FORTUNE MINERALS PROVIDES PROJECT FINANCE UPDATE Accelerating demand for cobalt in electric vehicles and concerns with geographic concentration of supply generating investment interest in NICO Project
April 19, 2018 Issued Capital: 338,403,220
NEWS RELEASE
FORTUNE MINERALS PROVIDES PROJECT FINANCE UPDATE
Accelerating demand for cobalt in electric vehicles and concerns with geographic
concentration of supply generating investment interest in NICO Project
LONDON, ONTARIO, Fortune Minerals Limited (TSX: FT) (OTCQX: FTMDF) (“Fortune” or the
“Company”) (www.fortuneminerals.com) is pleased to provide an update of the financing for its 100%
owned NICO Cobalt-Gold-Bismuth-Copper Project in Canada (“ NICO Project”). The NICO Project is
one of few new cobalt assets globally with the potential to be in production by the early 2020’s and
respond to the accelerating demand from transformative automotive electrification, port able electronic
devices and stationary storage.
Fortune has engaged Hatch Ltd. (“ Hatch”), P&E Mining Consultants Inc. (“ P&E”) and Micon
International Limited (“Micon”) to update the National Instrument 43-101 technical report on the NICO
Project Feasibility Study prepared in 2014 based on new design developments and improvements,
current capital and operating costs, commodity prices and currency exchange rates, and the
economies of scale of an approximate 30% increase in the mill throughput rate. As this s tudy nears
completion, Fortune has been advancing discussions with a number of parties to participate in a
complete project finance solution to fund construction of the NICO Project. The Company has entered
into approximately 25 Confidentiality Agreements to date with prospective investors and has also
been conducting marketing trips to meet with potential partners in North America, Asia and Europe.
Discussions are continuing with automotive manufacturers, battery and trading companies, mining
companies, ba nks, sovereign wealth funds and intermediaries. Fortune’s preferred strategy is to
attract one or more asset level strategic partners to contribute equity toward a conventional debt and
equity project financing. Fortune expects to enter into additional con fidentiality agreements before the
new technical report has been completed, at which time it expects to begin negotiations with a
shortlist of companies.
As Fortune continues to evaluate its financing strategies, it has provided notice to
PricewaterhouseCoopers Corporate Finance Inc. that it is terminating its engagement as financial
advisor effective May 18, 2018. Due to the uniqueness of the NICO Project and the commodities that
will be produced, the Company’s financing strategy relies primarily on manag ement’s detailed
knowledge of the processes, commodities and marketing. Accordingly, the Company believes that the
most efficient way forward is for management to drive the financing process.
The NICO Project is a development stage primary cobalt asset co nsisting of a planned mine, mill and
concentrator in the Northwest Territories and hydrometallurgical refinery in Saskatchewan to produce
cobalt sulphate, gold, bismuth ingot and oxide, and copper cement. Development of NICO would
make Fortune into a new r eliable North American vertically integrated producer of “Energy” and “Eco”
metals and gold and mitigate supply concerns from rising demand for cobalt in lithium -ion batteries
and geographic concentration of production in the Congo and China.
The disclos ure 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.
FORTUNE MINERALS LIMITED
148 Fullarton Street, Suite 1600, London, Ontario, Canada N6A 5P3
Tel. 519-858-8188 ~ Fax. 519-858-8155
About Fortune Minerals
Fortune is a Canadian mining company focused on developing the vertically integrated NICO cobalt -
gold-bismuth-copper project in the Northwest Territories and a related refinery the Company plans to
construct in Saskatchewan. Fortune also owns the Sue -Dianne copper-silver-gold deposit located 25
km north of NICO and a potential future source of incremental mill feed to potentially extend the life of
the NICO mill.
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For further information please contact:
Fortune Minerals Limited
Troy Nazarewicz
Investor Relations Manager
Tel.: (519) 858-8188
www.fortuneminerals.com
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 project
financing to start construction), the timing and results of the updated Technical Report of the 2104 Feasibility
Study (“Technical Report ”) and the Company’s intention to enter into additional confidentiality agreements.
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 an d develop the NICO P roject, assumptions regarding the timing and results of the
updated Technical Report , growth in the demand for cobalt, assumptions regarding the Company’s ability to
complete additional confidentiality agreement and the economic environment in which the Co mpany will operate
in the future, including the price of gold, cobalt and other by -product metals). 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 updated
Technical report may take longer than anticip ated, uncertainties with respect to the receipt or timing of required
permits and agreements for the development of the Nico Project, the risk that the updated Technical Report may
not generate improved economics for the NICO project to the extent anticipa ted, the inherent risks involved in
the exploration and development of mineral properties and in the mining industry in general; the market for
rechargeable batteries and the use of stationary storage cells may not grow to the extent anticipated, the futur e
supply of cobalt may not be as limited as anticipated, the risk of decreases in the market prices of cobalt 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 the risk that even if such resources prove accurate the risk that such resources may not
be converted into mineral reserves, once economic conditions are applied; 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 up date or revise it to reflect new events or circumstances, except as
required by law.