Major permitting completed for the mine and
concentrator in the Northwest
Territories
Issued Capital: 188,158,720
LONDON,
ON, June 20, 2014 /CNW/ -
Fortune Minerals Limited (TSX: FT) (OTCQX: FTMDF) ("Fortune"
or the "Company") (www.fortuneminerals.com) announces that the
Wek'èezhìi Land and Water Board in Canada's Northwest
Territories ("NT") has issued the Land Use Permit and
approved the Type A Water License required to construct and operate
the NICO gold-cobalt-bismuth-copper mine and concentrator on the
Company's mining leases located 160 km northwest of Yellowknife and 50 km north of the Tlicho
community of Whati. These are the primary permits required to
develop the NICO project following completion of the Company's
environmental assessment ("EA") for the project in 2013 (see News
Release, dated July 19, 2013). The
Company can now commence construction of the mine upon receipt of
project financing and after making the initial closure bond
payments to the Government of the Northwest Territories ("GNWT"). Fortune
continues to work with Deloitte Corporate Finance Canada Inc. to
secure project financing and negotiations are advancing with a
strategic partner and its banks.
On June 18, 2014
Fortune was issued the Land Use Permit and the Type A Water License
was recommended to the Honourable J. Michael Miltenberger, GNWT
Minister of Environment and Natural Resources, for final approval
and signature under the Mackenzie Valley Resource Management Act.
These permits were issued following a rigorous regulatory process
that involved review and input from the Tłįchǫ Government,
Aboriginal Affairs and Northern Development Canada, Environment
Canada, and the GNWT. The process considered the Measures outlined
by the Mackenzie Valley Impact Review Board in their earlier EA of
the project as well as conditions required pursuant to the Tłįchǫ
Land Settlement and Self Government Agreement, and the transition
of powers from the federal government to the GNWT following
devolution.
Dr. Richard
Schryer, Director of Regulatory and Environmental Affairs
for Fortune commented, "With these permits now in hand, Fortune can
commence construction of NICO. The Company is continuing to work
collaboratively with the Tłįchǫ people, local communities and
governments to make this a successful project that contributes
positively to the economy and social fabric of the Northwest
Territories. We are particularly proud that NICO will be a
catalyst for important legacy infrastructure development, including
the proposed Tlicho Road and an expanded electrical grid that will
also service nearby communities."
Robin Goad,
President and Chief Executive Officer of Fortune commented, "We are
very pleased to be in a position to construct the NICO mine and
concentrator upon receipt of financing. This positions the Company
for organic growth after entering into an agreement to purchase the
Revenue Silver Mine in Colorado."
(see News Release, dated May 9,
2014). He also said, "It is very gratifying to see NICO
advance from an in-house exploration success to become a
shovel-ready development asset after the expenditure of more than
$110 million over many years to
validate the project and reduce risks from its development. I want
to congratulate all of our team members who contributed to
achieving the critical milestones as we transition into the project
execution and construction phase of the development."
The NICO Project consists of a proposed open pit
and underground mine and mill in the NT that will produce a bulk
concentrate for shipment to the planned Saskatchewan Metals
Processing Plant ("SMPP") near Saskatoon for further processing to high value
metal and chemical products. NICO is positioned to become a
reliable, fully vertically integrated North American producer of
gold, bismuth metals & chemicals, cobalt chemicals, and
by-product copper. As a North American project, NICO is expected to
command significant interest from manufacturers that have concerns
about the concentration of supply for both cobalt and bismuth in
just two countries. More than 60% of cobalt mine production is
currently sourced from the politically unstable Democratic Republic of the Congo and 43% of
refinery production is from China.
Bismuth is principally sourced from China, which accounts for approximately 80% of
mine production and most of the refining. NICO will also benefit by
selling into the North American and European Union markets where it
has advantages from lower transportation costs and exemptions from
paying excise duties and tariffs under the North American Free
Trade Agreement ("NAFTA").
The SMPP will produce cobalt sulphate
heptahydrate, a chemical needed to manufacture lithium ion and
nickel metal hydride rechargeable batteries that are experiencing
significant demand growth in portable electronic devices and
electric vehicles. Fortune recently received a report from
Commodities Research Unit ("CRU") in the United Kingdom that confirmed the opportunity
of producing cobalt sulphate for the rechargeable battery industry,
its potential for growth, and the premiums that are realized in
various jurisdictions for the cobalt contained in sulphate over
cobalt metal. The SMPP will also produce bismuth ingots and needles
as well as bismuth oxide that have important uses in the automotive
and pharmaceutical industries. Bismuth is experiencing significant
demand growth as an environmentally safe and non-toxic replacement
for lead in a number of important products where lead has been
banned by legislation or reduced from policies governing the use of
toxic metals. These include solders, brasses, steels and other
alloys used in potable drinking water sources, electronics,
cosmetics, greases, ceramic glazes, pigments and other products
where there are environmental and / or health concerns.
The disclosure of scientific and technical
information contained in this press release has been approved by
Robin Goad, M.Sc., P.Geo., President
and Chief Executive Officer of Fortune Minerals Limited, who is a
"Qualified Person" under National Instrument 43-101.
About Fortune Minerals
Fortune is a diversified North American mining
and development company. It is the Operator of the Revenue
silver-gold-lead-zinc mine in Colorado,
U.S.A. Fortune is also developing the vertically integrated
NICO gold-cobalt-bismuth-copper mine and mill in the NT, the
proposed refinery in Saskatchewan,
and the Arctos anthracite metallurgical coal project in
British Columbia. The Company also
owns the Sue-Dianne copper-silver-gold deposit and other
exploration projects in the NT. Fortune is focused on outstanding
performance and growth of shareholder value through assembly,
development and operation of high quality mineral resource
projects.
This press release contains forward-looking
information. This forward-looking information includes statements
with respect to, among other things, the Company's expectations
with respect to the anticipated development of, and construction
at, the NICO project and the SMPP, the anticipated production from
the NICO project and the SMPP, arranging financing for the NICO
project and the SMPP, the anticipated expansion of the NT
electrical grid and the connection of the NICO project thereto and
the proposed acquisition of the majority interest in the Revenue
Silver Mine ("RSM")not currently owned by the Company.
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
the Company's ability to arrange necessary project and acquisition
financing and connect the NICO project to the NT electrical grid).
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
inherent risks involved in the exploration and development of
mineral properties, the inherent volatility of metal prices, the
risk that the Company may not be able to arrange the necessary
financing to construct and operate the NICO mine or the SMPP or to
complete the acqusition of the RSM, uncertainties with respect to
the receipt or timing of all applicable permits for the development
of the NICO project and the SMPP, the risk that the expansion of
the NT electrical grid may not proceed as expected, the risk that
the Company may not be able to arrange for the connection of the
NICO project to the NT electrical grid in a timely fashion or on
positive commercial terms and other factors. 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.
SOURCE Fortune Minerals Limited