First quarter 2013 results filed
Issued Capital: 121,276,976
LONDON, ON, May 6, 2013 /CNW/ - Fortune Minerals Limited (TSX: FT) (OTCQX: FTMDF) ("Fortune Minerals" or the "Company") reports that its consolidated financial statements and management's discussion and analysis of financial condition and results of operations for the period ended March 31, 2013 have been filed and are available on SEDAR (www.sedar.com) or through the Company's web site (www.fortuneminerals.com).
Fortune has two advanced development assets: the Arctos Anthracite Project in northwest British Columbia ("BC"); and the NICO Gold-Cobalt-Bismuth-Copper Project in the Northwest Territories ("NT"), which will also include a proposed refinery to process concentrates to high value products. Both projects have been assessed in positive detailed feasibility studies, and their development risk mitigated from extensive work including test mining and pilot plant processing. Both projects are progressing through environmental assessments.
The following is reproduced from the Company's Annual Review and President's letter to shareholders forming part of the materials to be provided to shareholders in connection with the Company's annual meeting scheduled for June 25, 2013:
The past two and a half years have seen a sustained bear market for the resource industry that has eroded share prices for many companies. We, however, remain committed to our view that the Earth's inventory of readily accessible mineral deposits is in decline and companies with high quality assets will benefit from the increasing demand for commodities when confidence returns to our sector in the capital markets.
Over the past two years, Fortune Minerals has carefully managed its cash resources while successfully advancing its Arctos and NICO projects through detailed feasibility studies and the environmental assessment process. The 2012 Front-End Engineering and Design study completed for NICO demonstrated a positive rate of return for the development with a significant increase to the mineral reserves to 33 million tonnes, including a 20% increase in the gold content to 1.1 million ounces. With a positive recommendation for approval received recently from the Mackenzie Valley Review Board, the NICO project will be ready for construction upon receipt of the final permits and requisite project financing. Similarly, the updated Arctos feasibility study indicates robust economics with increased run-of-mine coal reserves of 125 million tonnes within a much larger underexplored historical resource. Based on the revised project description, the Arctos project is actively conducting environmental work to support the EA process.
Concurrent with advancing the operational side of our two development assets, Fortune Minerals has been pursuing a project financing strategy based on forming joint ventures with strategic partners and building on the successful first stage partnership we have with POSCO for our Arctos project. The current state of the capital markets only reinforces our view that this is the correct approach. The Company has been working with Deloitte & Touche Corporate Finance Canada, our financial advisor, to leverage its significant global platform and build important relationships with potential partners, particularly in Asia. Fortune Minerals is advancing discussions with prospective partners and is committed to successfully completing the plan.
I am very proud of the team we have assembled over the years at Fortune Minerals. We continue to build our capacity with the addition of key people needed to properly execute our plan, including the appointment of Mike Romaniuk as Vice President of Operations and Chief Operating Officer. Mike's expertise, gained from more than two decades with Xstrata Nickel and Falconbridge, includes managing complex mining projects through the various stages of development and operations and makes him a timely addition to lead the development of our NICO and Arctos projects.
Fortune Minerals recognizes the importance of sustainable development that balances economic opportunity with environmental stewardship and the social license to operate. Significant effort is being made to engage with communities and regulators to mitigate potential impacts from our developments and benefit First Nations and stakeholders. The Company's efforts are recognized by the Canadian Council for Aboriginal Business through our participation in the Progressive Aboriginal Relations program at the Committed Level. This "PAR" program is the first and only corporate responsibility assurance program in the world with an emphasis on aboriginal relations.
Fortune Minerals has the assets, the people and the plan to transition through construction and realize our goal of becoming a diversified Canadian producer of metallurgical coal, gold and specialty metals to service a world economy that needs access to raw materials.
Robin E. Goad, President and CEO
About Fortune Minerals:
Fortune Minerals is a diversified resource company with several mineral deposits and a number of exploration projects, all located in Canada. The Company is focused on the development of the Arctos Anthracite Project in British Columbia and the NICO gold-cobalt-bismuth-copper deposit in the Northwest Territories ("NT"). As part of the development of the NICO deposit, Fortune Minerals is developing the Saskatchewan Metals Processing Plant ("SMPP") in Saskatchewan to process NICO concentrates to high value metal products. In addition, the Company owns the Sue-Dianne copper-silver-gold deposit and other exploration projects in the NT. Fortune Minerals is focused on outstanding performance and growth of shareholder value through assembly and development of high quality mineral resource projects.
|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 the Company, who is a "qualified person" under National Instrument 43-101.|
|This discussion contains certain forward-looking information. This forward-looking information includes, or may be based upon, estimates, forecasts, and statements as to management's expectations with respect to, among other things, the size and quality of the Company's mineral resources, progress in development of mineral properties, securing of strategic investors for the Company's mineral projects, demand and market outlook for metals and coal and future metal and coal prices. Forward-looking information is based on the opinions and estimates of management at the date the information is given, and 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, uncertainties with respect to the receipt or timing of required permits and regulatory approvals, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal and coal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties with respect to the Company's ability to secure strategic investors, other uncertainties relating to the availability and costs of financing needed in the future, uncertainties related to metal recoveries 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