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Fortune Minerals
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 critical minerals play with significant gold reserves.
Overview
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 project includes a proposed mine and mill in the Northwest Territories that will produce bulk concentrates that will be shipped to a planned refinery in Alberta. The concentrates from the mine will then be processed into energy and eco-metals for the growing clean energy economy.
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 more than 469,000 metric tons by 2034, with the EV segment accounting for most of the growth.
Meanwhile, bismuth’s unique physical and chemical properties are difficult to substitute with other metals. Bismuth is used in automotive glass and steel coatings, paints and pigments, and brake pads. It is also used to make low-melting-temperature and dimensionally stable alloys and compounds, fire suppressant systems, cosmetics and pharmaceuticals. Bismuth consumption is increasing as an environmentally safe and non-toxic replacement for lead in brass, solder, free machining steel and aluminum, galvanizing alloys, glass, ceramic glazes and ammunition.
Bismuth-tin alloy is used to make environmentally safe plugs to properly seal decommissioned oil and gas wells. Bismuth is also used in high performance semiconductors, artificial intelligence data centers and supercomputers. Manganese-bismuth magnets are resistant to demagnetization from heat. In the nuclear industry, bismuth is used for radiation shielding, coolants in some reactor designs, and it is a collector for plutonium in fuel re-processing and enrichment. China controls ~80 percent of current bismuth mine production and ~90 percent of refinery supply in an annual market of ~23,000 metric tonnes.
Aerial view of the NICO project site
While NICO is primarily a cobalt deposit, it is also the largest known deposit of bismuth in the world, with about 12 percent of global reserves. Bismuth is a critical mineral that China has imposed export restrictions on and is essential for AI.
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
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 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 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 a 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 has secured a total of C$17.5 million in 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, and contains 12 percent of global bismuth reserves- another important critical mineral
- 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. This includes the $200 million Tlicho all-season highway project to Whati and more than $17.5 million in Canadian and US government funding for advancing the NICO project.
- Collaboration with Rio Tinto to assess options to improve recovery of bismuth and cobalt contained in Rio Tinto’s Kennecott smelter waste streams.
- An experienced management team leads Fortune Minerals towards fully developing and capitalizing on its assets.
Key Project
NICO Cobalt Project and Reserves
The NICO project is a vertically integrated critical minerals development in Canada, owned 100 percent by Fortune Minerals. It is located in the Northwest Territories (NWT), approximately 160 km northwest of Yellowknife and 50 km from Whati. The project includes a planned mine and concentrator, supported by a proposed hydrometallurgical refinery in Lamont County, Alberta.
NICO is classified as an iron oxide-copper-gold (IOCG)-type deposit and hosts significant reserves of cobalt, gold, bismuth and copper. The mineral reserves for the NICO deposit were estimated in compliance with NI-43-101 and total 33.1 Mt, containing 82.3 Mlbs (37,341 tons) of cobalt, 1.1 Moz of gold, 102.1 Mlbs (46,325 tons) of bismuth and 27.2 Mlbs (12,296 tons) of copper. These reserves support a projected 20-year mine life at a processing rate of 4,650 tons per day. Cobalt production is expected to average 1,800 tons per year during the first 14 years.
More than C$145 million has been invested to date in technical, environmental and social studies. The project has received environmental assessment approval and all major mine permits. The all-season, government-funded Tlicho Highway is now operational, and Fortune has EA approval for a 50-kilometer spur road to connect the mine site to the Tlicho Highway and a new rail transload terminal at Enterprise, NWT, enabling efficient transport of concentrate to its Alberta refinery.
Proposed hydrometallurgical processing plant in Lamont County, Alberta
Project Highlights:
- Excellent Infrastructure: All-season road access via the $200-million Tlicho Highway; 50-kilometer spur road EA-approved; proximity to Snare hydro complex and electrical grid.
- Strategic Transport Links: Ability to truck concentrates to the new rail terminal at Enterprise for delivery to the Alberta refinery.
- Large, Well-defined Deposit: NICO and Sue-Dianne are IOCG-type deposits with significant expansion potential.
- Exploratory Drilling Success: 2021 drill results confirmed additional zones with high-grade cobalt, gold, and bismuth.
- Feasibility and Engineering Advancements: Updated study by Worley to include project optimizations, cost updates and refined processing plans.
- Refinery Site Secured: Option agreement in place for a brownfield site in Lamont County, Alberta for value-added critical mineral processing.
- Strategic Partnerships: Ongoing collaboration with Rio Tinto for secondary feedstock and metallurgical recovery improvements.
The Alberta refinery site is secured under option and is located on a brownfield industrial property near CN Rail. It benefits from proximity to skilled labor, utilities and existing infrastructure.
The project is advancing toward a construction decision, supported by more than C$17.5 million in funding from Canadian and US government critical minerals programs.
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.
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. 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.
Battery-grade cobalt for the electric transition with gold co-production and 12 percent of global bismuth reserves
Fortune Minerals Announces New Convertible Security Agreement With the Lind Partners
Fortune Minerals Limited (TSX: FT,OTC:FTMDF) (OTCQB: FTMDF) (" Fortune " or the " Company ") ( www.fortuneminerals.com ) is pleased to announce that it has entered into a new convertible security funding agreement (" Funding Agreement ") with Lind Global Fund III, LP, an entity managed by The Lind Partners (together, " Lind ") pursuant to which the Company has agreed to draw down C$3,155,000 in exchange for the issuance of a convertible security to Lind (the " Convertible Security ").
