealers and issuers. Knight is a member of the Law Society of Upper Canada.
Troy Nazarewicz - Investor Relations Manager
Troy D. Nazarewicz has 30 years of experience in the capital markets as a portfolio manager with MacDougall, MacDougall & MacTier and in his investor relations role at Fortune. He also worked as a business development manager with a design and marketing firm.
Fortune Minerals Announces Second Draw From Convertible Securities Agreement With The Lind Partners
Fortune Minerals Limited (TSX: FT) (OTCQB: FTMDF) (" Fortune " or the " Company ") ( www.fortuneminerals.com ) is pleased to announce that it has drawn down an additional C$1,575,000 (the " Second Convertible Security ") from its convertible security funding agreement with Lind Global Fund II, LP, managed by The Lind Partners (together, " Lind ") (see news release dated May 22, 2024). The proceeds from this Second Convertible Security drawdown will be used for general working capital purposes and to pre-fund some of the government supported work on the vertically integrated NICO Cobalt-Gold-Bismuth-Copper Critical Minerals Project (" NICO Project ") (see news releases dated, May 16, 2024, and December 5, 2023). Development of the NICO Project would provide a reliable North American supply of cobalt sulphate, gold doré, bismuth ingots, and copper cement enhancing domestic supply chains for three Critical Minerals with a highly liquid and countercyclical gold co-product to mitigate metal price volatility.
The Second Convertible Security has a two-year term, a face value of C$1,890,000 and is secured by a lien against the Company's assets. Lind will be entitled to incrementally convert the face value amount of the Second Convertible Security over a 24-month period, subject to certain limits, at a conversion price equal to 85% of the five-day trailing volume weighted average price of Fortune's shares (" VWAP ") prior to the date of conversion. Commencing 60 days after the shares issuable under this convertible security become free trading, Fortune has the right to repurchase the Second Convertible Security, subject to Lind's option to convert up to one third of the face value into Fortune common shares prior to such repurchase at a conversion price equal to 85% of the 5-day VWAP. Lind will also receive a closing fee of C$60,000 and 16,338,174 common share purchase warrants at an exercise price of $0.0609 per common share for 60 months from the date of issuance after closing.
This press release shall not constitute an offer to sell or solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements.
About The Lind Partners:
The Lind Partners manages institutional funds that are leaders in providing growth capital to small- and mid-cap companies publicly traded in the US, Canada, Australia and the UK. Lind's multi-strategy funds make direct investments ranging from US$1 to US$30 million, invest in syndicated equity placements and selectively buy on market. Having completed more than 200 direct investments totaling over US$2 billion in transaction value, Lind's funds have been flexible and supportive capital partners to investee companies since 2011.
About Fortune Minerals:
Fortune is a Canadian mining company focused on developing the NICO cobalt-gold-bismuth-copper critical minerals project in Canada's Northwest Territories and Alberta. Fortune also owns the satellite Sue-Dianne copper-silver-gold deposit located 25 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.
