Fortune Minerals announces $1.2 million financing
Listing: TSX, symbol "FT"
Issued Capital: 19,575,546
TORONTO, June 17 /CNW/ - Fortune Minerals is pleased to announce that it
has completed an arms-length private placement to raise gross proceeds of $1.2
million. Pursuant to the private placement Fortune has issued an aggregate of
(1,846,220) common shares at a price of $0.65 per share and (1,384,663) common
share purchase warrants exercisable at a price of $0.95 per share before June
17, 2003. Approximately 30% of the common shares were issued on a "flow-
through" basis. Proceeds from the financing will be used to fund further work
on the company's mineral projects in Canada and for working capital.
Fortune Minerals recently announced an agreement to acquire, through its
wholly-owned Fortune Coal Limited subsidiary, the Mount Klappan anthracite
coal project near Stewart, British Columbia from Conoco Canada Resources
Limited. Completion of this transaction is subject to conditions, including
due-diligence evaluation of the project currently in progress. Mount Klappan
contains substantial resources of high quality anthracite rank coal in four
deposits, including mineable reserves in the proposed Lost-Fox Mine. The
acquisition is expected to close in July.
Fortune Minerals owns an 80% interest in the NICO cobalt-gold-bismuth
deposit in the Northwest Territories. Further will focus on delineation and
evaluation of an underground bulk mining approach toward extraction of the
gold-rich higher-grade core of the deposit and smaller pits to access near-
surface mineralization at the deposit ends. Fortune Minerals also owns a 100%
interest in the nearby Sue-Dianne copper-silver deposit through a wholly-owned
subsidiary. Reconnaissance work is planned on the recently staked Slave claims
located along the south shore of Great Slave Lake, 9km from the community of
Reliance, Northwest Territories. Previous work on the property during the
1960's identified copper-gold mineralization within a 30m wide zone, including
high-grade gold intersections over narrower widths.
Fortune Minerals is the operating partner in and a significant
shareholder of Formosa Environmental Aggregates Ltd., an industrial mineral
company developing the Greenock high calcium limestone quarry in Ontario. |
