Fortune Bay to Complete Non-Brokered Private Placement
Fortune Bay to Complete Non-Brokered
Private Placement
HALIFAX
,
Feb. 28, 2020
/CNW/ - Fortune Bay Corp. (TSXV: FOR) ("
Fortune
" or the "
Company
")
is pleased to announce that it intends to complete a non-brokered private placement for aggregate
gross proceeds of up to
$2,000,000
(the "Offering"). The Company intends to issue up to
5,714,286 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.
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.
Fortune Bay has also started a search for a new Chief Executive Officer to operate the day to day
business of the Company with focus on advancing its resource projects. Mr.
Wade Dawe
will
remain as Chairman of the Company.
The Offering will be led by Numus Capital Corp. ("Numus"). In connection with the Offering, Fortune
Bay will pay 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 share purchase 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.
Closing of the Offering is subject to the approval of the TSX Venture Exchange. 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 closing of the Offering and 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/February2020/28/c0878.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 07:22e 28-FEB-20