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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, additional drawdowns under the convertible security funding agreement, use of the second drawdown under the convertible security funding agreement, and the Company's plans to develop the NICO Project. 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: final approval by the TSX in respect of the convertible security funding agreement and related matters; the Company's ability to complete construction of a NICO Project refinery; the Company's ability to arrange the necessary financing to continue operations and develop the NICO Project; the receipt of all necessary regulatory approvals for the construction and operation of the NICO Project, including the planned NICO cobalt-gold-bismuth-copper mine and concentrator and the timing thereof; growth in the demand for cobalt; the time required to construct the NICO Project; and the economic environment in which the Company will operate in the future, including the price of gold, cobalt and other by-product metals, anticipated costs and the volumes of metals to be produced at 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 TSX may not provide final approval in respect of the convertible security funding agreement and related matters, that global geopolitical situations may interfere with the Company's ability to continue development of the NICO Project, the Company may not be able to finance and develop NICO on favourable terms or at all, uncertainties with respect to the receipt or timing of required permits, approvals and agreements for the development of the NICO Project, including the related hydrometallurgical refinery, the construction of the NICO Project may take longer than anticipated, the Company may not be able to secure offtake agreements for the metals to be produced at the NICO Project, the Sue-Dianne Property may not be developed to the point where it can provide mill feed to the NICO Project, the inherent risks involved in the exploration and development of mineral properties and in the mining industry in general, the market for products that use cobalt or bismuth may not grow to the extent anticipated, the future supply of cobalt and bismuth may not be as limited as anticipated, the risk of decreases in the market prices of cobalt, bismuth and other metals to be produced by the NICO Project, discrepancies between actual and estimated Mineral Resources or between actual and estimated metallurgical recoveries, uncertainties associated with estimating Mineral Resources and Reserves and the risk that even if such Mineral Resources prove accurate the risk that such Mineral Resources may not be converted into Mineral Reserves once economic conditions are applied, the Company's production of cobalt, bismuth and other metals may be less than anticipated and other operational and development risks, market risks and regulatory risks. 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241223108910/en/
For further information please contact:
Fortune Minerals Limited
Troy Nazarewicz
Investor Relations Manager
info@fortuneminerals.com
Tel: (519) 858-8188
www.fortuneminerals.com
News Provided by Business Wire via QuoteMedia
Fortune Minerals Retains Worley to Update the NICO Project Feasibility Study and Alberta Site Permitting
NICO Project development advancing with U.S. and Canadian Government financial support
Fortune Minerals Limited (TSX: FT) (OTCQB: FTMDF) (" Fortune " or the " Company ") ( www.fortuneminerals.com ) is pleased to announce that it has retained Worley Canada Services Ltd. (" Worley ") to conduct additional engineering and lead the preparation of an updated Feasibility Study for the NICO Cobalt-Gold-Bismuth-Copper Project in Canada (" NICO Project "). The NICO Project is an advanced Critical Minerals development comprised of a planned mine and concentrator in the Northwest Territories (" NWT ") and a hydrometallurgical recovery plant in Lamont County, Alberta (" Hydrometallurgical Facility ") where concentrates from the mine, and other feed sources, will be processed to value-added products for the energy transition and new technologies. Worley has also been retained to assist with permitting for the Hydrometallurgical Facility, which is planned to be constructed at a brownfield site held under a purchase option arrangement from JFSL Field Services LLC (" JFSL ") (see news release dated, August 19, 2024). Development of the vertically integrated NICO Project would provide a reliable North American supply of cobalt sulphate, gold doré, bismuth ingots, and copper cement produced with supply chain transparency, Canadian Environmental-Social-Governance (" ESG" ) standards, and compliance with the U.S. Inflation Reduction Act (" IRA ").
Fortune was recently awarded ~C$17 million of non-dilutive grants and contribution funding from the U.S. Department of Defense (" DoD "), Natural Resources Canada (" NRCan ") and Alberta Innovates to help finance the work needed to advance the NICO Project to a project finance and construction decision (see news releases dated, May 16, 2024, and December 5, 2023). The funds are supporting metallurgical test work at SGS Canada Inc. (" SGS ") to validate recent process optimizations and flow sheet modifications, update the Feasibility and Front-End Engineering and Design studies for the planned development, permit the Hydrometallurgical Facility, and secure the remaining authorizations, management plans, and satisfy the environmental assessment measures and water license conditions required to construct and operate the NICO mine and concentrator.
