Fortune Minerals Enters Into Convertible Securities Funding Agreement for up to C$10 Million With Lind Partners
Fortune Minerals has entered a convertible securities funding agreement with Lind Partners worth up to C$10 million. An initial drawdown of C$1.25 million was used to make a C$1 million downpayment for an Alberta refinery site. The company plans to build a hydrometallurgical refinery to process metal concentrates from its NICO Project. The first convertible security has a two-year term and is secured by a lien on Fortune's assets. Lind can convert this security into shares at a discount to market price. Fortune can repurchase the security after 180 days, subject to conditions. Lind also receives a C$50,000 closing fee and 12.5 million warrants.
Fortune has amended its option agreement with JFSL for the 77-acre site, making payments totaling C$1.4375 million toward a C$5.5 million purchase price, with the balance due by June 28, 2024. JFSL and its parent, Worley Group, have specific usage and preferential rights post-acquisition. The Toronto Stock Exchange has conditionally approved the funding agreement.
- Convertible securities funding agreement worth up to C$10 million.
- Initial funding of C$1.25 million received.
- C$1 million downpayment made for Alberta refinery site.
- Plans to construct a hydrometallurgical refinery for NICO Project.
- Amended option agreement with JFSL for 77-acre site.
- Payments totaling C$1.4375 million made towards C$5.5 million purchase price.
- Toronto Stock Exchange conditional approval received.
- Convertible security has a two-year term secured by a lien on company's assets.
- Security can be converted into shares at 80% of five-day VWAP, potentially diluting shareholder value.
- A closing fee of C$50,000 and 12.5 million warrants issued.
- Balance of C$4.0625 million due by June 28, 2024, carrying financial obligations.
Initial
NOT FOR DISTRIBUTION TO
The first convertible security has a two-year term with a face value of
Fortune is also pleased to report that it has entered into an amended option agreement with JFSL to acquire its 77-acre site and 42,000 square feet of serviced shops and buildings located in Lamont County Alberta where the Company plans to construct and operate the Alberta Refinery. Fortune has completed option payments to JFSL, totalling
The Toronto Stock Exchange (the “TSX”) has provided conditional approval in respect of the Funding Agreement.
This press release shall not constitute an offer to sell or solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in
About The Lind Partners:
The Lind Partners manages institutional funds that are leaders in providing growth capital to small- and mid-cap companies publicly traded in the US,
About Fortune Minerals:
Fortune is a Canadian mining company focused on developing the NICO cobalt-gold-bismuth-copper critical minerals project in the NWT and
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This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities legislation. This forward-looking information includes statements with respect to, among other things, additional drawdowns under the Funding Agreement, use of the first drawdown under the Funding Agreement, the exercise by the Company of its option to purchase of the JFSL site, the successful construction and completion of the proposed hydrometallurgical refinery at the JFSL site, and the Company’s plans to develop the NICO Project, including the successful the development and construction of the planned NICO cobalt-gold-bismuth-copper mine and concentrator. Forward-looking information is based on the opinions and estimates of management as well as certain assumptions at the date the information is given (including, in respect of the forward-looking information contained in this press release, assumptions regarding: final approval by the TSX in respect of the Funding Agreement and related matters; extension of the option in respect of the JFSL site; the Company’s ability to secure the necessary financing to fund the exercise of the option and complete the purchase of the JFSL site; the Company’s ability to complete construction of a NICO Project refinery; the Company’s ability to arrange the necessary financing to continue operations and develop the NICO Project; the receipt of all necessary regulatory approvals for the construction and operation of the NICO Project, including the planned NICO cobalt-gold-bismuth-copper mine and concentrator and the timing thereof; growth in the demand for cobalt; the time required to construct the NICO Project; and the economic environment in which the Company will operate in the future, including the price of gold, cobalt and other by-product metals, anticipated costs and the volumes of metals to be produced at the NICO Project). However, such forward-looking information 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 risks that the TSX may not provide final approval in respect of the Funding Agreement and related matters, that global geopolitical situations may interfere with the Company’s ability to continue development of the NICO Project, the Company may not be able to complete the purchase of the JFSL site and secure a site for the construction of a refinery, the Company may not be able to finance and develop NICO on favourable terms or at all, uncertainties with respect to the receipt or timing of required permits, approvals and agreements for the development of the NICO Project, including the related hydrometallurgical refinery, the construction of the NICO Project may take longer than anticipated, the Company may not be able to secure offtake agreements for the metals to be produced at the NICO Project, the Sue-Dianne Property may not be developed to the point where it can provide mill feed to the NICO Project, the inherent risks involved in the exploration and development of mineral properties and in the mining industry in general, the market for products that use cobalt or bismuth may not grow to the extent anticipated, the future supply of cobalt and bismuth may not be as limited as anticipated, the risk of decreases in the market prices of cobalt, bismuth and other metals to be produced by the NICO Project, discrepancies between actual and estimated Mineral Resources or between actual and estimated metallurgical recoveries, uncertainties associated with estimating Mineral Resources and Reserves and the risk that even if such Mineral Resources prove accurate the risk that such Mineral Resources may not be converted into Mineral Reserves once economic conditions are applied, the Company’s production of cobalt, bismuth and other metals may be less than anticipated and other operational and development risks, market risks and regulatory risks. 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240522310279/en/
For further information please contact:
Fortune Minerals Limited
Troy Nazarewicz
Investor Relations Manager
info@fortuneminerals.com
Tel: (519) 858-8188
www.fortuneminerals.com
Source: Fortune Minerals Limited
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