8 March 2017
LONDON, ON, March 8, 2017 /CNW/ - Fortune Minerals Limited (TSX: FT) (OTCQX: FTMDF) ("Fortune" or the "Company") (www.fortuneminerals.com) is pleased to announce that it has closed its previously announced short form prospectus offering (the "Offering") of units (the "Units") of the Corporation with Cormark Securities Inc. (the "Underwriter"), acting as underwriter, on a bought deal basis. The Company has issued 25,800,000 Units at a price of $0.25 per Unit for total gross proceeds of $6,450,000 (including 3,000,000 Units issued as a result of the Underwriter exercising its over-allotment option in full).
Each Unit consists of one common share in the capital of the Company (a "Common Share") and one-half of one Common Share purchase warrant (each whole warrant, a "Warrant'). Each Warrant entitles the holder thereof to purchase one Common Share at a price of $0.35 at any time prior to 5:00 p.m. (Toronto time) on the date that is 2 years following the closing date of the Offering.
The net proceeds of the Offering are expected to be used to, among other things, update the feasibility study capital and operating costs for the NICO Cobalt-Gold-Bismuth-Copper project and for general corporate matters.