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The NICO Project was assessed in a positive Feasibility Study in 2014 by Micon International Limited (" Micon ") but is now out of date. Micon, and P&E Mining Consultants Inc. (" P&E ") who also contributed to the 2014 study, will assist Worley with preparation of the NI 43-101 Technical Report, and the updated Mineral Reserve estimates and Mine Plan for the new Feasibility Study, respectively. Worley's discipline experts have reviewed historical technical data for the NICO Project and have visited the NWT and Alberta sites. The updated Feasibility Study will assess the NICO Project economics at current costs, commodity prices, and currency exchange rates, while also incorporating recent improvements and project optimizations that include:
- Completion of the Tlicho Highway in the NWT, eliminating capital cost redundancies and reducing the construction schedule for the mine and concentrator;
- Incorporation of the new brownfield Alberta site for the Hydrometallurgical Facility and re-purposing of the 42,000 square feet of serviced buildings on 77 acres of lands adjacent to the Canadian National Railway;
- Proximity of the Hydrometallurgical Facility site to services and reagents available in Alberta's Industrial Heartland, such as process and potable water, natural gas, low-cost power, sulphuric acid, oxygen, lime, and a commutable pool of skilled engineers and chemical plant workers;
- Enhanced transportation logistics and reduced concentrate haulage distances between the NWT and Alberta sites;
- A new waste residue disposal strategy for the Hydrometallurgical Facility, including potential sequential precipitation of a saleable gypsum by-product to reduce process residue transportation and disposal costs;
- Incorporation of recent process optimizations to reduce capital and operating costs and assessing the potential for improved metallurgical recoveries from the test work programs in progress at SGS;
- A new Resource Model with more constrained wireframe boundaries to reduce internal and external modelling dilution and providing better differentiation of higher-grade Mineral Resource blocks for earlier processing;
- A new Mine Plan focused on earlier mining and processing of higher margin ores to accelerate cash flows, together with a stockpiling strategy to defer processing lower margin ores;
- Sensitivity analyses for processing other feed sources in the Hydrometallurgical Facility, including intermediate products from the Kennecott Smelter waste streams pursuant to the process collaboration between Fortune and Rio Tinto.
About the NICO Project
The NICO Project is a vertically integrated Critical Minerals asset that Fortune has expended more than C$138 million to advance from an in-house mineral discovery to a near shovel-ready development. The economics for the project were previously assessed in a positive Feasibility Study, and the Company has secured environmental assessment approval and the major mine permits for the facilities in the NWT.
The NICO Deposit is situated in Tlicho Territory, approximately 160 km northwest of the City of Yellowknife and 50 km north of the community of Whati where the new Tlicho Highway currently terminates. The deposit contains open pit and underground Proven and Probable Mineral Reserves totaling 33.1 million tonnes containing 1.11 million ounces of gold, 82.3 million pounds of cobalt, 102.1 million pounds of bismuth, and 27.2 million pounds of copper that are sufficient to support an approximate 20-year mine life. NICO and the Company's nearby Sue-Dianne copper deposit are IOCG-type mineral deposits with world class global analogues, including the ‘super giant' Olympic Dam Deposit in South Australia. IOCG-type deposits are typically very large copper-gold deposits but are notably also enriched in important technology metals.
The NICO Deposit is planned to be mined primarily by conventional truck and shovel open pit methods with a low waste to ore strip ratio. A portion of the higher-grade Mineral Reserves are planned to be mined by underground open stoping methods to accelerate cash flows during early years of the mine life using the existing ramp and underground workings from previous test mining for access and ore haulage.
Ores from the mine will be processed by crushing, grinding and bulk flotation methods with a low (~4%) mass pull that reduces 4,650 tonnes of daily mill throughput to approximately 180 tonnes of bulk concentrate containing the recoverable metals. The bulk concentrate will be subjected to re-grinding and secondary flotation to produce gold-bearing cobalt and bismuth concentrates for low-cost transportation by truck and rail to Alberta and downstream processing to value-added products.
The Hydrometallurgical Facility is planned to be constructed in Lamont County in Alberta's Industrial Heartland, approximately 30 km north of Edmonton, where the municipal planning approvals are already in place for heavy industry. The cobalt concentrate will be processed in an autoclave using pressure-oxidation to dissolve the metals, followed by sequential neutralization, copper cementation, and solvent extraction purification and crystallization of cobalt sulphate heptahydrate. The bismuth concentrate will be processed by ferric chloride leaching, followed by cementation, and smelting to pour pure ingots. Gold will be recovered by leaching the autoclave residue, followed by carbon elution and smelting to doré bars. Test work is underway at SGS to determine if a saleable gypsum by-product can also be produced during sequential neutralization of the autoclave effluent to increase revenues and reduce the amount of waste that would need to be trucked to an offsite disposal facility.
