Business
Fortune Minerals announces strategic investment by Procon Resources Inc.
/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\n/NOT FOR DISSEMINATION IN THE UNITED STATES OR TO UNITED STATES NEWSWIRE\n SERVICES/ \n\n\nFortune and Procon will work together to advance the development of the\n NICO Gold-Cobalt-Bismuth-Copper Project in the Northwest Territories \n\n\nIssued Capital:  121,276,976\nExcluding shares issued pursuant to agreement\n\n\nLONDON, ON, June 27, 2013 /CNW/ - Fortune Minerals Limited (TSX: FT) (OTCQX: FTMDF) (\"Fortune\" or the \"Company\") (www.fortuneminerals.com) is pleased to announce that Procon Resources Inc. (\"Procon\") has\n agreed to make a strategic investment of C$11.7 million in the capital\n stock of Fortune at a price of $0.40 per common share for a total of\n 29,250,000 newly issued common shares. The private placement will be\n completed in two tranches of $5,850,000 and will result in Procon\n holding a 19.4% ownership stake in the Company on a non-diluted basis. \n The issue price represents a 14% premium over Fortune's closing price\n on The Toronto Stock Exchange (\"TSX\") on June 26, 2013.\n\n\nProcon is a full-service mining contracting company headquartered in\n Vancouver, Canada. It is majority owned by China CAMC Engineering Co.,\n Ltd. (\"CAMCE\"), a leading provider of international engineering,\n procurement and construction (\"EPC\") services based in Beijing, China.\n\n\nPursuant to the private placement agreement, Procon will have the right\n to appoint one nominee to the board of directors of Fortune upon\n closing of the first tranche of the placement. Closing of the private\n placement is subject to customary closing conditions including the\n approval of the TSX. The first tranche is anticipated to close on July\n 25, 2013 and the second tranche is expected to close on October 1,\n 2013.\n\n\nFortune and Procon have also agreed to work together to advance the NICO\n Gold-Cobalt-Bismuth-Copper Project (\"NICO\" or the \"Project\") in the\n Northwest Territories (\"NT\"), Canada towards the objective of\n commencing construction activities in 2014, including completing\n project financing arrangements, detailed engineering, and a project\n execution plan.  Fortune will use the proceeds of the private placement\n financing to advance the Project and for working capital.\n\n\nMr. Robin Goad, CEO of Fortune commented, \"We are very proud to welcome\n Procon as a strategic investo...