Fortune Minerals Announces NICO Permitting Update
Information Request Stage Completed - Advancing to Technical Meeting Stage
Issued Capital: 116,076,976
LONDON, ON, Dec. 16, 2011 /CNW/ - Fortune Minerals Limited (TSX-FT) ('Fortune' or the 'Company') is pleased to provide an update on the Environmental Assessment ('EA') process currently underway in the Northwest Territories ('NT') to permit the mine and mill for the Company's NICO gold-cobalt-bismuth-copper deposit. The NICO project, which was referred to EA in February 2009, has completed an additional milestone by progressing to the Technical Meetings Stage.
The Developers Assessment Report ('DAR') for the NICO project, submitted in May 2011 to The Mackenzie Valley Review Board ('MVRB'), passed the conformity check in August with no deficiencies. The EA progressed to the Information Request Stage where interested parties that have reviewed the DAR submitted questions to the Company through the MVRB. Fortune received these requests, which consisted of 425 questions from 10 separate interested parties, in mid-October. Fortune completed its responses to these requests and has now advanced to the Technical Meetings Stage of the EA process. These meetings are scheduled for January 17-19, 2012 in Yellowknife.
Dr. Richard Schryer, Fortune's Director of Regulatory and Environmental Affairs, commented that, 'we are proud of our team's comprehensive and timely response to the information requests, and with our continued progression through the EA process.'
Fortune is concurrently working to secure a strategic partner to help finance the NICO project and has engaged Deloitte & Touche Corporate Finance Canada Inc. ('Deloitte') as the Company's financial advisor. Deloitte was re-engaged after successfully helping Fortune secure POSCO Canada Ltd. as its first stage joint venture partner for the Mount Klappan anthracite coal project in British Columbia. Deloitte will assist Fortune in identifying additional potential strategic partners and in evaluating potential transactions.
The Company is also pleased to report that an aggregate of 6,383,277 of its publicly traded warrants that expired on December 5, 2011 were exercised at a price of $0.80 per share resulting in gross proceeds to the Company of approximately $5.1 million.
About the NICO Cobalt-Gold-Bismuth Project:
The NICO Project is located 160 km northwest of the City of Yellowknife, NT and 50 km north of the Tlicho community of Whati. The 31 million tonne deposit will be developed using a combination of open pit and underground mining methods with ores projected to be processed at the rate of 4,650 tonnes per day in a mill at the site over an 18-year mine life. Other facilities that are planned at the site include a camp to accommodate employees working on a rotation basis, ancillary buildings and a 27 km all-season access road that will join the site to the proposed Tlicho Road connecting nearby communities with the highway to Yellowknife. The mill is expected to produce approximately 180 tonnes of bulk concentrate per day for shipment south to the Company's proposed hydrometallurgical refinery near Saskatoon for further processing to high value metal products. Fortune plans to be a significant, reliable North American-based supplier of high purity cobalt cathode and/or sulphate and bismuth ingot, together with gold doré and by-product copper cathode and nickel precipitates.
About Fortune Minerals:
Fortune is a diversified resource company with several mineral deposits and a number of exploration projects, all located in Canada. The Company is focused on the development of the Mount Klappan anthracite metallurgical coal deposits in BC and the NICO gold-cobalt-bismuth-copper deposit in the Northwest Territories ('NT'). As part of the development of the NICO deposit, Fortune is developing a hydrometallurgical plant in Saskatchewan to process NICO concentrates to high value metal products. The Company has also acquired the buildings and equipment from the Golden Giant Mine at Hemlo, Ontario, which have been dismantled, moved, and stored for relocation to NICO. In addition, the Company owns the Sue-Dianne copper-silver-gold deposit and other exploration projects in the NT. Fortune is focused on outstanding performance and growth of shareholder value through assembly and development of high quality mineral resource projects.
This press release contains forward-looking information. This forward-looking information includes statements with respect to, among other things, the proposed development of the NICO project, the pursuit of a strategic partner for the NICO project and the proposed development of the Saskatchewan Metals Processing Plant ('SMPP'). Forward-looking information is based on the opinions and estimates of management at the date the information is given, and 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 inherent risks involved in the exploration and development of mineral properties, the inherent volatility of metal prices, the risk that the Company may not be able to arrange the necessary financing to construct and operate the NICO mine and the SMPP, the risk that the Company may not be able to secure a strategic partner for the NICO project, uncertainties with respect to the receipt or timing of required permits for the development of the NICO project and the SMPP, the possibility of delays in the commencement of production from the NICO project and construction of the SMPP and other factors. 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.
Fortune Minerals Limited
CONTACT:
Fortune Minerals Limited Renmark Financial Communications
Robin Goad, President, or Barbara
Troy Nazarewicz Komorowski: bkomorowski@renmarkfinancial.com,
Investor Relations or
Manager Bettina
info@fortuneminerals.com Filippone: bfilippone@renmarkfinancial.com
Tel.: (519) 858-8188 Montreal Tel: (514) 939-3989, Toronto Tel.
Fax: (519) 858-8155 (416) 644-2020
www.fortuneminerals.com Montreal Fax: (514) 939-3717, Toronto Fax.
(416) 644-2021
www.renmarkfinancial.com