Business
Fortune Minerals announces substantial completion of Golden Giant Mine dismantling and demolition
Issued Capital: 64,890,857 LONDON, ON, Aug. 12 /CNW/ - Fortune Minerals Limited (TSX-FT) ("Fortun...
About this update from Fortune Minerals Limited
[{"type":"text","content":"\n\n\n\nIssued Capital: 64,890,857\n\n\nLONDON, ON, Aug. 12 /CNW/ - Fortune Minerals Limited (TSX-FT) ("Fortune\nMinerals" or the "Company") is pleased to provide an update of the dismantling\nand demolition of the Golden Giant Mine at Hemlo, Ontario for the relocation\nof certain buildings and equipment to the Company's NICO\ngold-cobalt-bismuth-copper mine development in the Northwest Territories. The\ndismantling and demolition of the Golden Giant Mine facilities is\nsubstantially complete and valuable equipment is being stored at the site\nunder an amended agreement with Newmont Canada Limited ("Newmont") pending\nreceipt of permits for NICO. The buildings and equipment salvaged from Golden\nGiant will have a material impact on reducing the capital costs for the NICO\ndevelopment.\n\n\nFortune Minerals acquired certain Golden Giant Mine buildings, equipment\nand an inventory of spare parts from Newmont and Mindecom Industrial\nConstructors Limited ("Mindecom") in 2006 after the mine closed, and the\nremainder of the buildings from Newmont in 2008. Valuable assets salvaged from\nthe mine for use at NICO include buildings, grinding mills, the crushing\nplant, flotation cells, compressors, boilers, generator, conveyors, pumps,\nmotors, overhead cranes, transformers, assay laboratory, and electrical switch\ngear. Fortune Minerals is pleased to announce that it has entered into an\namending agreement with Newmont that will allow the Company to maintain the\nservice complex building and store its assets at the Hemlo site until\nrequired, but no later than April 1, 2011.\n\n\nFortune Minerals has generated significant cash proceeds from the sale of\ngold recovered from residues and other materials collected during cleanup of\nthe Golden Giant Mine assets. Approximately 135 tonnes of high-grade materials\nwere processed or, are awaiting settlement at refineries in Canada and the\nUnited States. The Company also sold approximately 8,200 tonnes of recyclable\nscrap steel, copper and other metals from the mill, head frame and other\nbuildings that were demolished at the Hemlo site. Additional funds were\ngenerated from the sale of surplus equipment and buildings, including a jaw\ncrusher, the paste fill plant and building, cold storage buildings, furnaces,\noffice and other small equipment that w...