Fortune Bay closes $8-million private placement

Executive Summary

• Fortune Bay Corp. has closed a previously announced bought deal private placement, raising aggregate gross proceeds of $8,000,071.
• The offering consisted of 1,438,900 flow-through shares priced at $1.39 per share and 6,000,000 hard-dollar shares priced at $1.00 per share.
• Proceeds are designated for exploration expenses on the Goldfields gold project in Saskatchewan (via flow-through shares) and for permitting, prefeasibility studies, and exploration at Goldfields and Poma Rosa projects, plus working capital.

Key Details

• Total Gross Proceeds: $8,000,071.
• Flow-Through Shares (FT):
  • Quantity: 1,438,900 shares.
  • Price: $1.39 per share.
  • Gross Proceeds: $2,000,071.
  • Use of Proceeds: Eligible Canadian exploration expenses qualifying as flow-through mining expenditures related to the Goldfields gold project in Saskatchewan.
  • Renunciation Deadline: Qualifying expenditures of not less than the gross proceeds raised from FT shares must be incurred (or deemed incurred) on or before December 31, 2026, and renounced to initial purchasers with an effective date no later than December 31, 2025.
• Hard-Dollar Shares (HD):
  • Quantity: 6,000,000 shares.
  • Price: $1.00 per share.
  • Gross Proceeds: $6,000,000.
  • Use of Proceeds: Commencement of permitting activities and studies toward a prefeasibility study for the Goldfields gold project; commencement of exploration at the Poma Rosa project in Mexico (subject to community agreements and permits); and working capital/general corporate purposes.
• Underwriters: Cormark Securities Inc. acted as lead underwriter and sole bookrunner, with Canaccord Genuity Corp. and others as part of the syndicate.
• Commissions and Warrants:
  • Cash Commission: $477,004.26 (6% of gross proceeds, excluding HD shares sold to purchasers on a president's list).
  • Broker Warrants Issued: 443,334 warrants (6% of the number of HD and FT shares sold, excluding those on the president's list).
  • Warrant Terms: Each warrant entitles the holder to purchase one common share at $1.00 per share for a period of two years.
  • Hold Period: Broker warrants and underlying common shares are subject to a four-month-and-one-day hold period from the closing date.
• Regulatory Status: The offering remains subject to final approval of the TSX Venture Exchange. Issued pursuant to National Instrument 45-106 (Listed Issuer Financing Exemption).

Notable Quotes

• None provided in the text.