The proceeds from the issuance of the Convertible Security will be used for general working capital purposes and to pre-pay and partially match the costs for government supported work programs currently underway for the vertically integrated NICO Cobalt-Gold-Bismuth-Copper Critical Minerals Project (" NICO Project ") (see news releases dated, May 16, 2024, and December 5, 2023). Fortune is working closely with the Government of Canada, the Government of the United States and the Government of Alberta to expand North American critical minerals production and enhance domestic supply chain resilience and security. The Company has been awarded ~C$17 million of non-dilutive contribution funding from the U.S. Department of Defense through its Defense Production Act Title III program, Natural Resources Canada's Global Partnerships Initiative and Critical Minerals Research Development and Demonstration programs, and Alberta Innovates Clean Resource Intake program. These funds are helping advance the NICO Project toward a construction decision and 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 Convertible Security will have a two-year term, with a face value (" Face Value ") of C$3,774,000 and is secured by a lien against the Company's mining assets. Lind will be entitled to incrementally convert the Face Value amount of the 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 (" VWAP ") of Fortune's common shares (" Common Shares ") prior to the date of conversion. Commencing 60 days following the date on which Lind advances the funds pursuant to the Convertible Security to the Company, Fortune will have the right to repurchase the Convertible Security, subject to Lind's option to convert up to one third of the Face Value into 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$120,000 and 15,641,293 Common Share purchase warrants exercisable at an exercise price of $0.1141 per Common Share for 60 months from the date of closing.
The Toronto Stock Exchange (the " TSX ") has provided conditional approval in respect of the issuance of the Convertible Security.
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 vertically integrated NICO cobalt-gold-bismuth-copper critical minerals project in Canada. The NICO project is a development stage asset consisting of a planned mine and concentrator in the Northwest Territories and a dedicated hydrometallurgical facility in Alberta's Industrial Heartland Association north of Edmonton. Fortune also owns the Sue-Dianne copper-silver-gold satellite 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, issuance of the Convertible Security pursuant to the 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 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 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/20250730234914/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 2025 Annual Meeting of Shareholders held on June 24, 2025 (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 re-appointment of McGovern Hurley LLP as the auditor of Fortune. The presentation made at the Annual Meeting is available on the Company's website.
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:
Click here to subscribe to Fortune's email list.
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@FortuneMineral on Twitter.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250625199390/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 Reports Successful NICO Project Bismuth Test Work Results for the Planned Alberta Refinery
Smaller and simpler bismuth circuit with high metal recoveries align with new market demand
Fortune Minerals Limited (TSX: FT) (OTCQB: FTMDF) (" Fortune " or the " Company ") ( www.fortuneminerals.com ) is pleased to report that metallurgical test work validation is essentially complete for the bismuth circuits for the Company's 100% owned NICO cobalt-gold-bismuth-copper critical minerals project in Canada (" NICO Project "). The Process Design Criteria has been compiled and delivered to Worley Canada Services Ltd. (" Worley ") to engineer the facilities and incorporate them into the Company's updated Feasibility Study. With 12% of global bismuth reserves, development of the NICO Project aligns with the increasing demand for bismuth in traditional and new market applications and the historic high prices (~US$ 27 per pound), compounded by China's recent export restrictions on this, and other critical minerals.
The vertically integrated NICO Project consists of a planned mine and concentrator in the Northwest Territories (" NWT ") and a hydrometallurgical process facility in Lamont County, Alberta where concentrates from the mine, and other feed sources, will be processed to value-added products needed in diverse industries, the energy transition, new technologies, and defense. Development of the NICO Project will provide a reliable North American supply of cobalt sulphate, gold doré, bismuth ingots, and copper cement enhancing domestic production of three critical minerals. The 1.1 million ounces of in-situ gold in the NICO Project Mineral Reserves is also a highly liquid and countercyclical co-product to mitigate metal price volatility.
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Bismuth Process Highlights
- Improved bismuth leaching and cementation circuits with an expected reduction in capital and operating costs and higher metal recoveries
- Efficient and cost-effective regeneration of ferric chloride lixiviant used to leach bismuth prior to cementation to reduce reagent costs and safely dispose of excess process water
- Validation of high-quality 4N bismuth ingot production from smelting and refining bismuth cement
- Positive preliminary test results from blending Fortune bismuth concentrate and Rio Tinto bismuth oxychloride with no adverse impacts on product quality or metal recovery
- Historic high bismuth prices from increasing demand and restricted supply
Test Work Results
Fortune has completed the hydrometallurgical phase of its test work program for the NICO Project bismuth circuit at SGS Canada Ltd. (" SGS ") in Lakefield, Ontario. The scope for this program was validation of the leaching, cementation and lixiviant regeneration unit operations, and compilation of the Process Design Criteria for detailed engineering. The results exceeded the Company's expectations, supporting a material reduction in the bismuth circuit size and the expected capital and operating costs at the planned Alberta hydrometallurgical facility.
Bismuth recovery in cement was ~98% after factoring in the ferric chloride leaching, washing and iron cementation efficiencies, compared with lower initial recovery targets. The bismuth cement produced averaged ~95% bismuth, rendering it suitable for smelting and subsequent refining to high-purity metal ingots. Ferric chloride leaching was optimized to a single-stage configuration, resulting in an ~65% volume reduction for the equipment. Cementation using iron powder was also optimized to a single stage configuration, resulting in an ~75% equipment volume reduction. The work also proved that the ferric chloride lixiviant used to leach the bismuth can be regenerated using chlorine with ~95% oxidation efficiency, consistent with well-established industrial processes. Therefore, the process streams can be recycled to save reagent costs while also allowing for safe disposal of the excess process water.
Exploratory testing of Rio Tinto bismuth oxychloride blended with Fortune bismuth concentrate at the estimated production ratio during operations produced a high quality bismuth cement with no adverse impacts on recoveries. Additional work is planned in collaboration with Rio Tinto aiming to maximize the blend-ratio and overall product output. The Rio Tinto feed is produced from waste streams at the Kennecott Smelter in Utah enhancing its goals for total orebody effectiveness and supporting domestic critical minerals production.
