Fortune Minerals closes Alberta refinery site purchase

Executive Summary

• Fortune Minerals Ltd. has closed a $3.8-million loan with Prosper NWT and completed the acquisition of a brownfield site in Lamont County, Alberta, for $6 million.
• The acquired site will be retrofitted to construct a hydrometallurgical facility to process concentrates from the NICO mine in the Northwest Territories, supporting the production of battery-grade cobalt sulphate, bismuth ingots, and copper cement.
• The transaction includes a license agreement allowing the seller, JFSL Field Services ULC, to continue using the facilities for up to 18 months while maintaining the site and covering operating costs.

Key Details

• Financing: Closed a $3.8-million loan with Prosper NWT (a public agency of the Government of the Northwest Territories). Prosper NWT holds security over the assets for the duration of the loan.
• Acquisition Cost: Total purchase price for the Lamont County, Alberta, site and facilities was $6 million.
• Payment Structure: $3,037,500 was paid in previous installments; the remainder was funded by the proceeds of the Prosper NWT loan.
• Seller: JFSL Field Services ULC.
• Site Details:
  • Located in Lamont County, part of the Alberta Industrial Heartland Association (AIHA).
  • Size: 76.78 acres.
  • Facilities: 42,000 square feet of serviced shops and facilities.
  • Adjacent to Canadian National Railway.
• License Agreement:
  • JFSL retains a license to use the site and facilities for up to 18 months.
  • Fortune has the right to terminate the license after one year with 60 days' prior notice.
  • JFSL has the right to terminate the license earlier with 60 days' prior notice.
  • JFSL is required to maintain facilities in current condition and pay utilities, security, insurance, and other operating costs during the license term.
• Project Scope (NICO):
  • Vertically integrated project comprising an open pit/underground mine and concentrator in the NWT and a hydrometallurgical facility in Alberta.
  • Target products: Battery-grade cobalt sulphate, bismuth ingots (associated with 12% of global reserves), copper cement, and gold (over one million ounces in-situ).
  • Strategic goal: Strengthen North American critical mineral supply chain resilience and reduce dependence on foreign entities.
• Technical Disclosure: Information approved by Robin Goad (CEO) and Alex Mezei (Chief Metallurgist) under National Instrument 43-101. Reference made to the April 2, 2014, Feasibility Study technical report filed on SEDAR+.

Notable Quotes

• No direct quotes from executives were included in the text of the release.