Fortress Partners With Gazprombank in Russia
Wed Apr 9, 10:15 AM
ca.news.finance.yahoo.com
VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 9, 2008) - Fortress Minerals Corp. ("Fortress" or "the Company") (TSX VENTURE: FST.V) is pleased to announce that the Company has agreed to purchase the remaining 49% interest in the Svetloye gold project ("Svetloye") from Freeport-McMoran Exploration Corp. ("Freeport") and to grant a purchase option for a 51% interest to Gazprombank, one of the three largest banks in Russia. The Company is also pleased to concurrently announce a new strategic partnership with Gazprombank.
The Company and Gazprombank have agreed to jointly pursue additional gold project acquisitions in Russia, capitalizing on the respective strengths of Fortress' mining expertise and Gazprombank's extensive relationships in Russia. The partnership also positions Fortress to succeed under proposed legislation in Russia, under which certain strategic sector assets, including gold deposits in excess of 50 tonnes (approximately 1.6 million ounces) of contained gold, are expected to require 51% ownership by a Russian partner.
Ian Slater, President and Chief Executive Officer of Fortress, stated: "We are honoured to have Gazprombank as our partner as we build Fortress into a leading Russia-focused gold producer. We look forward to a successful partnership for years to come with one of Russia's strongest and most influential enterprises."
Acquisition of Freeport Svetloye Interest
The Company shall pay US$8 million and issue four million Fortress shares to Freeport in exchange for its 49% project interest, increasing Fortress' ownership in Svetloye to 100%. The total consideration based upon Fortress' 20-day volume weighted average price equates to approximately C$13.5 million. Freeport will not have a right to any further payments or royalties from Svetloye.
Gazprombank Purchase Option
The Company has granted Gazprombank an option exercisable up to December 31, 2008 to purchase 51% of Svetloye. The purchase price includes:
1. US$47.75 million payable upon exercise by way of investment in the Svetloye joint venture company, which will be used in part to repay all loans from Fortress and in part to fund operations at Svetloye;
2. Reimbursement to Fortress of 51% of costs incurred at Svetloye between April 8, 2008 and the date of exercise, payable upon exercise; and
3. A bonus payable to Fortress at prefeasibility, contingent on the measured and indicated resource included in a prefeasibility report.
Haywood Securities Inc. acted as financial advisor to Fortress on the transaction.
The transactions are subject to regulatory approval. Fortress Minerals Corp. is a member of the Lundin Group of Companies and is listed on the Toronto Venture Exchange under the symbol 'FST'.
ON BEHALF OF THE BOARD
Ian Slater, President and CEO
This news release contains forward-looking statements concerning the Company's plans for its properties. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to political risks involving the Company's exploration and development of its properties, the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, the inability or failure to obtain adequate financing on a timely basis and other risks and uncertainties, including those described in the Company's periodic filings with the British Columbia Securities Commission. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not intend to update this information and disclaims any legal liability to the contrary.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Contacts
Sophia Shane
Fortress Minerals Corp.
Corporate Development
(604) 689-7842
Website: www.fortressminerals.com |
