Proposed new primary Canadian cobalt mine
to provide northern jobs and benefits while supporting the global
transition to electric vehicles and energy use
efficiency
Issued Capital: 340,303,220
LONDON, ON, Jan. 30, 2019 /CNW/ - Fortune Minerals
Limited (TSX: FT) (OTCQX: FTMDF) ("Fortune" or
the "Company") (www.fortuneminerals.com) is pleased to
announce that it has entered into a Socio-Economic Agreement with
the Government of the Northwest
Territories ("GNWT") for the proposed NICO
Cobalt-Gold-Bismuth-Copper Project ("NICO Project") in
Canada. The agreement formalizes
GNWT and Fortune objectives to maximize northern and Indigenous
employment, training, business opportunities, and education to
benefit residents of the Northwest
Territories ("NWT"). The agreement also establishes
measures to identify and mitigate socio-economic impacts arising
from development of the mine and related facilities in Tlicho
Territory, located approximately 160 km northwest of the
City of Yellowknife. The NICO
Project is a primary cobalt asset that also contains more than a
million ounces of gold and approximately 12% of global bismuth
reserves. It is one of the few deposits situated outside of the
Congo that can be developed to
support near-term accelerating demand for cobalt in lithium-ion
batteries needed to power electric vehicles, portable electronic
devices, and stationary cells to store energy during periods of
lower demand to make electricity use more efficient.
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The Socio-Economic Agreement was signed at AME Cordilleran
Roundup — a leading global exploration and mining conference in
Vancouver Canada — by Robin Goad, President and CEO of Fortune, The
Honourable Wally Schumann, Minister of Industry, Tourism and
Investment, and The Honourable Glen Abernethy, Minister of Health.
With the signing of the Socio-Economic Agreement for the NICO
Project, there are now five active Socio-Economic Agreements in the
NWT: Ekati Diamond Mine (Dominion Diamonds); Diavik Diamond Mine
(Rio Tinto); Gahcho Kue (De Beers/Mountain Province); NICO Project (Fortune
Minerals); Snap Lake (De Beers – on care and maintenance since
December 2015).
Robin Goad, President and Chief
Executive Officer of Fortune said, "Formalizing our contribution to
the livelihoods and quality of life of residents of the communities
in which we operate is a key objective of our Company. The NICO
Project will contribute energy- and eco-metals to support the
growing green economy and enable the Northwest Territories to further capitalize on
its significant mineral resource endowment."
The Honourable Wally Schumann, Minister of Industry, Tourism and
Investment for the Northwest
Territories commented, "The Government of the Northwest Territories continues to work hard
to improve the investment climate and support the responsible
development of the NWT's natural resources. The NICO Project is
important for our territory's future and I am happy to see this
milestone reached with Fortune Minerals."
About Fortune Minerals
Fortune is a Canadian mining company focused on developing the
NICO Cobalt-Gold-Bismuth-Copper project in the Northwest Territories. The Company owns lands
in Saskatchewan where it can
construct a refinery to process NICO concentrate to value-added
products. Fortune also owns the Sue-Dianne copper-silver-gold
deposit located 25 km north of the NICO Project, which is a
potential future source of incremental mill feed to extend the life
of the NICO Project mill.
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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 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: the Company's ability to arrange
the necessary financing to continue operations and develop the NICO
Project; the receipt of all necessary regulatory approvals and the
timing thereof; the rezoning of the Company's Saskatchewan refinery lands to allow for the
construction of a refinery to process NICO concentrate, if needed,
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 Company may not be able to finance and
develop the NICO Project 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, 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
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