NICO Commodities
NICO is a polymetallic deposit containing three Critical Minerals (cobalt, bismuth and copper) and more than one million ounces of in-situ gold as a highly liquid and countercyclical co-product to mitigate Critical Mineral price volatility.
Cobalt is a particularly important Critical Mineral due to its expanding consumption in the cathodes of lithium-ion rechargeable batteries used in electric vehicles, portable electronics and stationary storage cells. Cobalt is also used in aerospace superalloys, cutting tools, magnets, catalysts and pigments. There are concerns with the current sources of supply for cobalt because of the geographic concentration of mine production in the politically unstable and ESG-challenged Democratic Republic of the Congo (77% of mine supply) and geopolitical risks associated with China's ownership of most of these mines, 80% of the world's refinery production, and 90% of cobalt chemical supply.
Bismuth is another Critical Mineral with a supply chain controlled by China (~80% of the world production). Bismuth has unique physical and chemical properties leveraged to make automotive glass and steel coatings, paints and pigments, and brake pads. It is also used in low melting temperature and dimensionally stable alloys, fire depressants, and pharmaceuticals. Bismuth consumption is increasing as an environmentally safe and non-toxic replacement for lead in brass, solders, free machining steel and aluminum, galvanizing alloys, glass, ceramic glazes, radiation shielding, ammunition, and fishing weights. Bismuth-tin alloy is used to make environmentally safe plugs to properly seal decommissioned oil and gas wells to prevent greenhouse gas leakage, blowouts and groundwater contamination. Manganese-bismuth magnets are also being commercialized as a potential replacement for Rare Earth Elements in the magnets used in electric vehicle powertrain motors.
Fortune will be pleased to provide periodic updates on the progress of its various metallurgical, engineering and permitting programs.
For more detailed information about the NICO Mineral Reserves and certain technical information in this news release, please refer to the Technical Report on the NICO Project, entitled "Technical Report on the Feasibility Study for the NICO-Gold-Cobalt-Bismuth-Copper Project, Northwest Territories, Canada", dated April 2, 2014 and prepared by Micon International Limited which has been filed on SEDAR and is available under the Company's profile at www.sedar.com .
The disclosure of scientific and technical information contained in this news release have been approved by Robin Goad, M.Sc., P.Geo., President and Chief Executive Officer of Fortune and Alex Mezei, M.Sc., P.Eng. Fortune's Chief Metallurgist, who are "Qualified Persons" under National Instrument 43-101.
About Worley Group
Worley is an international engineering, construction management and environmental services company listed for trading on the Australian Stock Exchange.
About Fortune Minerals:
Fortune is a Canadian mining company focused on developing the NICO Cobalt-Gold-Bismuth-Copper Project in the NWT and Alberta. Fortune also owns the satellite Sue-Dianne Copper-Silver-Gold Deposit located 25 km north of the NICO Deposit and a potential future source of incremental mill feed to extend the life of the NICO concentrator.
