Accelerating demand for cobalt in electric
vehicles and concerns with geographic concentration of supply
generating investment interest in NICO Project
Issued Capital: 338,403,220
LONDON, ON, April 19, 2018 /CNW/ - 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,
portable 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 study 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, banks, 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 confidentiality 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
management'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
consisting 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 reliable 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 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.
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.
Follow Fortune Minerals:
Click here to subscribe to Fortune's email list.
Click here to follow Fortune on LinkedIn.
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 and
develop the NICO Project, 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 Company 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 anticipated, 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
anticipated, 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 future 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 update or
revise it to reflect new events or circumstances, except as
required by law.
SOURCE Fortune Minerals Limited
