Fortune Minerals Announces Second Draw From Convertible Securities Agreement With The Lind Partners Proceeds to provide working capital & pre-fund government supported work programs
Fortune Minerals Announces Second Draw From Convertible Securities
Agreement With The Lind Partners
Proceeds to provide working capital & pre-fund government supported work programs
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN
THE UNITED STATES
LONDON, Ontario--(BUSINESS WIRE)--December 23, 2024--Fortune Minerals Limited
(TSX: FT) (OTCQB: FTMDF) (“Fortune” or the “Company”) (www.fortuneminerals.com) is
pleased to announce that it has drawn down an additional C$1,575,000 (the “Second
Convertible Security”) from its convertible security funding agreement with Lind Global Fund
II, LP, managed by The Lind Partners (together, “Lind”) (see news release dated May 22, 2024).
The proceeds from this Second Convertible Security drawdown will be used for general working
capital purposes and to pre-fund some of the government supported work on the vertically
integrated NICO Cobalt-Gold-Bismuth-Copper Critical Minerals Project (“NICO Project”) (see
news releases dated, May 16, 2024, and December 5, 2023). 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 with a highly
liquid and countercyclical gold co-product to mitigate metal price volatility.
The Second Convertible Security has a two-year term, a face value of C$1,890,000 and is
secured by a lien against the Company’s assets. Lind will be entitled to incrementally convert the
face value amount of the Second 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
of Fortune’s shares (“VWAP”) prior to the date of conversion. Commencing 60 days after the
shares issuable under this convertible security become free trading, Fortune has the right to
repurchase the Second Convertible Security, subject to Lind’s option to convert up to one third
of the face value into Fortune 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$60,000 and
16,338,174 common share purchase warrants at an exercise price of $0.0609 per common share
for 60 months from the date of issuance after closing.
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 NICO cobalt-gold-bismuth-
copper critical minerals project in Canada’s 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, additional drawdowns under the convertible
security funding agreement, use of the second drawdown under the convertible security 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 convertible
security 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 convertible security 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.
Contacts
For further information please contact:
Fortune Minerals Limited
Troy Nazarewicz
Investor Relations Manager
Tel: (519) 858-8188
www.fortuneminerals.com