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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 exercise of the option by the Company and the purchase of the JFSL site, the construction of the proposed Hydrometallurgical Facility at the JFSL site, the potential for expansion of the NICO Deposit and the Company's plans to develop the NICO Project. 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 successful completion of the Company's due diligence investigations on the JFSL site, the Company's ability to secure the necessary financing to fund the exercise of the option and complete the purchase of the JFSL site, the Company's ability to complete construction of a NICO Project Hydrometallurgical Facility; the Company's ability to arrange the necessary financing to continue operations and develop the NICO Project; the receipt of all necessary regulatory approvals for the construction and operation of the NICO Project and the related Hydrometallurgical Facility and the timing thereof; growth in the demand for cobalt; the time required to construct the NICO Project; and the economic environment in which the Company will operate in the future, including the price of gold, cobalt and other by-product metals, anticipated costs and the volumes of metals to be produced at 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 2021 drill program may not result in a meaningful expansion of the NICO Deposit, the Company may not be able to complete the purchase of the JFSL site and secure a site for the construction of a Hydrometallurgical Facility, the Company may not be able to finance and develop NICO on favourable terms or at all, uncertainties with respect to the receipt or timing of required permits, approvals and agreements for the development of the NICO Project, including the related Hydrometallurgical Facility, the construction of the NICO Project may take longer than anticipated, the Company may not be able to secure offtake agreements for the metals to be produced at the NICO Project, the Sue-Dianne Property may not be developed to the point where it can provide mill feed to the NICO Project, the inherent risks involved in the exploration and development of mineral properties and in the mining industry in general, the market for products that use cobalt or bismuth may not grow to the extent anticipated, the future supply of cobalt and bismuth may not be as limited as anticipated, the risk of decreases in the market prices of cobalt, bismuth and other metals to be produced by the NICO Project, discrepancies between actual and estimated Mineral Resources or between actual and estimated metallurgical recoveries, uncertainties associated with estimating Mineral Resources and Reserves and the risk that even if such Mineral Resources prove accurate the risk that such Mineral Resources may not be converted into Mineral Reserves once economic conditions are applied, the Company's production of cobalt, bismuth and other metals may be less than anticipated and other operational and development risks, market risks and regulatory risks. 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241007214068/en/
For further information please contact:
Fortune Minerals Limited
Troy Nazarewicz
Investor Relations Manager
info@fortuneminerals.com
Tel: (519) 858-8188
www.fortuneminerals.com
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Fortune Minerals Completes New Option Agreement to Acquire the JFSL Alberta Refinery Site for the NICO Project
Alex Mezei retained as Chief Metallurgist to supervise test work and process engineering
Fortune Minerals Limited (TSX: FT) (OTCQB: FTMDF) (" Fortune " or the " Company ") ( www.fortuneminerals.com ) is pleased to announce that it has entered into a new option agreement with JFSL Field Services ULC (" JFSL ") to purchase the brownfield industrial site in Lamont County, Alberta where it plans to construct its hydrometallurgical refinery (" Alberta Refinery "). The Alberta Refinery would process metal concentrates from Fortune's planned NICO cobalt-gold-bismuth-copper mine and concentrator in the Northwest Territories (" NWT ") (collectively, the " NICO Project ") and provide a reliable domestic supply of Critical Minerals for the energy transition and other new technologies. The Alberta Refinery will produce cobalt sulphate for the North American lithium-ion battery industry, bismuth ingots (12% of global reserves) and copper cement - with more than one million ounces of in-situ gold as a countercyclical and highly liquid co-product. Fortune also has a process collaboration with Rio Tinto examining the feasibility of processing materials produced from Kennecott Smelter wastes in Utah at the Alberta Refinery to increase cobalt and bismuth production.
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Pursuant to the new option agreement, Fortune can acquire the Lamont County site from JFSL for C$6,000,000 prior to the end of November 2025, provided it makes monthly option payments of C$100,000. The monthly option payments and the C$1,437,500 previously paid by Fortune to JFSL, are deductible from the purchase price. JFSL will be entitled to list the Lamont County property for sale during the option period, subject to Fortune's 90-day right of first refusal to match any third-party offer. JFSL will also be entitled to continue using the Lamont County property and facilities for the eighteen months following a sale to Fortune.
JFSL is a subsidiary of Worley Group (" Worley "), an international engineering, construction management and environmental services company listed for trading on the Australian Stock Exchange. Worley will be the preferred contractor for environmental, engineering, procurement, fabrication and construction work for the Alberta Refinery.
The JFSL site is comprised of 76.78 acres of lands adjacent to the Canadian National Railway in Alberta's Industrial Heartland, an association of five municipalities northeast of Edmonton with planning approvals and tax incentives designed to attract heavy industry. The JFSL site is a former steel fabrication plant with more than 42,000 square feet of serviced shops and buildings situated near the services, sources of reagents, and commutable skilled worker pool already in place for the Alberta petrochemicals industry. These are expected to materially reduce capital and operating costs for the Alberta Refinery during construction and operations.
