Forte Minerals Announces $1.5 Million Private Placement Offering

Rhea-AI Summary

Forte Minerals (CSE:CUAU, OTQB:FOMNF, Frankfurt:2OA) has announced a non-brokered private placement offering of up to 7.5 million units at CAD $0.20 per unit, aiming to raise CAD $1.5 million. Each unit includes one common share and a half-share purchase warrant, exercisable at CAD $0.30 within two years. The proceeds will fund a 1,200-meter drill program at Pucarini, a gold prospect, and other exploration activities at Esperanza and Alto Ruri. A statutory hold period of four months and one day applies. The offering is expected to close by June 30, 2024. A finder's fee of 6% may be paid to eligible advisors.

Positive

• Plans to raise CAD $1.5 million through private placement.
• Each unit priced attractively at CAD $0.20 with additional warrant incentive.
• Proceeds to fund initial 1,200m drill program at Pucarini, a promising gold prospect.
• Additional exploration at Esperanza and Alto Ruri, potentially increasing resource base.
• Finder's fee of 6% could attract more investment advisors.
• Expected closing date by June 30, 2024, indicates timely funding.

Negative

• Statutory hold period of four months and one day might restrict liquidity.
• Potential dilution of existing shares due to issuance of 7.5 million new units.
• Exploration and drill programs carry inherent risks and may not yield expected results.
• Dependence on successful fundraising and exploration outcomes to sustain operations.
• Exercise price of CAD $0.30 for warrants might not be attractive if the stock underperforms.

(Not for distribution to United States newswire services or for dissemination in the United States of America)

VANCOUVER, BC / ACCESSWIRE / June 5, 2024 / Forte Minerals Corp. ("Forte" or the "Company") (CSE:CUAU)(OTQB:FOMNF)(Frankfurt:2OA), is pleased to announce that it intends to complete a non-brokered private placement (the "Offering") of up to 7,500,000 units (each, a "Unit") for CAD $0.20 per Unit for gross proceeds of up to CAD $1,500,000.

Each Unit will consist of one common share (each, a "Share") and one-half of a common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to purchase one additional common share (each, a "Warrant Share") at an exercise price of CAD $0.30 per Warrant Share for two years from the closing date of the Offering.

All securities issued in connection with the Offering will be subject to a statutory hold period of four months and one day from the date of issuance in accordance with applicable securities laws.

Forte will allocate the net proceeds from the Offering to fund the initial 1,200 m drill program at Pucarini, a high sulfidation epithermal gold prospect that has never been drill-tested. This prospect exhibits anomalous gold in soil and rock geochemistry coincident with mapped advanced argillic alteration and high-chargeability, high-resistivity IP geophysical anomalies extending down to depths of 300 m over an area of 2 x 2 km.

The Company also plans to conduct a MT geophysical survey at Esperanza to delineate the exposed leached porphyry copper-molybdenum system under thin post-mineral cover. It will also fund a comprehensive surface exploration program at Alto Ruri alongside social engagement and drill permitting efforts. Remaining funds will go to general working capital purposes.

The Company may pay a finders' fee of 6% in cash and 6% in warrants to eligible investment advisors who introduce subscribers to the Offering in accordance with the policies of the Canadian Securities Exchange (the "CSE").

Forte Minerals intends to close the financing on or before June 30, 2024.

"We are grateful to our stakeholders and long-time supporters for their continued confidence in our vision and goals. This financing is a crucial step towards making a discovery at the Pucarini Gold Project and further exploring the potential at Esperanza and Alto Ruri. We look forward to updating our shareholders on our progress," said Patrick Elliott, President and CEO.

ABOUT FORTE MINERALS CORP.

Forte Minerals Corp., a junior exploration company that has blended assets in partnership with GlobeTrotters Resources Perú S.A.C., has built a robust portfolio of high-quality Cu and Au assets in Perú. The Company aims to generate significant value growth by strategically positioning permitted and drill-ready projects alongside historically discovered copper and gold projects. Notwithstanding its resource discovery and development focus, Forte is deeply committed to community engagement, environmental stewardship, and fulfilling its societal responsibilities.

On behalf of FORTE MINERALS CORP.
(signed) "Patrick Elliott"
Chief Executive Officer

For further information, please contact:
Forte Minerals Corp.
office: 604-983-8847
info@forteminerals.com
www.forteminerals.com

Certain statements included in this press release constitute forward-looking information or statements (collectively, "forward-looking statements"), including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", "may", "should" and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts but reflect current expectations regarding future results or events. This press release contains forward looking statements. These forward-looking statements and information reflect management's current beliefs and are based on assumptions made by and information currently available to the company with respect to the matter described in this new release. Forward-looking statements involve risks and uncertainties, which are based on current expectations as of the date of this release and subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Additional information about these assumptions and risks and uncertainties is contained under "Risk Factors and Uncertainties" in the Company's latest management's discussion and analysis, which is available under the Company's SEDAR+ profile at www.sedarplus.ca, and in other filings that the Company has made and may make with applicable securities authorities in the future..

Forward-looking statements are not a guarantee of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Factors that could cause the actual results to differ materially from those in forward-looking statements include the continued availability of capital and financing, and general economic, market or business conditions. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Although such statements are based on management's reasonable assumptions, there can be no assurance that the statements will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. The Company assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law. Readers should not place undue reliance on the Company's forward-looking statements.

Neither the Canadian Securities Exchange (the "CSE") nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Forte Minerals Corp

View the original press release on accesswire.com

FAQ

What is the purpose of Forte Minerals' CAD $1.5 million private placement offering?

The funds will be used for a 1,200-meter drill program at the Pucarini gold prospect and additional exploration activities at Esperanza and Alto Ruri.

What is the unit price for Forte Minerals' private placement offering?

Each unit is priced at CAD $0.20.

What does each unit in Forte Minerals' private placement offering consist of?

Each unit includes one common share and one-half of a common share purchase warrant.

When is the expected closing date for Forte Minerals' private placement offering?

Forte Minerals expects to close the offering on or before June 30, 2024.

What is the exercise price for the warrants included in Forte Minerals' units?

The exercise price is CAD $0.30 per warrant share, exercisable within two years.

What is the statutory hold period for the securities issued in Forte Minerals' offering?

The hold period is four months and one day from the date of issuance.

What are the additional exploration activities funded by the offering proceeds?

Funds will also support an MT geophysical survey at Esperanza and surface exploration at Alto Ruri.

Will Forte Minerals pay any fees to advisors for the private placement offering?

Yes, a finder's fee of 6% in cash and 6% in warrants may be paid to eligible investment advisors.