Fortune retained XPS Industry Relevant Solutions (" XPS ") to conduct the bismuth smelting and refining test work for the pyrometallurgical circuits for the Alberta facility. Bismuth cement samples produced at SGS were submitted for pyrometallurgical testing to prove the production of 99.99% (" 4N ") bismuth ingots, the desired specification for many metal applications as well as for making bismuth oxide and other chemicals. A crude ingot was initially produced assaying 99.8% bismuth (" 2N "), which was subsequently refined with liquation, sulphuration and chlorination steps to increase the purity and achieve the 99.99% bismuth (" 4N ") target grade. The pyrometallurgical investigation is nearing completion, pending the results of a second series of smelting and refining tests and receipt of the final report with the Process Design Criteria needed for the Feasibility Study.
Government Support
Fortune is working with the Canadian and U.S. governments to expand domestic critical minerals production and enhance North American supply chain resilience and security. The Company has been awarded ~C$17 million of non-dilutive contribution funding from the U.S. Department of Defense through its Defense Production Act Title III program, Natural Resources Canada's Global Partnerships Initiative and Critical Minerals Research Development and Demonstration programs, and Alberta Innovates Clean Resource Intake program. This financial support is helping Fortune advance the NICO Project to a project finance and construction decision (see news releases dated, May 16, 2024, and December 5, 2023). Specifically, the funds are supporting metallurgical test work to validate process improvements, update the Feasibility and Front-End Engineering and Design (" FEED ") studies, and secure the remaining permits and authorizations needed to construct and operate the mine and concentrator in the NWT and hydrometallurgical facility in Alberta.
About Bismuth
The NICO Project contains four payable metals, including the largest known resource of bismuth in the world. Bismuth has unique physical and chemical properties that are essential for important industrial and technological uses, but the supply chains are vulnerable to disruption because China controls over ~90% of refined bismuth supply. Consequently, bismuth is identified on both the Canadian and U.S. government's Critical Minerals Lists. Notably, China recently imposed controls over the export of bismuth and other critical minerals resulting in shortages of supply and a precipitous increase in price.
Bismuth is widely used in the automotive industry for glass and steel coatings, paints and pigments and abrasives used in brake pads. It is also used in low melting temperature and dimensionally stable alloys and compounds, fire depressant sprinkler systems, cosmetics and pharmaceuticals. Bismuth consumption is increasing primarily as an environmentally safe and non-toxic replacement for lead in brass, solder, free machining steel and aluminum, glass, radiation shielding, ceramic glazes and ammunition. Bismuth-tin alloy is used to make environmentally safe plugs to properly seal decommissioned oil and gas wells, preventing greenhouse gas leakage, blowouts and groundwater migration that can contaminate aquifers. Bismuth is also used in high performance semiconductors and manganese-bismuth magnets that are resistant to demagnetization from heat and are a potential replacement for rare earth elements in electric motors, including electric vehicle powertrains. In the nuclear industry, bismuth coolants are used in some reactor designs and to make radiation shielding with unique gamma ray blocking properties. The dimensional stability of bismuth alloys is also used to align jet engine turbine blades and for lens blocking.
About the NICO Project
Fortune has expended approximately C$145 million to advance the NICO Project from an in-house mineral discovery to a near construction-ready development asset with environmental assessment approval and the major mine permits already secured in the NWT. NICO and the Company's nearby Sue-Dianne copper deposit are IOCG-type mineral deposits with multiple payable metals, reducing the Company's vulnerability to price volatility or market manipulation of any single metal. The Open Pit and Underground Mineral Reserves for the NICO deposit contain 33.1 million metric tonnes of ore containing 1.1 million ounces of gold, 82.3 million pounds of cobalt, 102.1 million pounds of bismuth and 27.2 million pounds of copper. Development of the NICO Project would provide a vertically integrated domestic supply of three critical minerals and gold with custody control of the metals from ore through to the production of value-added products to help diversify the supply chains from foreign entities of concern.
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 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 Sue-Dianne copper-silver-gold satellite 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.
Follow Fortune Minerals:
Click here to subscribe to Fortune's email list.
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@FortuneMineral on X.
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 construction of the proposed mine and concentrator in the NWT and the hydrometallurgical process facility in Alberta, 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 updated feasibility study, the Company's ability to secure the necessary financing to fund the working capital required for the government funded work, the Company's ability to complete construction of a NICO Project hydrometallurgical process 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 process facility and the timing thereof; growth in the demand for bismuth; 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, bismuth 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 Company may not be able to complete the metallurgical test work to validate process improvements, update the Feasibility and FEED studies and secure the remaining permits and authorizations needed to construct and operate the mine, concentrator in the NWT and hydrometallurgical facility in Alberta, the Company may not achieve the anticipated reductions in capital and operating costs for the bismuth circuit, 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 process 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/20250509583965/en/
For further information:
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 Provides NICO Project Commodity Update
Bismuth prices have tripled in recent weeks, gold prices are at an all-time high, and the Congo has placed a moratorium on the export of cobalt to support higher prices
Fortune Minerals Limited (TSX: FT) (OTCQB: FTMDF) (" Fortune " or the " Company ") ( www.fortuneminerals.com ) is pleased to comment on the recent commodity price activity for the metals contained in its vertically integrated NICO cobalt-gold-bismuth-copper critical minerals project (" NICO Project ") in Canada. The NICO Project is a development stage asset comprised of a planned open pit and underground mine and concentrator in the Northwest Territories (" NWT ") and a dedicated hydrometallurgical recovery plant in Lamont County, Alberta (" Hydrometallurgical Facility "). The Hydrometallurgical Facility will process concentrates from the mine, and other feed sources, to produce value-added metals and chemicals for the energy transition, new technologies and defense. 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 and a highly liquid and countercyclical gold co-product to mitigate metal price volatility.