Fortune is also pleased to announce that Alex Mezei, M.Sc. P.Eng., has joined the Company as Chief Metallurgist. Mr Mezei will supervise the test work and process and design engineering for the NICO Project, which the Company is advancing with the recently announced government contribution funding totalling approximately C$17 million (see news releases dated May 16, 2024 and December 5, 2023). Mr. Mezei is a Chemical Engineer with a more than forty years of diverse experience in international process engineering, test and pilot work, and economic assessments for a broad range of commodities around the world. This includes 22 years at SGS Mineral Services (" SGS ") in Lakefield, Ontario where he was Director, Engineering Technology Services, Metallurgical Operations, and Senior Metallurgist and notably, where he supervised the hydrometallurgical work for the NICO Project. Prior to SGS, Alex worked for Asea Brown Boveri as an instrumentation engineer, as a process research scientist at the Institute for Technological Engineering for Inorganic Chemistry and Nonferrous Metals in Romania, and as a production engineer at the Phoenix Metallurgical-Chemical Plant in Baia-Mare, Romania. Since retiring from SGS in 2016, Alex has worked as an Independent Consulting Metallurgist and Director of Metallurgy for Planetary Technologies.
For more detailed information about the NICO Mineral Reserves and certain technical information in this news release, please refer to the Technical Report on the NICO Project, entitled "Technical Report on the Feasibility Study for the NICO-Gold-Cobalt-Bismuth-Copper Project, Northwest Territories, Canada", dated April 2, 2014 and prepared by Micon International Limited which has been filed on SEDAR and is available under the Company's profile at www.sedar.com .
The disclosure of scientific and technical information contained in this news release has been approved by Robin Goad, M.Sc., P.Geo., President and Chief Executive Officer of Fortune, who is a "Qualified Person" under National Instrument 43-101.
About Fortune Minerals:
Fortune is a Canadian mining company focused on developing the NICO Cobalt-Gold-Bismuth-Copper Project in the NWT and Alberta. Fortune also owns the satellite Sue-Dianne Copper-Silver-Gold Deposit located 25 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.
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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 exercise of the option by the Company and the purchase of the JFSL site, the construction of the proposed hydrometallurgical refinery at the JFSL site, the potential for expansion of the NICO Deposit and the Company's plans to develop the NICO Project. 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 successful completion of the Company's due diligence investigations on the JFSL site, the Company's ability to secure the necessary financing to fund the exercise of the option and complete the purchase of the JFSL site, the Company's ability to complete construction of a NICO Project refinery; the Company's ability to arrange the necessary financing to continue operations and develop the NICO Project; the receipt of all necessary regulatory approvals for the construction and operation of the NICO Project and the related hydrometallurgical refinery and the timing thereof; growth in the demand for cobalt; the time required to construct the NICO Project; and the economic environment in which the Company will operate in the future, including the price of gold, cobalt and other by-product metals, anticipated costs and the volumes of metals to be produced at 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 2021 drill program may not result in a meaningful expansion of the NICO Deposit, the Company may not be able to complete the purchase of the JFSL site and secure a site for the construction of a refinery, the Company may not be able to finance and develop NICO on favourable terms or at all, uncertainties with respect to the receipt or timing of required permits, approvals and agreements for the development of the NICO Project, including the related hydrometallurgical refinery, the construction of the NICO Project may take longer than anticipated, the Company may not be able to secure offtake agreements for the metals to be produced at the NICO Project, the Sue-Dianne Property may not be developed to the point where it can provide mill feed to the NICO Project, the inherent risks involved in the exploration and development of mineral properties and in the mining industry in general, the market for products that use cobalt or bismuth may not grow to the extent anticipated, the future supply of cobalt and bismuth may not be as limited as anticipated, the risk of decreases in the market prices of cobalt, bismuth and other metals to be produced by the NICO Project, discrepancies between actual and estimated Mineral Resources or between actual and estimated metallurgical recoveries, uncertainties associated with estimating Mineral Resources and Reserves and the risk that even if such Mineral Resources prove accurate the risk that such Mineral Resources may not be converted into Mineral Reserves once economic conditions are applied, the Company's production of cobalt, bismuth and other metals may be less than anticipated and other operational and development risks, market risks and regulatory risks. 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240819194865/en/
For further information please contact:
Fortune Minerals Limited
Troy Nazarewicz
Investor Relations Manager
info@fortuneminerals.com
Tel: (519) 858-8188
www.fortuneminerals.com
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Alberta Refinery Site Option for NICO Project Has Expired
Fortune and JFSL remain interested in concluding a transaction under a new arrangement
Fortune Minerals Limited (TSX: FT) (OTCQB: FTMDF) (" Fortune " or the " Company ") ( www.fortuneminerals.com ) announces that the option to purchase the JFSL Field Services ULC (" JFSL ") brownfield industrial site in Lamont County, Alberta could not be completed before the expiry of the option on June 30, 2024. Both, Fortune and JFSL remain willing and able to complete a different transaction that would enable the Company to complete the purchase under a new arrangement as soon as possible. Fortune will provide an update on this plan when its discussions with JFSL have been concluded.
