Fortune Minerals Announces Potential Year-end Filing Delay
Fortune Minerals Announces Potential Year-end Filing Delay
LONDON, Ontario--(BUSINESS WIRE)--March 23, 2023--Fortune Minerals Limited (TSX:
FT) (OTCQB: FTMDF) (“Fortune” or the “Company”) (www.fortuneminerals.com)
announces that the filing of its audited annual financial statements, management discussion and
analysis for the year ended December 31, 2022, the related certifying officer certificates, and the
Company’s annual information form for the year ended December 31, 2022 (collectively, the
“Annual Filings”) may not be completed by the prescribed filing deadline, March 31, 2023 (the
“Filing Deadline”).
A delay in completing the Annual Filings would be as a result of a delay in the commencement
of the audit, however the Company has completed a private placement and has addressed its
short-term cash requirements, and the audit is in progress. Following the commencement of the
audit, the Company determined that the Annual Filings may not be completed by the Filing
Deadline. Fortune applied to the Ontario Securities Commission (the “OSC”) for the issuance of
a management cease trade order (“MCTO”) in connection with the Company's possible delay in
the Annual Filings. However, the OSC determined that it would not grant the Company’s
application because the request was made less than two weeks prior to the Filing Deadline. As a
result, the Company anticipates that, in the event it is unable complete the Annual Filings by the
Filing Deadline, the OSC would impose a failure to file cease trade order (“CTO”) pursuant to
National Policy 11-207. A CTO would prohibit the trading by any person of any securities of the
Company in Canada, including trades in the Company's common shares made through the
Toronto Stock Exchange. Once issued, the CTO will remain in place until such time as the
Annual Filings are filed by the Company.
The audit is in progress and Fortune is working with its auditors to complete the Annual Filings
as soon as possible. The Company’s board of directors and its management are working
expeditiously to meet its continuous disclosure obligations in relation to the Annual Filings. The
Company expects to have a better understanding as to the timing for completion of the Annual
Filings within the next week, including whether the Annual Filings will be completed by the
Filing Deadline, and intends to issue another press release as soon as this information is
available.
The Company has the necessary resources to remedy any default should it occur. Should a
default occur, it will comply with the alternative information guidelines set out in NP 12-203,
including issuing bi-weekly default status reports by way of news releases, which will be filed on
SEDAR.
The Company confirms that there are no insolvency proceedings against it and there is no other
material information concerning the affairs of the Company that has not been generally
disclosed.
About Fortune Minerals:
Fortune is a Canadian mining company focused on developing the NICO 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 mill and concentrator.
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This press release contains forward-looking information and forward-looking statements within
the meaning of applicable securities legislation. This forward-looking information includes
statements with respect to, among other things, the issuance of the Amended Debentures and the
Company's plants 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 Company’s ability to secure the necessary financing to repay the
Amended Debentures; 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 extension
shares and 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
COVID-19 pandemic or global geopolitical situations may interfere with the Company’s ability
to continue development of the NICO Project; the Company may not be able to secure financing
to repay the Amended Debentures; 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.
Contacts
Fortune Minerals Limited
Troy Nazarewicz
Investor Relations Manager
Tel: (519) 858-8188
www.fortuneminerals.com