Fortune BAY Announces Option Agreement FOR the Murmac and Strike Uranium Projects
TSXV: FOR | FWB: 5QN | OTCQX: FTBYF
fortunebaycorp.com
NEWS RELEASE
1969 Upper Water Street, Suite 2001, Purdy’s Wharf Tower II, Halifax, NS B3J 3R7 T 902.422.1421 | F 902.491.4281
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FORTUNE BAY ANNOUNCES OPTION AGREEMENT FOR THE MURMAC AND STRIKE
URANIUM PROJECTS
HALIFAX, NS December 18, 202 3 – Fortune Bay Corp. (TSXV: FOR, FWB: 5QN, OTCQX: FTBYF )
(“Fortune Bay” or the “Company”) is pleased to announce that it has entered into a definitive option
agreement (the “Agreement”), dated December 15, 2023, with 1443904 B.C. Ltd. (the “Optionee”), an arms-
length private company. Pursuant to the Agreement, the Optionee will be granted the right to acquire up to
a 70% interest in the Company’s wholly owned Murmac and Strike Uranium Projects (the “Projects”) over
a three-and-a-half-year period by funding C$6 million in exploration expenditures, making cash payments
totalling C$1.35 million, and issuing C$2.15 million in common shares following completion of a going public
transaction.
The Projects include mineral claims totalling 19,877 hectares located along the northwestern margin of the
Athabasca Basin , near Uranium City, Saskatchewan , in the prolific Beaverlodge mining district where
approximately 70 million pounds of U 3O8 was produced between 1950 and 1982 (see Figure 1) . The
Projects have potential for high-grade, basement-hosted uranium deposits in a geological setting similar to
other major discoveries on the Basin margin. This potential has been confirmed th rough initial drilling by
Fortune Bay in 2022 which intersected favorable geology, alteration, geochemi stry, and uranium
mineralization. For further details please see News Releases dated December 7, 2022 and December 13,
2022. The Projects host approximately 63 kilometres of prospective electromagnetic conductor packages
which were not systematically targeted and drill tested during historical exploration efforts, which
predominantly targeted Beaverlodge-style mineralization. A significant number of historical high -grade
(>1% U3O8) uranium showings occur within the Projects, in addition to historical small-scale uranium mining
at the Tena prospect.
Key Terms of the Agreement
Pursuant to the terms of the Agreement, the Optionee shall have the right to earn up to a seventy (70%)
percent interest in the Projects in consideration for a series of cash payments, the issuance of common
shares following completion of a going public transaction, and incurring certain exploration expenditures,
as follows:
Cash (C$) Consideration
Shares (C$)
Exploration
Expenditures (C$) Interest Earned
Signing of the Agreement
(the “Execution Date”) $200,000(1) $200,000(2) Nil
12 month anniversary
of Execution Date $200,000 $200,000(3) $1,000,000
24 month anniversary
of Execution Date $250,000 $250,000(3) $2,000,000
Total (First Option) $650,000 $650,000 $3,000,000 51%
36 month anniversary
of Execution Date $300,000 $300,000(3) $3,000,000
Total (Second Option) $300,000 $300,000 $3,000,000 60%
42 month anniversary
of Execution Date $400,000 $1,200,000(3) Nil
Total (Third Option) $400,000 $1,200,000 Nil 70%
Grand Total $1,350,000 $2,150,000 $6,000,000
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Notes:
(1) Payable to the Company immediately upon the entering into the Agreement.
(2) Issuable to the Company upon completion of a going public transaction, at the transaction price for the going public transaction.
The price at which the Consideration Shares are issued being referred to as the “Transaction Price”.
(3) Issuable at the Transaction Price.
The Company will act as the operator during the option period and will be entitled to charge a management
fee of 10% of expenditures incurred on the Projects.
A participating Joint Venture (“JV”) will be formed at the end of the option period, consistent with customary
JV Terms , as defined in the Agreement , with mutua l intent to negotia te an d execute a definitive JV
agreement. The JV will allow for dilution and should the Company’s interest fall below 10% the Company
will be granted (i) a 1% net smelter returns (“NSR”) royalty on the Murmac Property (the "1% Royalty"), and
(ii) a 2% NSR royalty on the Strike Property. One-half (0.5%) percent of the 1% Royalty may be repurchased
at any time prior to commercial production for a cash payment of C$1.5 million.
