HALIFAX, NS, Nov. 30, 2020 /CNW/ - Fortune Bay Corp. (TSXV:
FOR), (Frankfurt: 5QN) ("Fortune
Bay" or the "Company") is pleased to announce that it intends to
complete a non-brokered private placement for aggregate gross
proceeds of up to $2,000,000 (the
"Offering"). The Company intends to issue units and
flow through shares. Each unit will be issued at a price of
$1.20 per unit, with each unit
comprised of one common share and one-half common share purchase
warrant. Each whole warrant will be exercisable into one
common share of the Company at an exercise price of $1.60 per share for a period of two years.
The flow through shares will be issued at a price of $1.40 per share.
The Company intends to use the proceeds of the Offering to fund
exploration and project development at Fortune Bay's 100% owned
Goldfields Project and for general operating costs.
The Offering will be led by Numus Capital Corp. ("Numus").
In connection with the Offering, Fortune Bay will pay a finder's
fee comprised of cash equal to seven percent (7.0%) of the gross
proceeds received by Fortune Bay from the sale of the units and
flow-through shares to Numus investors, plus share purchase
warrants entitling Numus to purchase the number of shares in the
Company that is equal to seven percent (7.0%) of the number of
units and flow-through shares sold by Numus as part of the
Offering, with each warrant exercisable into a common share of
Fortune Bay at $1.60 per share for a
period of two years.
Closing of the Offering is subject to the approval of the TSX
Venture Exchange. All securities issued pursuant to the
Offering will be subject to a statutory four-month hold period in
accordance with Canadian securities legislation.
About Goldfields
The 100% owned Goldfields
Project is the Company's most advanced asset located in northern
Saskatchewan, approximately 13
kilometres from Uranium City, for
which a historical Pre-Feasibility Study ("2011 PFS") was completed
in October 2011 in accordance with NI
43-101. The 2011 PFS envisaged open-pit mining of the Box and
Athona gold deposits, located two kilometres apart, over 13 years
with estimated gold recoveries of 91% and 89% respectively,
processed at a shared mill facility with a capacity of 5,000 tonnes
per day. Economic highlights from the 2011 PFS include an NPV (at a
5% discount rate) of CAD$144.3
million (pre-tax) and a 19.6% IRR (pre-tax) using a base
case of CAD$1,250/oz of gold
(exchange rate CAD$ = 0.96 USD$).
Total capital costs were estimated at CAD$159.2 million including a 13.7% contingency.
Mineral reserve and mineral resource estimates for the 2011 PFS
(Box and Athona deposits) included; 1.02 million ounces of gold
(22.3 million tonnes at 1.4 g/t Au) in proven and probable
reserves, 1.03 million ounces of gold (20.9 million tonnes at 1.5
g/t Au) in measured and indicated resources (included in the proven
and probable reserves), and 0.23 million ounces of gold (4.6
million tonnes at 1.5 g/t Au) in inferred resources. The Project is
endowed with established infrastructure including existing roads,
powerline, and nearby facilities and an airport at Uranium City. The Project has a history of
gold production (64,000 oz Au produced between 1939 to 1942),
numerous exploration drilling campaigns (~87,000 metres of drilling
in ~750 drill holes) and various mining studies (including a 2007
Feasibility Study for the Box deposit for GLR Resources Inc. that
was prepared in accordance with NI 43-101). The Box open-pit mine
and mill development is permitted having received Ministerial
approval under the Environmental Assessment Act in May 2008. The 10,300 hectare Goldfields property
presents numerous exploration opportunities, including the
potential to expand the Box and Athona deposits and discover
additional resources at several other gold prospects and
occurrences.
About Fortune Bay
Fortune Bay Corp. (TSXV:FOR) is a gold-focused exploration
and development company with 100% ownership in two advanced
exploration gold projects in Canada, Saskatchewan (Goldfields Project) and
Mexico, Chiapas (Ixhuatán Project), both with
exploration and development potential. The Company has a goal of
building a mid-tier gold exploration and development Company
through the advancement of its existing projects and the strategic
acquisition of new projects to create a pipeline of growth
opportunities. The Company's corporate strategy is driven by a
Board and Management team with a proven track record of discovery,
project development and value creation. Further information
on Fortune Bay and its assets can be found on the Company's website
at www.fortunebaycorp.com or by contacting us
as info@fortunebaycorp.com or by telephone at
902-334-1919.
On behalf of Fortune Bay Corp.
"Dale Verran"
Chief Executive Officer
902-334-1919
Cautionary Statement Regarding Forward-Looking
Information
Information set forth in this news
release contains forward-looking statements that are based on
assumptions as of the date of this news release. These statements
reflect management's current estimates, beliefs, intentions and
expectations. They are not guarantees of future performance.
Fortune Bay Corp. ("Fortune Bay" or the "Company") cautions that
all forward-looking statements are inherently uncertain, and that
actual performance may be affected by a number of material factors,
many of which are beyond Fortune Bay's control. Such factors
include, among other things: risks and uncertainties relating to
metal prices, changes in planned work resulting from weather,
logistical, technical or other factors, the possibility that
results of work will not fulfill expectations and realize the
perceived potential of Fortune Bay's mineral properties,
uncertainties involved in the interpretation of drilling results
and other tests, the possibility that required permits may not be
obtained in a timely manner or at all, risk of accidents, equipment
breakdowns or other unanticipated difficulties or interruptions,
the possibility of cost overruns or unanticipated expenses in work
programs, the risk of environmental contamination or damage
resulting from the exploration operations, the need to comply with
environmental and governmental regulations and the lack of
availability of necessary capital, which may not be available to
Fortune Bay, acceptable to it or at all. Fortune Bay is subject to
the specific risks inherent in the mining business as well as
general economic and business conditions. Accordingly, actual and
future events, conditions and results may differ materially from
the estimates, beliefs, intentions and expectations expressed or
implied in the forward-looking information. Except as required
under applicable securities legislation, Fortune Bay undertakes no
obligation to publicly update or revise forward-looking
information. Fortune Bay does not intend, and does not assume any
obligation, to update these forward-looking statements, except as
required under applicable securities legislation. For more
information on Fortune Bay, readers should refer to Fortune Bay's
website at www.fortunebaycorp.com.
SOURCE Fortune Bay Corp.
