Fortune Minerals engages Haywood as financial advisor

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Haywood is committed to helping Fortune raise the necessary funds to advance the NICO Critical Minerals project to a construction decision

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LONDON, Ontario, May 16, 2022–(BUSINESS WIRE)–Fortune Minerals Limited (TSX: FT) (OTCQB: FTMDF) (“Fortune“or the”Company“) (www.fortuneminerals.com) is pleased to announce that it has engaged Haywood Securities Inc. (“Haywood“) to act as the Company’s financial advisor to support its near-term funding objectives. Haywood will assist Fortune in seeking to raise the necessary funds to execute the Company’s previously announced option to purchase the former site of the steel fabrication plant in Alberta’s industrial heartland northeast of Edmonton, where it plans to build the hydrometallurgical refinery for the NICO Cobalt-Gold-Bismuth-Copper project.”Nico Project“) (see the Company’s press release dated January 24, 2022). Haywood will also assist Fortune in its efforts to fund other activities necessary to advance the development of the NICO project toward an eventual construction decision, including the detailed engineering for an updated feasibility study to support project financing and completion of remaining environmental and permitting works, and for general corporate purposes, including working capital and debt repayment .assets in the world that can be developed in the timeframe necessary to meet today’s cathode chemistries for rechargeable batteries used in the transition to electric vehicles.

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Robin Goad, President and CEO of Fortune, said, “We are delighted to be working with Haywood, a leading Canadian metals and mining-focused investment bank, to help secure financing for short term to support the NICO Cobalt-Or-Bismuth-Copper project. until a construction decision. We look forward to working with Haywood and achieving our corporate goals.

In partial consideration for the services to be performed by Haywood, the Company has agreed to pay Haywood an initial engagement fee of C$50,000 to be settled by the issuance of 457,456 common shares of the Company (the “Shares“) to Haywood at a deemed price of C$0.1093 per share (being the 5-day volume-weighted average trading price of Fortune’s common stock on the Toronto Stock Exchange (“TSX”) at the close of business on May 12, 2022. The shares will be subject to a four-month hold period in accordance with applicable Canadian securities laws and the issuance of the shares remains subject to acceptance by the TSX.

NICO project:

Fortune has spent over C$135 million to grow the NICO project from an in-house discovery to a near-term producer with a 20-year supply of three critical minerals (cobalt, bismuth and copper) and more than 1.1 million ounces of gold on site. The NICO project includes a planned mine and processing plant in Canada’s Northwest Territories (“NWT“) and an associated hydrometallurgical refinery in Alberta that will process metal concentrates from the mine into cobalt sulfate, golden gold, bismuth ingots and oxide, and copper. The company has received environmental assessment approval and license Type “A” waterworks to build and The recent completion of the C$200 million Tlicho Highway to the community of Whati is a key catalyst for the NICO project, which, along with the planned branch road to mine, will allow metal concentrates to be trucked to the railroad for delivery to the refinery in Alberta.

In January 2022, Fortune entered into an option agreement with JFSL Field Services ULC to purchase its former steel fabrication facility in Lamont County, Alberta. This plant has the required planning approvals for industrial development and 40,000 square feet of serviced workshops and buildings located close to reagent sources, services and a switchable labor pool to significantly reduce the costs of the planned refinery and supporting operations.

This press release does not constitute an offer to sell or a solicitation of an offer to buy and there will be no sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Securities will not and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or applicable exemption from registration requirements.

About Fortune Minerals:

Fortune is a Canadian mining company focused on developing the NICO cobalt-gold-bismuth-copper Critical Minerals project in the Northwest Territories and Alberta. Fortune also owns the Sue-Dianne copper-silver-gold satellite deposit located 25 km north of the NICO deposit and is a potential future source of additional plant feed to extend the life of the plant and NICO concentrator.

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This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws. Such forward-looking information includes statements regarding, among other things, the Company’s ability to raise additional capital, the purchase of the industrial site on which the Company currently intends to build the hydrometallurgical refinery for the NICO project, the reimbursement or the restructuring of the Company’s current debt, the development of the NICO project, the potential for expansion of the NICO deposit and statements regarding drilling results and future drilling and assaying. Forward-looking information is based on management’s beliefs and estimates and certain assumptions as of the date the information is provided (including, with respect to the forward-looking information contained in this press release, assumptions regarding: the Company’s ability to successfully raise the capital necessary to achieve its short and long-term corporate objectives; the Company’s successful exercise of its option to purchase the industrial site on which it intends to build a Project NICO refinery; the completion of construction of a Project NICO refinery; the ability to arrange the necessary financing to continue operations and expand the NICO Project; federal and/or provincial government support for the Project NICO; the receipt of all necessary regulatory approvals for the construction and operation of the NICO Project and the hydrometallurgical refinery that related and the timing thereof; growing demand for cobalt; the time needed to build the NICO project; and the economic environment in which the Company will operate in the future, including the price of gold, cobalt and other metal by-products, expected costs and volumes of metals that will 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 Company may not be able to finance and develop the NICO project on favorable terms or at all, the 2021 drilling program may not result in a significant expansion of the NICO deposit, the effects of a slowdown in the global market, pressure on raw material prices and/or COVID-19 on the Company’s capital raising efforts, the Company may not be able to finalize the purchase of the industrial site located in the industrial heartland of Alberta northeast of Edmonton and to secure a site for the construction of a refinery, uncertainties regarding the receipt or timing of permits, approvals and agreements required for the development of the NICO project, including the associated hydrometallurgical refinery, the construction of the NICO project may take longer than expected, the Company may not be able to enter into extraction agreements for the metals to be produced at the NICO project, the Company’s Sue-Dianne property may not be developed to the point of being able to provide milling feed to the NICO project, the risks inherent in the exploration and development of the mineral properties and the he mining industry in general, the market for products that use cobalt or bismuth may not grow to the extent expected, the future supply of cobalt and bismuth may not be as limited as expected, the risk of lower prices market for 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 the estimation of resources and reserves mineral resources and the risk that even if such mineral resources prove to be accurate the risk that such mineral resources will not be converted into mineral reserves once prevailing economic conditions, the Company’s production of cobalt, bismuth and other metals may be lower than anticipated operational and development and other risks, market risks and regulatory risks. Readers are cautioned not to place undue reliance on forward-looking information because predictions, forecasts, projections and other forms of forward-looking information may not be made 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.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20220516005641/en/

contacts

For more information, please contact:
Fortune Minerals Limited
Troy Nazarewicz
Investor Relations Manager
[email protected]
Tel: (519) 858-8188
www.fortuneminerals.com

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