Business
Fortune Minerals announces closing of the second tranche of the Procon private placement
/NOT FOR DISSEMINATION IN THE UNITED STATES OR TO UNITED STATES NEWSWIRE SERVICES/ ...
About this update from Fortune Minerals Limited
[{"type":"text","content":"\n\n/NOT FOR DISSEMINATION IN THE UNITED STATES OR TO UNITED STATES NEWSWIRE SERVICES/\n\nStrategic investor maintains 19.43% interest in the Company after shareholder ratification\n\nIssued Capital: 190,244,847 \n\n\n\nLONDON, ON, July 8, 2014 /CNW/ - Fortune Minerals Limited (TSX: FT) (OTCQX: FTMDF) (\"Fortune\" or the \"Company\") (www.fortuneminerals.com) is pleased to announce that it has closed the second tranche of a private placement with Procon Resources Inc. (\"Procon\"). Procon purchased an additional 2,086,127 shares of Fortune at a price of CAD$ 0.40 per share for proceeds of CAD$ 834,450.80 following the approval of disinterested shareholders at the Annual and Special Meeting of Shareholders held on June 24, 2014. Proceeds from this private placement will be used for working capital purposes.\n\nProcon purchased the additional shares of Fortune pursuant to its pre-emptive right to maintain a 19.43% interest in the Company. Procon had already completed a private placement purchase of 5,631,744 shares at a price of CAD$ 0.40 per share for net proceeds of CAD$ 2,252,697.60 in May, 2014. These shares were acquired as part of a larger financing by Fortune to purchase its initial interest in the Revenue Silver Mine in southwest Colorado, U.S.A. Fortune is now the Operator of the Revenue Silver Mine and can complete the purchase of a 100% interest in the mine by paying the vendors US$ 14 million by July 31, 2014. Fortune will also have an obligation to pay the vendors US$ 34.5 to US$ 36.8 million in deferred quarterly installments over 3.5 to 5.75 years as determined by revenue targets commencing in August, 2015 (See Fortune News Release May 9, 2014).\n\nFortune is also advancing development of its NICO Gold-Cobalt-Bismuth-Copper Project, which consists of a proposed mine and mill in Canada's Northwest Territories (\"NT\") and a hydrometallurgical refinery in Saskatchewan where concentrates from the mine will be processed to higher value metal and chemical products. Fortune plans to be a reliable, vertically integrated North American supplier of cobalt sulphate to the rapidly expanding rechargeable battery industry and support growth in the use of lithium ion and nickel metal hydride batteries in portable electronic devices and electric vehicles. With 12% of the global reserves of bismuth, NICO will also be an i...