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The Mineral Reserves for the NICO Deposit are 33.1 million metric tonnes containing 1.1 million ounces of gold, 82.3 million pounds of cobalt, 102.1 million pounds of bismuth (12% of global reserves) and 27.2 million pounds of copper to support a 20-year planned mine life. The Company also owns the Sue-Dianne satellite copper deposit, located 25 km north of the NICO Deposit.
Gold price approaching US$3,000 per ounce
Recent geopolitical issues and trade disputes are inflationary, resulting in higher demand for safe haven assets like gold. Gold has been trading at historic all-time high prices of more than US$2,900 per ounce, providing a highly liquid co-product to help insulate project economics from critical mineral price volatility.
Bismuth price up more than 300% to a 17-year high
The projected revenues from the NICO Project have historically been primarily from cobalt and gold but NICO is also the largest deposit of bismuth in the world with 12% of global reserves. The bismuth price has more than tripled over the past few weeks and is currently trading at prices of more than US$20 per pound. Bismuth is identified on the Canadian and U.S. Government Critical Minerals Lists having unique physical and chemical properties used in important industrial, environmental and defense applications but with supply chains that are vulnerable to disruption. China controls approximately 90% of refined bismuth supply, which threatens national security from geographic concentration of production and policy risks. Notably, Bismuth is one of five critical minerals that China recently imposed export restrictions on due to ongoing trade disputes with the U.S. China's bismuth exports to the U.S. are assessed with a 25% tariff.
Bismuth is consumed in the automotive industry for glass and steel coatings, paint and brake pads. It is also used to make low melting temperature and dimensionally stable alloys, fire depressant systems, cosmetics and pharmaceuticals. Bismuth consumption is increasing as an environmentally safe and non-toxic replacement for lead in brass, solder, free machining steel and aluminum, glass, radiation shielding, ceramic glazes and ammunition. Bismuth-tin alloy is used to make environmentally safe plugs to properly seal and decommission oil and gas wells. Bismuth is also used to make manganese-bismuth magnets, semi-conductors, coolants and components used in some nuclear reactor designs, rocket propellants, and alloys used to align jet engine and power turbine blades.
Cobalt export moratorium in the Democratic Republic of Congo
On February 22, 2025, the Democratic Republic of Congo (" DRC ") announced that it is suspending cobalt exports for four months to rein in oversupply on the international market. The government is also preparing other measures to help balance the market and encourage domestic processing. The DRC produces about three-quarters of the world's cobalt mine supply, approximately 60% of which is controlled by Chinese State-Owned Enterprises (" SOE's "), which also control 80% of global refined cobalt and 90% of cobalt chemical supply. Overproduction and predatory pricing have pushed cobalt to all-time inflation adjusted low prices near US$10 per pound, down from US$40 per pound in 2022, and causing some western producers to suspend operations. Western governments have therefore been calling for price control actions such as floor or two-tier pricing structures, tariffs, and/or bans on government purchases of cobalt products from foreign entities of concern. The DRC measures are expected to support higher cobalt prices and help restore economic fundamentals to the market.
Cobalt is primarily used to make lithium-ion batteries to store energy for electric-vehicles, portable electronics and stationary storage cells. Cobalt is also used in superalloys for the aerospace industry, cutting tools, cemented carbides, magnets, catalysts and pigments.
NICO Project
NICO is a polymetallic IOCG-type deposit with four payable metals, reducing exposure to the price of any individual metal and help insulate the project from price manipulation. As a vertically integrated development, the NICO Project is also not beholden to third-party owned downstream process plants. Development of the NICO Project would provide a vertically integrated domestic supply of three critical minerals with supply chain transparency and custody control over the contained metals from ores through to the production of value-added products and help mitigate security of supply issues from foreign entities of concern.
PDAC 2025
Fortune is participating at the 2025 annual Prospectors and Developers Association Convention (" PDAC ") being held at the Metro Toronto Convention Centre between March 2 and March 5, 2025. Please visit the Company's booth #2837 in the Investor Exchange to meet with management and discuss the Company's progress and outlook.
President and CEO, Robin Goad, will present the NICO Project at the Canada Investment Forum hosted by Natural Resources Canada, Invest in Canada, and Global Affairs Canada on Monday March 3 rd . Mr. Goad is also participating in a panel discussion hosted by the U.S. Department of Commerce for their " Critical Minerals to Market: Strengthening North American Critical Minerals Supply Chains " in an off-site closed-door session.
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.sedarplus.ca .
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 Fortune Minerals
Fortune is a Canadian mining company focused on developing the NICO cobalt-gold-bismuth-copper project in the 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 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 in order to construct 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, bismuth, and other by-products, 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 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.
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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 Provides an Update of NICO Project Test Work, Rio Tinto Process Collaboration & Feasibility Study
The Company is advancing the NICO Project toward a construction decision with U.S. & Canadian Government financial support from critical minerals supply chain security programs
Fortune Minerals Limited (TSX: FT) (OTCQB: FTMDF) (" Fortune " or the " Company ") ( www.fortuneminerals.com ) is pleased to provide an update of ongoing work on the vertically integrated NICO cobalt-gold-bismuth-copper critical minerals project in Canada (" NICO Project "). The NICO Project is comprised of a planned mine and concentrator in the Northwest Territories (" NWT ") and a hydrometallurgical processing facility in Lamont County, Alberta where concentrates from the mine, and other feed sources, will be processed to value-added products needed for the energy transition, new technologies and defense. Fortune has been awarded ~C$17 million of non-dilutive contribution funding from the U.S. Department of Defense (" DoD "), Natural Resources Canada (" NRCan "), and Alberta Innovates to help finance the work needed to bring the NICO Project to a project finance and construction decision (see news releases dated, December 5, 2023, and May 16, 2024). Development of the NICO Project would provide a reliable North American supply of cobalt sulphate, gold doré, bismuth ingots, and copper precipitate enhancing domestic supply chains for three metals identified on the Canadian and U.S. Government critical minerals lists and a highly liquid and countercyclical gold co-product to mitigate metal price volatility.
