FORTUNE BAY ANNOUNCES CLOSING OF C$8 MILLION BOUGHT DEAL PRIVATE PLACEMENT
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On October 30, 2025, Fortune Bay announced the closing of its previously announced C$8 million bought deal private placement. The financing was co-led by Cormark Securities Inc. and Canaccord Genuity Corp.
The financing consisted of two parts: - 6,000,000 common shares ("Hard Dollar Shares") at a price of C$1.00 per share for gross proceeds of C$6,000,000. - 1,438,900 flow-through common shares ("Flow-Through Shares") at a price of C$1.39 per share for gross proceeds of C$2,000,071.
The total gross proceeds were C$8,000,071. The use of proceeds is designated for Canadian exploration expenses and advancing the Goldfields Gold Project (permitting and pre-feasibility studies), exploration at the Poma Rosa Project in Mexico, and for general corporate purposes.
In connection with the financing, the agents received a cash commission of C$477,004 and 443,334 non-transferable compensation warrants, with each warrant exercisable at C$1.00 for 24 months.
The closing of this C$8 million financing is a material and positive event for Fortune Bay. It successfully executes the plan announced on October 20 and fundamentally de-risks the company's near-term strategy by removing any financing overhang.
- Financial Position: As of the last reported financials (June 30, 2025), the company had C$1.75 million in cash. With an operating cash burn of approximately C$118k per month (based on H1 2025), this new capital provides a substantial runway of well over two years for G&A expenses and fully funds the planned project advancement activities.
- Strategic Execution: The proceeds are earmarked to directly advance the flagship Goldfields Project, as outlined in the September 23, 2025 updated PEA. This includes funding for pre-feasibility study (PFS) work, environmental baseline studies, permitting activities, and a planned 2,000-3,000 meter resource expansion drill program. Without this capital, progress would have been stalled.
- Valuation Benchmark: The hard dollar financing was completed at C$1.00 per share, slightly above the most recent closing price of C$0.96. This demonstrates strong institutional demand at this valuation level and provides a solid floor for the stock in the near term. The premium paid for the flow-through shares (C$1.39) is typical but further signals investor confidence in the exploration potential.
- Progression: This financing is the logical and necessary step following the highly positive updated PEA. The PEA demonstrated robust project economics (C$610M NPV5%), and this capital allows the company to build on that momentum and move the project up the value chain toward a development decision.
In summary, while the closing of an announced deal is expected, its successful completion is critical. It moves Fortune Bay from a company with a strong paper project to one that is well-capitalized to execute its plans and unlock further value.
Fortune Bay Corp. is a Canadian mining exploration company with a portfolio of gold and uranium assets in Canada and Mexico.
- Flagship Project: The company's primary focus is the 100% owned Goldfields Gold Project in northern Saskatchewan, Canada. It is an advanced-stage development project.
- Project Development: The September 2025 updated Preliminary Economic Assessment (PEA) outlines a 14-year mine life open-pit operation with an initial capital cost of C$301 million. The PEA highlights robust economics with an after-tax NPV (5%) of C$610 million and an IRR of 44%, based on a US$2,600/oz gold price. The project is significantly de-risked by its location, existing infrastructure, a large Indicated resource base (97% of the mine plan), and a valid, albeit dated, 2008 Environmental Impact Statement (EIS).
- Other Assets: The company is advancing its Poma Rosa gold project in Mexico and has partner-funded exploration ongoing at its Murmac and The Woods uranium projects in Saskatchewan, providing shareholders with discovery potential without diluting focus or capital from the flagship asset. All projects appear to be royalty-free based on the information provided.