HALIFAX, NS, Dec. 2, 2021 /CNW/ - Fortune Bay Corp. (TSXV:
FOR) (Frankfurt: 5QN) ("Fortune
Bay" or the "Company") is pleased to announce that it has closed
its previously announced non-brokered private placement (the
"Offering") for aggregate gross proceeds of $6,863,700. The Company issued 4,669,231 units
and 4,972,338 flow through shares. Each unit was issued at a
price of $0.65 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
$0.85 per share for a period of two
years. The flow through shares were issued at a price of
$0.77 per share.
Finder's fees of $480,459 are
payable in cash. In addition, a total of 674,909 non-transferable
finder's warrants are issuable (the "Finder's Warrants"), with
326,846 Finder's Warrant having an exercise price of $0.65 per share and 348,064 Finder's Warrant
having an exercise price of $0.77 per
share. Each Finder's Warrant entitles a finder to purchase one
common share at the applicable exercise price for two years from
the date of issue, expiring on December 2,
2023.
The Company intends to use the proceeds of the Offering to fund
exploration and project development at Fortune Bay's Saskatchewan projects, and for general
operating costs.
Directors and officers of the Company subscribed for an
aggregate of 30,770 units and 32,468 flow through shares. The
participation of an insider in the Offering constitutes a "related
party transaction", as such terms are defined by Multilateral
Instrument 61-101 - Protection of Minority Security Holders
in Special Transactions ("MI 61-101"). The Company is
relying on an exemption from the formal valuation requirements of
MI 61-101 available on the basis of the securities of the Company
not being listed on specified markets. The Company is also relying
on the exemption from minority shareholder approval requirements
under MI 61-101 as the fair market value of the participation in
the Offering by the Insiders does not exceed 25% of the market
capitalization of the Company.
All securities issued pursuant to the Offering will be subject
to a statutory four-month hold period in accordance with Canadian
securities legislation.
About Fortune Bay
Fortune Bay Corp.
(TSXV:FOR, Frankfurt: 5QN) is an
exploration and development company with 100% ownership in two
advanced gold exploration projects in Canada, Saskatchewan (Goldfields Project) and
Mexico, Chiapas (Ixhuatán Project), both with
exploration and development potential. The Company is also
advancing the 100% owned Strike and Goldfields West uranium
exploration projects, located near the Goldfields Project, which
have high-grade potential typical of the Athabasca Basin. The Company has a goal of
building a mid-tier 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.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Fortune Bay Corp.