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Highlights
- U.S. & Canadian Government supported test work, engineering, updated Feasibility Study & permitting programs progressing
- New comminution & flotation circuit designs to reduce capital & operating costs
- Concentrator modifications to improve gold, bismuth & cobalt recoveries
- Smaller hydrometallurgical bismuth circuit with lower capital costs & higher recoveries
- Successful leaching & cementation of blended Rio Tinto & Fortune bismuth streams
Feasibility Study Update
Fortune retained Worley Canada Services Ltd. (" Worley ") to lead the engineering for an updated Feasibility Study assessing the economics of the NICO Project at current costs and commodity prices. Worley is also assisting Fortune with permitting for the brownfield site in Lamont County, Alberta where the Company plans to construct its hydrometallurgical facility. The NICO Project was previously assessed in a positive Feasibility Study by Micon International Limited (" Micon ") in 2014 but is now out of date. Micon, P&E Mining Consultants Inc. (" P&E ") and WSP Golder, who participated in the 2014 study, are also engaged to assist Worley with preparation of the updated study and NI 43-101 Technical Report. The Feasibility Study is being supported with funding from the U.S. DoD and NRCan's Global Partnerships Initiative (" GPI ") contribution funding.
The updated Feasibility Study will incorporate a number of improvements to the NICO Project identified by Fortune and Worley to deliver a more financially robust development. These include: the superior brownfield Alberta hydrometallurgical facility site with existing buildings; the new Tlicho Highway to Whati, NWT; a new geological block model with more constrained ore zone boundaries to reduce modelling dilution and better differentiate high-grade resource blocks for earlier processing; a new mine plan and production schedule with a stockpiling strategy to accelerate the processing of higher margin ores and reduce near-surface waste rock stripping; better equipment choices; and process optimizations from recent test work.
Worley has completed value enhancement studies improving the grinding and comminution, and flotation circuits for the planned concentrator in the NWT. A High-Pressure Grinding Rolls (" HPGR ") and vertical mills will replace parts of the previously designed circuit and ball mill with an anticipated ~C$7 million reduction in capital costs and ~C$1.3 million reduction in annual operating costs from a smaller plant footprint utilizing more energy efficient equipment. HPGR variability tests are in progress at SGS Canada Inc. (" SGS ") in Lakefield, Ontario to provide additional data for the detailed design.
Worley has also reviewed the Company's historical flotation test work and piloting information and has identified opportunities using Jameson flotation cells to recover additional fine, 5- to 20-micron sized gold and bismuth particles contained in NICO deposit ores. Jameson cell tests were completed at SGS at a finer (minus 44-micron) grind size and the Company is pleased to report that these tests have confirmed an improvement in gold, bismuth and cobalt recoveries for the concentrator. A carbon column is also being designed into the secondary flotation circuit to capture the ~5% of contained gold that previously would have been dissolved and lost in the process water during bismuth and cobalt separation. Fortune is also investigating other options to reduce potential gold losses during the processing of high-grade, gold-rich ores.
Worley has also completed a minor realignment of the NICO access road design to reduce construction costs and has also completed the process flow diagrams, piping and instrumentation diagrams, and mass balance for the NWT concentrator. As part of the ongoing Feasibility Study improvements, Worley is also working on updated concentrator and hydrometallurgical facility designs to advance the vertically integrated development.
Test Work Update
Fortune collected between 15 and 16 metric tonnes of ores from its earlier test mining stockpiles at the NICO mine site and shipped this material to SGS for metallurgical test work and piloting. The test work is being financially supported with contribution funding from NRCan's GPI and a $715,000 award in 2023 from the Critical Minerals Research Development and Demonstration (" CMRDD "), with additional financial support coming from Alberta Innovates' Clean Resources Continuous Intake Program and the U.S. DoD. Phase 2 of the program, consisting of crushing, grinding and bulk and secondary flotation was successfully completed in Q3, 2024, producing gold-bearing cobalt and bismuth concentrates for hydrometallurgical testing.
The Phase 3 hydrometallurgical work is in progress and the results achieved to date are exceeding the Company's expectations. Ferric chloride leaching of bismuth concentrate followed by cementation and purification test work achieved 97% bismuth recoveries, producing a cement grading up to 95% bismuth, and averaging about 0.2% iron as the main impurity. The data was used to support the bismuth circuit process design criteria on the basis of a 66% reduction of the leaching residence time, from three hours to one hour. Overall, the design criteria are predictive of a significant material reduction in the size, capital and operating costs for the bismuth circuit for the hydrometallurgical plant. The results are also predictive of about a 2% higher bismuth recovery than initially estimated for the bismuth leaching and cementation circuits. Fortune has retained XPS Industry Relevant Solutions to conduct the smelting and refining parts of the bismuth test work and complete the design of the bismuth pyrometallurgical circuit.
A preliminary pressure oxidation (" POX ") test on the cobalt concentrate was recently completed, but more comprehensive cobalt processing tests will be carried out in the first quarter of 2025. The cobalt test work will also include a value enhancement optimization of sequential gypsum precipitation to validate the production of a gypsum by-product from the autoclave effluent. If successful, a saleable gypsum by-product would provide a material improvement to the hydrometallurgical facility overall revenues and reduce waste disposal costs for the process residue.
