Fortune Minerals Limited Announces C$5 Million Bought Deal Financing
Fortune Minerals Limited Announces C$5 Million Bought Deal Financing
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES
Toronto, Ontario – February 15, 2017 – Fortune Minerals Limited (TSX: FT) (OTCQX: FTMDF )
(“Fortune” or the “Company” ) is pleased to announce that it has entered into an agreement with
Cormark Securities Inc. (the "Underwriters"), which has agreed to purchase, on a bought deal basis, 20
million units of Fortune (the “Units”) at a purchase price of $0.25 per Unit (the “Offering Price”), for
aggregate gross proceeds in the amount of approximately $5 million (the “Offering”). Each Unit will
consist of one common share of Fortune (a "Unit Share") and one half of one common share purchase
warrant (each whole purchase warrant a "Warrant"), each Warrant being exercisable to acquire one
common share of Fortune at a purchase price o f $0.35 for a period of 24 months following the closing
date.
In addition, the Company has granted the Underwriters an option to purchase additional Units at the
Offering Price to raise additional gross proceeds of up to 15% of the Offering, for a period of 30 days
after and including the Closing Date to cover over -allotments, if any, and for market stabilization
purposes.
The offering is scheduled to close on or about March 8, 2017. Closing is subject to certain conditions
including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto
Stock Exchange and the securities regulatory authorities.
The net proceeds from the offering will be used to fund an updated feasibility study for the NICO
Cobalt-Gold-Bismuth-Copper project and for general corporate purposes.
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 NICO:
The NICO deposit contains Proven and Probable Mineral Reserves totaling more than 33 million tonnes
that will support a 21 -year mine life at a planned mill throughput rate of 4,650 metric tonnes of ore per
day. Approximately 180 wet tonnes per day of bulk concentrate will be produced by flotation in the mill
containing the recoverable metals and will be trucked from the site on the new road to the rail head at
Hay River for railway delivery to th e refinery in Saskatchewan and downstream processing to value -
added metals and chemicals. Life of mine average annual production is projected to be 41,300 ounces of
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gold, 1,615 tonnes of cobalt contained in a battery grade cobalt sulphate, 1,750 tonnes of bismuth
contained in metal ingots and oxide powder, and 265 tonnes of copper.
The disclosure of scientific and technical information contained in this news release has been approved
by Robin Goad, M.Sc., P.Geo., President and Chief Executive Officer of Fortune, who is a "Qualified
Person" under National Instrument 43 -101. The technical report on the feasibility study referred to
above, entitled "Technical Report on the Feasibility Study for the NICO -Gold-Cobalt-Bismuth-Copper
Project, Northwest Territories , Canada", dated April 2, 2014 and prepared by Micon International
Limited, from which certain information in this press release has been extracted, has been filed on
SEDAR and is available under the Company's profile at www.sedar.com.
About Fortune Minerals
Fortune is a Canadian development stage mining company focused on advancing the vertically
integrated NICO gold-cobalt-bismuth-copper project in the Northwest Territories and a related refinery
the Company plans to construct in Saskatchewan. Fortune a lso owns the Sue-Dianne copper-silver-gold
deposit located 25 km north of NICO and a potential future source of incremental mill feed to extend the
life of the NICO mill. The Company also maintains the right to repurchase the Arctos anthracite coal
deposits in northwest British Columbia that were recently purchased by a provincial Crown corporation.
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 Company's plans to develop the NICO project (including the
Company's plans to secure off -take agreements and project financing to start construction), estimated
future production, anticipated growth in the demand for cobalt, anticipated constraints on the supply of
cobalt and plans for the construction of an all -season road needed for operations at 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 arrange the
necessary financing to continue operations and develop the NICO project, growth in the demand for
cobalt, restrictions on the supply of cobalt and the proposed construction of the all -season road, 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 m etals 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 Company may not
be able to finance and develop NICO on favourable terms or at all, the market for rechargeable
batteries and the use of stationary storage cells may not grow to the extent anticipated, the future supply
of cobalt may not be as limited as anticipated, the Company's production of cobalt 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.
SOURCE Fortune Minerals Limited
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Troy Nazarewicz, CIM, CPIR
Investor Relations Manager
Fortune Minerals Limited
148 Fullarton Street, Suite 1600
London, Ontario, CANADA
N6A 5P3
Tel. 519-858-8188
Cel. 519-709-8489
www.fortuneminerals.com