About Fortune Minerals:
Fortune is a Canadian mining company focused on developing the NICO cobalt-gold-bismuth-copper critical minerals project in the NWT and Alberta. Fortune also owns the satellite Sue-Dianne copper-silver-gold deposit located 25 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.
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@FortuneMineral on Twitter.
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 and JFSL's discussions and future plans including any further arrangements. 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 successful negotiations and agreement between the Company and JFSL and the economic environment in which the Company will operate in the future, including the price of gold, cobalt and other by-product metals, anticipated costs and the volumes of metals to be produced at 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 global geopolitical situations may interfere with the Company's ability to successfully negotiate with JFSL, the inherent risks involved in the exploration and development of mineral properties and in the mining industry in general, the market for products that use cobalt or bismuth may not grow to the extent anticipated, the future supply of cobalt and bismuth may not be as limited as anticipated, the risk of decreases in the market prices of cobalt, bismuth and other metals to be produced by the NICO Project, discrepancies between actual and estimated Mineral Resources or between actual and estimated metallurgical recoveries, uncertainties associated with estimating Mineral Resources and Reserves and the risk that even if such Mineral Resources prove accurate the risk that such Mineral Resources may not be converted into Mineral Reserves once economic conditions are applied, the Company's production of cobalt, bismuth and other metals may be less than anticipated and other operational and development risks, market risks and regulatory risks. 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240701842400/en/
Fortune Minerals Limited
Troy Nazarewicz
Investor Relations Manager
info@fortuneminerals.com
Tel: (519) 858-8188
www.fortuneminerals.com
News Provided by Business Wire via QuoteMedia
Fortune Minerals Announces Results of Annual Meeting of Shareholders
Fortune Minerals Limited (TSX: FT) (OTCQB: FTMDF) ("Fortune" or the "Company") ( www.fortuneminerals.com ) reports that the nominees listed in the management information circular for the 2024 Annual Meeting of Shareholders held on June 25, 2024 (the "Meeting") were elected as directors of Fortune. Detailed results of the vote based on proxies received are set out below:
Nominee |
Shareholders also approved the appointment of McGovern Hurley LLP as the auditor of Fortune.
About Fortune Minerals:
Fortune is a Canadian mining company focused on developing the NICO cobalt-gold-bismuth-copper critical minerals project in the NWT and Alberta. Fortune also owns the satellite Sue-Dianne copper-silver-gold deposit located 25 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.