Rio Tinto Process Collaboration
Fortune has a process collaboration agreement with Rio Tinto investigating the feasibility of recovering additional cobalt and bismuth at the Alberta hydrometallurgical facility by processing precipitates produced from Kennecott smelter wastes in Utah. Rio Tinto successfully generated a high-grade bismuth oxychloride intermediate from its Utah process streams and shipped samples of this material to SGS for testing using Fortune's process criteria as well as blending with NICO bismuth concentrates. Leaching and cementation tests carried out on the Rio Tinto material blended with NICO bismuth concentrate were very successful, validating no material change in bismuth recoveries or metallurgical performance relative to treating unblended NICO bismuth concentrate. The feasibility of processing Rio Tinto material at the Alberta Hydrometallurgical facility has therefore been confirmed and additional work is planned by both companies to advance the collaboration. These blending validation studies are financially supported by NRCan's GPI contribution funding and the U.S. DoD.
About the NICO Project
Fortune has expended approximately C$140 million to advance the NICO Project from an in-house mineral discovery to a near construction-ready development. The Company has secured the environmental assessment approval and the major mine permits for the facilities in the NWT and the municipal planning approvals for the Alberta hydrometallurgical facility. Additional permitting is required at both sites and is in progress with partial funding support from the U.S. DoD.
The NICO deposit and planned mine 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. A spur road from Whati is planned as part of the development to enable trucking concentrates to the railhead at Enterprise, NWT for delivery to Alberta and downstream processing.
The NICO 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 to support a ~20-year mine life. Fortune also owns the Sue-Dianne satellite copper deposit located 25 km north of the NICO deposit and is a potential future source of incremental mill feed for the Company's planned concentrator. NICO and Sue-Dianne are iron oxide copper-gold (" IOCG ")-type mineral deposits with world class global analogues that support the exploration potential of the area and Fortune's properties.
Ores from the NICO deposit will be mined primarily by open pit methods with a low waste to ore strip ratio. Portions of the higher-grade Mineral Reserves would 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 for access and ore haulage.
NICO ores will be processed in a concentrator constructed at the mine site with a 4,650 metric tonnes per day mill throughput rate and a low (4%) mass pull during bulk flotation that captures the recoverable metals in only 180 tonnes of bulk concentrate per day. A very efficient secondary flotation process separates the ore minerals into gold-bearing cobalt and bismuth concentrates for low-cost transportation by truck and rail to Alberta.
The hydrometallurgical facility is planned to be constructed in Lamont County in Alberta's Industrial Heartland, approximately 50 km northeast of Edmonton. Cobalt concentrate will be processed by POX in an autoclave to dissolve the contained 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 99.995% bismuth ingots. Gold will be recovered by leaching the combined autoclave residue, followed by carbon elution and smelting to doré bars.
Development of the NICO Project would provide a reliable, vertically integrated domestic supply of cobalt, gold, bismuth and copper with supply chain transparency and custody control of the metals from ores through to the production of value-added products. Fortune's cobalt production is targeting the lithium-ion rechargeable battery industry for use in electric vehicles, portable electronics and stationary energy storage cells. The NICO deposit contains 12% of global bismuth reserves and the ingots produced by Fortune will be marketed for automotive glass and steel coatings, low melting temperature and dimensionally stable alloys, and an environmentally safe and non-toxic replacement for lead in brass, solder, steel, aluminum and galvanizing alloys, paint, radiation shielding, ceramic glazes, ammunition and fishing weights. New applications also include environmentally safe plugs to properly seal decommissioned oil and gas wells, magnets for EV powertrains, and alloys used in the nuclear and defense industries. Notably, gold, bismuth and copper prices have all been increasing and compensate for the short-term weakness in the cobalt price.
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 Fortune Minerals
Fortune is a Canadian mining company focused on developing the NICO cobalt-gold-bismuth-copper project in the 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 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/20250108515555/en/
Fortune Minerals Limited
Troy Nazarewicz
Investor Relations Manager
info@fortuneminerals.com
Tel: (519) 858-8188
www.fortuneminerals.com
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Electric Royalties
Investor Insight
Electric Royalties is uniquely positioned to capitalize on the clean energy transition with a diversified, low-risk portfolio of high-value royalties that offer sustained growth and cash flow potential, making it a compelling investment opportunity.
Overview
Electric Royalties (TSXV:ELEC,OTCQB:ELECF) is an innovative royalty company offering investors exposure to the clean energy transition through its growing portfolio of clean energy metal royalties. The company stands out as the only fully diversified royalty firm in the space, holding 43 royalties across nine key clean energy metals, ensuring strategic access to the growing electrification and renewable energy industries.
The company’s strategy for shareholder value growth is centered on acquiring royalties in safe jurisdictions (primarily, the US and Canada) and focusing on properties with near-term production potential. This approach ensures steady cash flow generation while reducing operational risks. The company’s current royalty portfolio consists of assets that are either in production, advanced stage projects or exploration assets, ensuring cash flow generation and future growth potential.
The acquisition of the Punitaqui Copper Mine royalty provides immediate exposure to production, while assets like Authier Lithium and Battery Hill Manganese are expected to enter production in the near term.
This collective expertise within Electric Royalties' management and advisory teams ensures a strategic and well-governed approach to capitalizing on opportunities in the clean energy metals sector.
Company Highlights
- Electric Royalties is the only royalty company that is fully diversified in clean energy metals, with royalties on nine different metals, including copper, lithium, manganese, nickel and vanadium.
- Electric Royalties currently holds 43 total royalties across clean energy metals, with 17 additional optioned properties that could be converted into future royalties.
