Fortune Bay Announces Closing of Non- Brokered Private Placement
Fortune Bay Announces Closing of Non-
Brokered Private Placement
HALIFAX
,
May 7, 2020
/CNW/ - Fortune Bay Corp. (TSXV: FOR) ("
Fortune Bay
" or the
"
Company
") is pleased to announce that it has closed its previously announced non-brokered private
placement for aggregate gross proceeds of
$2,750,000
(the "Offering"). The Company issued
7,857,144 units at an issue price of
$0.35
per unit, with each unit comprised of one common share
and one-half common share purchase warrant. Each whole warrant will be exercisable into one
common share of the Company at an exercise price of
$0.50
per share for a period of three
years. Directors of the Company subscribed for an aggregate of 1,428,572 units.
The proceeds of the Offering will be used to fund the Company's operating costs and the
maintenance and exploration at Fortune Bay's Goldfields Project and Ixhuatán Project. The
Goldfields Project consists of a 100% ownership interest in two deposits, known as the Box and
Athona deposits. The Box and Athona deposits are large, multi-million tonne open pit deposits
located in northern
Saskatchewan
, near Uranium City. The Ixhuatán Project is also 100% owned and
consists of the Rio Negro concession in the Chiapas State of Mexico. The Rio Negro concession is
host to the Campamento gold deposit and several gold and gold-silver mineralized zones and
exploration targets.
The Offering was led by Numus Capital Corp. ("Numus"). In connection with the Offering, Fortune
Bay paid a finder's fee comprised of cash equal to seven percent (7.0%) of the gross proceeds
received by Fortune Bay from the sale of units to Numus investors, plus warrants entitling Numus to
purchase the number of shares in the Company that is equal to seven percent (7.0%) of the units
sold by Numus as part of the Offering, with each warrant exercisable into a common share of
Fortune Bay at
$0.50
per share for a period of three years. This resulted in
$192,500
in cash fees
paid and 550,000 warrants granted to Numus.
All securities issued pursuant to the Offering will be subject to a statutory four-month hold period in
accordance with Canadian securities legislation.
About Fortune Bay
Fortune Bay is in the business of resource property exploration and owns 100% interests in two
properties: the Goldfields Project, located in
Saskatchewan, Canada
and the Ixhuatán Project
located in the Chiapas State of Mexico.
Cautionary and Forward
Looking Statements
Except for the statements of historical fact contained herein, certain information presented
constitutes "forward-looking information" within the meaning of applicable Canadian securities laws.
Such forward-looking information, includes, but is not limited to, the use of the proceeds of the
Offering. While such forward-looking statements are expressed by Fortune Bay, as stated in this
release, in good faith and believed by Fortune Bay to have a reasonable basis, they are subject to
important risks and uncertainties. As a result of these risks and uncertainties, the events predicted in
these forward-looking statements may differ materially from actual results or events. These forward-
looking statements are not guarantees of future performance, given that they involve risks and
uncertainties. Fortune Bay does not undertake any obligation to release publicly revisions to any
forward-looking statement, except as may be required under applicable securities laws. Investors
should not assume that any lack of update to a previously issued forward-looking statement
constitutes a reaffirmation of that statement. Continued reliance on forward-looking statements is at
investors' own risk.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
SOURCE
Fortune Bay Corp.
View original content:
http://www.newswire.ca/en/releases/archive/May2020/07/c8104.html
%SEDAR: 00039152E
For further information:
Sarah Oliver, CFO, Fortune Bay Corp., 2001-1969 Upper Water Street,
Halifax, NS, B3J 3R7, T: 902-422-1421, E: [email protected]
CO: Fortune Bay Corp.
CNW 17:17e 07-MAY-20