Follow Fortune Minerals:
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@FortuneMineral on Twitter.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240626891223/en/
For further information please contact:
Fortune Minerals Limited
Troy Nazarewicz
Investor Relations Manager
info@fortuneminerals.com
Tel: (519) 858-8188
www.fortuneminerals.com
News Provided by Business Wire via QuoteMedia
Glencore's Lomas Bayas Partners with Ceibo to Accelerate Access to Clean Copper
Following a two-year study, Glencore to scale the use of Ceibo's sulfide leaching technology that significantly improves copper recovery
Ceibo , a clean copper extraction technology company, and Glencore ‘s (GB:GLEN) Lomas Bayas Mining Company have entered into a partnership to deploy Ceibo's proprietary leaching technologies that enable a more effective extraction of copper from low-grade sulfides at one of Chile's leading mines. Lomas Bayas has validated Ceibo's technology and is moving toward scaling up to assess this as an alternative to extend the life of their mining operations. This partnership follows two years of testing by Glencore, an important contributor to Chile's position as the world's largest copper producer.
Under the terms of the memorandum of understanding, Ceibo's technology will scale up with on-site testing through the Lomas Lab, a Glencore world-scale test site, and the company's research and development branch. This agreement opens a significant commercial avenue for Ceibo, demonstrating its unique approach with a major mining company and affirming the value that Ceibo's advanced leaching technologies bring to copper assets globally.
Lomas Bayas is known for its focus on innovative and efficient new solutions. Through this partnership, they will be able to further capitalize on their copper reserves by increasing and optimizing extraction. It also positions Lomas Bayas at the vanguard of sustainable mining by increasing the volume of copper while simultaneously minimizing the impact. Lomas Bayas strives to maximize technologies that allow the production of copper cathodes from sulfide species containing chalcopyrite, with the goal of extending the life cycle of their mine.
Ceibo's leaching processes extract copper in all sulfides using existing leaching plants. This process more quickly and effectively catalyzes the oxidation in the ore through electrochemical reactions, resulting in higher recovery rates in shorter operational cycles. In recent industrial testing on over 20 chalcopyrite-rich ores, the technology has recovered over 75% of copper, a significant increase compared to traditional leaching. Ceibo's technologies can be used in many ways, including increasing the output of existing operations, extending the life of a mine, and enabling new brownfield and greenfield projects.
"We are excited to expand our partnership with Ceibo to scale an innovative technology that can transform the copper industry. Ceibo's ability to produce copper from sulfide-rich ores brings a huge value for assets like Lomas Bayas to sustain production while transitioning from oxides to sulfides," said Pablo Carvallo, General Manager of Lomas Bayas. "This increase will help us maximize our production to service growing worldwide demand."
"The copper industry is facing increased demand alongside environmental standards," said Cristobal Undurraga, co-founder and CEO of Ceibo. "We are thrilled to have such an innovative partner in Glencore's Lomas Bayas, who is at the forefront of adopting new technologies. Together, we are proving that our advanced leaching technologies are allowing the extraction of even more copper from the existing operation while significantly improving sustainability – all while we meet the urgent global need for copper in the clean energy transition."
With demand for copper surging worldwide, this partnership provides a mining industry template for how to immediately increase copper production by significantly extending the life and capacity of mine operations. Ceibo's technologies greatly reduce the implementation time and resource consumption of traditional production methods such as concentrators and smelting, which require many years to build and secure permit approvals and are burdened by an extreme reliance on water and energy.
About Ceibo
Ceibo is accelerating access to copper with its clean, innovative technologies that bridge the supply-demand gap to further the energy transition. Founded in 2021, with dual headquarters in the US and Chile, Ceibo brings together a diverse team of scientists, metallurgists, engineers, and operators with a common passion for using technology to advance net zero goals. For more information, please visit www.ceibo.tech . Media enquiries: ceibo@consortpartners.com
About Glencore in Chile
Glencore is engaged in the production and marketing of raw materials such as copper, sulfuric acid, and molybdenum. In Chile, it operates in the Antofagasta region, including Compañía Minera Lomas Bayas and the Altonorte Metallurgical Complex, and holds a 44% stake in Compañía Minera Doña Inés de Collahuasi.
About Glencore
Glencore is one of the world's largest diversified natural resource companies, with more than 150,000 employees and contractors in over 35 countries. The company produces, processes, recycles, and markets more than 60 commodities that support decarbonization and meet current energy needs.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241120482815/en/
Media Contact
Consort Partners for Ceibo
ceibo@consortpartners.com
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