- The company’s portfolio includes assets that are in production or near-term production, ensuring cash flow generation and future growth potential. The acquisition of the Punitaqui copper mine royalty provides immediate exposure to production, while assets like Authier Lithium and Battery Hill Manganese are expected to enter production in the near term.
- The company prioritizes low-risk mining jurisdictions, with most of its assets located in Canada and the United States.
- Led by CEO Brendan Yurik, the leadership team brings extensive expertise in royalty acquisitions, mine financing and strategic growth.
Key Royalties
Punitaqui Copper Mine (Producing) – Chile
The Punitaqui Mining Complex includes the copper processing plant that is currently permitted for 100,000 tonnes per month. (Source: Battery Mineral Resources Corp.)
The Punitaqui copper mine is a producing asset operated by Battery Mineral Resources (TSXV:BMR; OTCQB:BTRMF), on which Electric Royalties holds a 0.75 percent gross revenue royalty (GRR). Located in the Coquimbo Region of Chile, the mine benefits from four satellite copper deposits, strong infrastructure, and established processing facilities.
The mine is permitted for 100,000 tonnes per month of processing capacity, with regional exploration potential that could further extend its operational life and increase production.
In July 2025, Battery Mineral Resources reported that its Chilean subsidiary, Minera BMR SpA, had received unanimous approval of the Environmental Impact Statement (EIS) for the Los Mantos Copper Plant in Punitaqui, Chile. This extends the facility’s operational life by up to ten years and supports hundreds of jobs in the Punitaqui and Ovalle communities.
Authier Lithium Project (Pre-production) – Canada
The Authier lithium project is a key lithium asset in Quebec, Canada, operated by Sayona Mining (ASX:SYA). Electric Royalties holds a 0.5 percent gross metal royalty (GMR) on part of the deposit. This project is a major component of Sayona's integration plan with North American Lithium (NAL), which commenced production in early 2023. Authier is expected to provide a stable supply of lithium for North America's growing EV battery industry, aligning with the push for localized supply chains.
The Authier lithium royalty is expected to be integrated into the producing North American Lithium (NAL) mine operated by Sayona Mining, which is set to merge with Piedmont Lithium. According to NAL’s Feasibility Study, the integration of Authier has the potential to contribute to Electric Royalties’ cash flow in the near term.
Battery Hill Manganese Project (Prefeasibility Stage) – Canada
The Battery Hill manganese project, located in New Brunswick, Canada, is an advanced-stage project operated by Manganese X Energy. Electric Royalties holds a 2 percent GMR on the project, which is currently undergoing a prefeasibility study. The asset is well-positioned to support the growing demand for high-purity manganese, a critical component in EV batteries and energy storage technologies. Recent metallurgical testing has demonstrated strong recovery rates, further increasing its economic potential.
Mont Sorcier Vanadium Project – Canada
The Mont Sorcier vanadium project in Quebec, Canada, is operated by Cerrado Gold, with Electric Royalties holding a 1 percent vanadium GMR. Acquired when the project only had a resource estimate, Mont Sorcier has since advanced through additional metallurgical testing in partnership with Glencore and is now progressing through feasibility and permitting, with a Feasibility Study targeted for Q1 2026. As a large iron-vanadium deposit, the project has the potential to supply vanadium for both steel production and the growing vanadium redox flow battery sector, positioning it as a strategically important long-term asset.
Zonia Copper Project – USA
The Zonia copper project, located in Arizona, USA, is operated by World Copper (TSXV:WCU). Electric Royalties holds a 0.5 percent GRR on Zonia, with an option to add 1 percent GRR on Zonia North. Zonia is an oxide copper deposit with near-surface, leachable ore, making it a low-cost, open-pit mining opportunity. The project has undergone resource expansion, and a feasibility study is targeted for completion in 2025. Given the strong US push for domestic copper production, Zonia is well-positioned to benefit from critical minerals policies supporting infrastructure and electrification efforts.
The Zonia copper royalty, one of the leading copper oxide projects in North America, is being acquired by Plata Latina Minerals Corporation with plans to move toward construction in the near to medium term following closing of the transaction. World Copper reported last fall that the resource at Zonia nearly doubled.
Seymour Lake - Canada
The Seymour Lake lithium project in Ontario, Canada, is subject to a 1.5 percent NSR royalty held by the company. Acquired in an all-share transaction valued at C$1 million, the project has advanced significantly under operator Green Technology Metals (ASX:GT1), which has raised more than C$70 million and secured a C$100 million LOI with the Canadian government. Since acquisition, Seymour Lake has progressed from a historical resource to a Preliminary Economic Assessment (PEA) and resource upgrade. In February 2025, Green Technology Metals released an updated PEA assessing Seymour Lake on a standalone basis, following earlier combined development studies with the Root Project. A pre-feasibility study is underway.
Management Team
Craig Lindsay - Chairman of the Board
Craig Lindsay has 30 years’ experience in corporate finance, venture capital and public company management and is the managing director of Arbutus Grove Capital. Lindsay was the founder, president, and CEO of Otis Gold until its merger with Excellon Resources in April 2020. He is a director of Revolve Renewable Power, Excellon Resources, VR Resources and Silver North Resources.
Brendan Yurik – Chief Executive Officer
Brendan Yurik is the founder and CEO of Evenor Investments, a financial advisory group to junior mining companies for alternative financing, debt, equity and M&A with experience in over $2 billion in mining financing transactions throughout his career. He has prior global experience as a research analyst as well as in business development and mining financial advisory roles with Endeavour Financial, Cambrian Mining Finance Ltd, Northern Vertex Mining Corp. and King & Bay West Management Corp.
