Fortune Minerals is evaluating its options
with the Saskatchewan Government and has identified several
alternative sites for its hydrometallurgical plant in other
jurisdictions
Issued Capital: 347,303,220
LONDON, ON, March 26, 2019 /CNW/ - Fortune Minerals
Limited (TSX: FT) (OTCQX: FTMDF)
("Fortune" or the "Company")
(www.fortuneminerals.com) reports that the Rural Municipality of
Corman Park ("Corman Park") has rejected the Company's application
to change the zoning of its lands near the town of Langham, Saskatchewan from "Agriculture" to
"M2 Rural Industrial". The rezoning is required to construct and
operate a hydrometallurgical facility to process metal concentrates
from the Company's planned NICO Cobalt-Gold-Bismuth-Copper mine in
the Northwest Territories to
cobalt battery materials, gold, and bismuth for the growing green
economy.
Fortune owns 478 acres in Corman Park through a wholly-owned
subsidiary. These lands were identified in consultation with the
Saskatchewan Ministry of Economy and the Saskatoon Regional
Economic Development Authority who encouraged the Company to locate
the refinery in Saskatchewan.
Fortune received environmental assessment approval from the
Saskatchewan Ministry of Environment in 2014, which concluded that,
"The proposal was assessed to be both environmentally and
technically sound, providing both environmental safeguards and
outlining company plans to ensure Saskatchewan's air, water, and natural
resources are protected throughout the duration of the project and
after." The Saskatchewan Government continues to support the
project.
Fortune is considering its options with respect to its lands in
Corman Park. Over the past several months, the Company has also
been working on alternate plans in the event of a negative zoning
change decision. These include identification of other sites in
Saskatchewan and other
jurisdictions to build the facility in a supportive municipality
that wants to attract economic opportunities and participate in the
production of energy metals and their potential spinoff businesses.
Fortune is also evaluating a lower cost start-up option of selling
metal concentrates and gold doré directly from the proposed mine to
defer construction of a refinery.
Fortune's proposed hydrometallurgical plant would provide for 80
to 90 full-time employees with an annual payroll of approximately
$9 million. Using a typical
employment multiplier, this would result in two additional indirect
jobs for every employee adding another 170 jobs to the region.
Contracting opportunities during construction are estimated to be
valued at $76 million with annual
operational expenditures of approximately $25 million, totalling $525 million over the current mine life
estimate.
Products the Company plans to produce include cobalt compounds
needed to manufacture the cathodes of lithium ion batteries and
participate in the transition to a lower carbon future with
transformative automotive electrification and storage of
electricity to make energy use more efficient and enable more
renewable energy from wind and solar. Lithium ion batteries are
also used to power portable electronic devices such a mobile
telephones, portable computers, tablets, toys and power tools.
Bismuth is an eco-metal with growing demand as a non-toxic and
environmentally safe replacement for lead. The NICO mineral
reserves also contain more than a million ounces of gold.
About Fortune Minerals
Fortune is a Canadian mining company focused on developing the
NICO Cobalt-Gold-Bismuth-Copper project in the Northwest Territories. The Company owns lands
in Saskatchewan and also owns the
Sue-Dianne copper-silver-gold deposit located 25 km north of the
NICO Project, which is a potential future source of incremental
mill feed to extend the life of the NICO Project mill.
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This press release contains forward-looking information and
forward-looking statements within the meaning of applicable
securities legislation. This forward-looking information includes
statements with respect to, among other things, the Company's plans
to develop the NICO Project and build a hydrometallurgical refinery
in Saskatchewan or elsewhere, the
anticipated economic impact of such a refinery and the preparation
of an economic update for the NICO Project. 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 the necessary financing to continue operations and
develop the NICO Project; the receipt of all necessary regulatory
approvals and the timing thereof; the rezoning of the Company's
current Saskatchewan property or
other lands to allow for the construction of such refinery, if
needed, and the timing thereof; the anticipated economic impact of
such a refinery; the timing of the economic update for the NICO
Project and the results thereof; growth in the demand for cobalt;
the time required to construct the NICO Project; and the
economic environment in which the Company will operate in the
future, including the price of gold, cobalt and other by-product
metals, anticipated costs and the volumes of metals to 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 NICO on favourable terms or at all, uncertainties with
respect to the receipt or timing of required permits, approvals and
agreements for the development of the Nico Project, the
construction of the NICO Project may take longer than anticipated,
the Company may not be able to secure offtake agreements for the
metals to be produced at the NICO Project, the Company may be able
to obtain the necessary re-zoning of its current Saskatchewan property or acquire a suitable
alternative property, the economic impact of a hydrometallurgical
refinery may not be as positive as anticipated, the planned
economic update for the NICO Project may take longer than
anticipated and the results thereof may not be as positive as
anticipated, the inherent risks involved in the exploration and
development of mineral properties and in the mining industry in
general, the market for rechargeable batteries and the use of
stationary storage cells may not grow to the extent anticipated,
the future supply of cobalt may not be as limited as anticipated,
the risk of decreases in the market prices of cobalt 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
estimating mineral resources and the risk that even if such
resources prove accurate the risk that such resources may not be
converted into mineral reserves, once economic conditions are
applied, the Company's production of cobalt and other metals may be
less than anticipated and other operational and development risks,
market risks and regulatory risks. 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