During exploration programs, the Projects will benefit from use of the Company’s camp and facilities located
in Uranium City upon commercially reasonable terms.
Figure 1: Location of the Murmac and Strike Uranium Projects.
Historical Results
Further details regarding the historical uranium occurrences noted in this news release can be found within
the Saskatchewan Mineral Deposit Index (“SMDI”) . Fortune Bay has verified the majority of these
occurrences through field prospecting and sampling , however there is a risk that any future confirmation
work and exploration may produce results that substantially differ from the unverified historical results. The
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Company considers these unverified historical results relevant to assess the mineralization and economic
potential of the property. The Company also cautions that past results , discoveries and production on
proximate land are not necessarily indicative of the results that may be achieved on the subject properties.
Qualified Person
The technical and scientific information in this news release has been reviewed and approved by Gareth
Garlick, P.Geo., Technical Director of the Company , who is a Qualified Person as defined by NI 43 -101.
Mr. Garlick is an employee of Fortune Bay and is not independent of the Company under NI 43-101.
About Fortune Bay
Fortune Bay Corp. (TSXV: FOR, FWB: 5QN, OTCQX: FTBYF) is an exploration and development company
with 100% ownership in two advanced gold exploration projects in Canada, Saskatchewan (Goldfields
Project) and Mexico, Chiapas (Ixhuatán Project), both with exploration and development potential. The
Company is also advancing the 100% owned Strike and Murmac uranium exploration projects, located near
the Goldfields Project, which have high-grade potential typical of the Athabasca Basin. The Company has
a goal of building a mid-tier exploration and development Company through the advancement of its existing
projects and the strategic acquisition of new projects to create a pipeline of growth opportunities. The
Company’s corporate strategy is driven by a Board and Management team with a proven track record of
discovery, project development and value creation. Further information on Fortune Bay and its assets can
be found on the Company’s website at www.fortunebaycorp.com or by contacting us as
[email protected] or by telephone at 902-334-1919.
On behalf of Fortune Bay Corp.
”Dale Verran”
Chief Executive Officer
902-334-1919
Cautionary Statement Regarding Forward-Looking Information
Information set forth in this news release contains forward -looking statements that are based on assumptions as of the date of this
news release. These statements reflect management's current estimates, beliefs, intentions, and expectations. They are not
guarantees of future performance. Words such as “expects”, “aims”, “anticipates”, “targets”, “goals”, “projects”, “intends”, “plans”,
“believes”, “seeks”, “estimates”, “continues”, “may”, variations of such words, and similar expressions and references to future periods,
are intended to identify such forward-looking statements.
Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they
involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the
Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors
involved with forward -looking information could cause actual events, results, performance, prospects and opportunities to diffe r
materially from those expressed or implied by such forward -looking information. Forward looking information in this news release
includes, but is not limited to, the Company’s objectives, goals , intentions or future plans, statements, exploration results , potential
mineralization, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of
operations and estimates of market conditions. Factors that could cause actual results to differ materially from such for ward-looking
information include, but are not limited to failure to identify mineral resources, failure to convert estimated mineral resou rces to
reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical
test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, poli tical risks,
inability to fulfill the duty to accommodate First Nations and other indigenous peoples, inability to reach access agreements with other
Project communities, amendments to applicable mining laws, uncertainties relating to the availability and costs of financing needed in
the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the
development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral
exploration and development industry, and those risks set out in the Comp any’s public documents filed on SEDAR. Although the
Company believes that the assumptions and factors used in preparing the forward -looking information in this news release are
reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no
assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intentio n or
obligation to update or revise any forward -looking information, whether a s a result of new information, future events or otherwise,
other than as required by law. For more information on Fortune Bay, readers should refer to Fortune Bay's website at
www.fortunebaycorp.com.
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accepts responsibility for the adequacy or accuracy of this release.