Robert Scott – Chief Financial Officer
Robert Scott has more than 25 years’ experience in accounting, corporate finance, compliance and banking. Throughout his career, Scott has helped raise more than $200 million in equity financing and developed extensive experience in IPOs, reverse takeovers, mergers and acquisitions, and corporate restructuring.
Robert Schafer – Independent Director
Appointed in November 2020, Robert Schafer brings more than 30 years of international experience in mineral exploration and mining, enhancing the board's technical and strategic capabilities.
Stefan Gleason - Director
Stefan Gleason is the president, CEO, and majority shareholder of Money Metals Exchange LLC, a privately held company that is among the largest precious metals dealers and depositories in North America with over C$1 billion in annual revenues. Gleason is also the managing director of Gleason & Sons LLC, a Charlotte, N.C.-based family limited liability company which holds and manages debt, equity, and real estate investments. With past appearances on U.S. television networks such as CNN, FoxNews, Fox Business, and CNBC, Gleason is also a regular columnist for Seeking Alpha and Investing.com and has been published by the Wall Street Journal, Newsweek, Mining.com and TheStreet, among other publications.
Cobalt Market Update: Q2 2025 in Review
Prices for cobalt sulfate jumped even more steeply, climbing 74 percent month-on-month.
“If the DRC government wanted to flex its muscles and show miners and refiners who really controlled global cobalt reserves, it would appear they’ve succeeded for now,” wrote Fastmarkets’ Rob Searle in an April market update. “Standard grade cobalt metal prices soared to highs not seen since November 2023 in the space of two weeks."
While prices initially stabilized in mid-April, sentiment remained fragile heading into May. With the DRC ban still in place and little progress reported in negotiations, cobalt prices held steady between US$15 and US$16.
“For now, the cobalt market appears to have stabilized, with prices high enough to encourage sellers to offer material out. Refiners in China appear to have ample stocks of feed to continue to supply contract volumes,” Searle notes in a separate overview of the cobalt sector, published in May.
“This month, we expect to see a reduction in import volumes of cobalt hydroxide into China. This is expected to tighten refinery feed out to August, should the export ban end towards the later stages of June, as initially planned.”
DRC extends cobalt export controls
After plunging to a nine year low in late January and then rebounding to multi-year highs by the end of Q1, cobalt prices began to ease in early June as supply uncertainty weighed on the market.
Despite the export ban in the DRC, trade data from China showed a significant influx of cobalt in April.
The country's imports of cobalt metal rose 60 percent month-on-month, driven largely by Indonesian supply, while its exports of cobalt metal surged 202 percent year-on-year.
"We are still seeing cobalt units arriving in China — or at least we were in May, which is the last month for which trade data were available,” said Olivier Masson, principal analyst at Fastmarkets, during a June presentation at his company's Lithium Supply & Battery Raw Materials event, held in Las Vegas.
According to Masson, China imported 75,000 metric tons of cobalt from the DRC in the first five months of 2025, along with another 22,000 metric tons of mixed hydroxide precipitate (MHP).
Of the MHP amount, 17,000 metric tons came from Indonesia, a region that is becoming increasingly important to the cobalt sector, especially now that the DRC has extended its export controls into September.
Although Indonesia is projected to increase its output, “the supply of cobalt from Indonesia is not going to be large enough to offset the loss of supply from the DRC,” said Masson.
Cobalt supply expected to slow in H2
Cobalt supply has surged over the past five years, with global mine production more than doubling from 140,000 metric tons in 2020 to 290,000 metric tons in 2024. This rapid growth has far outpaced demand from the electric vehicle (EV) sector and other end-use industries, resulting in a significant market oversupply.
However, with the DRC — which accounts for roughly 70 percent of global cobalt production — extending its export limitations into the second half of the year, mine supply is expected to register more muted gains in 2025.
“We expect mine supply growth to slow this year,” said Masson. “Prices are at multi-year lows, and yet, despite that, we still saw relatively strong growth numbers from major producers in the country.”
With exports stalled, inventories are building up in the DRC, a dynamic that may force operational adjustments.
“We might see miners who principally produce copper — and get cobalt as a by-product — start mining lower-grade cobalt ores in order to manage the inventories that are piling up,” Masson explained.
He added that cobalt sulfate demand slowed in 2024 due to a weaker-than-expected EV market in the west.
In response, Chinese refiners pivoted to producing cobalt metal, significantly impacting global trade dynamics.
“Just like they did for nickel, Chinese refiners switched to cobalt metal production,” Masson said. “As a result, we’ve seen cobalt metal exports out of China jump by over 230 percent from January to May.”
Masson went on to explain: “This level of export growth is likely unsustainable. There’s limited feedstock coming from the DRC due to the export ban, and that will inevitably constrain Chinese production going forward.”
Strategically diversifying supply
As the global market looks ahead, geopolitical dynamics are taking on greater significance.
The US, which is seeking to secure non-Chinese sources of critical minerals, is engaged in negotiations with the DRC. At the same time, it’s backing infrastructure development, including support for the Lobito Corridor, a rail and port route that would allow DRC-sourced cobalt to be exported via the west coast of Africa, bypassing China entirely.
“Currently, about 83 percent of the DRC’s cobalt exports go to China,” Masson said.
“But both the DRC and the US are motivated to diversify those flows.”
However, the US still lacks sufficient domestic precursor cathode active material capacity, a key step in the battery supply chain, which could limit its ability to process cobalt independently in the short term.
Looking at the cobalt market more broadly, Masson said Fastmarkets expects supply to remain “adequate” in the near term. But with inventories outside the DRC being steadily drawn down, tighter conditions could emerge later this year.
“By August or September, we could start to see the market tightening,” he said. “Our price forecast before the export ban was extended … but now, there’s potential for prices to remain elevated longer than previously expected.”
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
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