Fortune Minerals Stock Price, News & Analysis

Fortune Minerals has entered a convertible securities funding agreement with Lind Partners worth up to C$10 million. An initial drawdown of C$1.25 million was used to make a C$1 million downpayment for an Alberta refinery site. The company plans to build a hydrometallurgical refinery to process metal concentrates from its NICO Project. The first convertible security has a two-year term and is secured by a lien on Fortune's assets. Lind can convert this security into shares at a discount to market price. Fortune can repurchase the security after 180 days, subject to conditions. Lind also receives a C$50,000 closing fee and 12.5 million warrants.

Fortune has amended its option agreement with JFSL for the 77-acre site, making payments totaling C$1.4375 million toward a C$5.5 million purchase price, with the balance due by June 28, 2024. JFSL and its parent, Worley Group, have specific usage and preferential rights post-acquisition. The Toronto Stock Exchange has conditionally approved the funding agreement.

Fortune Minerals has secured up to C$7.5 million from the Government of Canada to advance its NICO Project, which aims to produce cobalt, gold, bismuth, and copper. This funding complements a US$6.38 million award from the U.S. Department of Defense, bringing total non-dilutive funding to C$16.2 million. The NICO Project includes a planned mine in the Northwest Territories and a refinery in Alberta. The additional funds will support engineering and test work, including a feasibility study, a sensitivity analysis, and a FEED study. The project aligns with the Canada-U.S. Joint Action Plan on Critical Minerals Collaboration and aims to enhance North American supply chain transparency and reliability.

Fortune Minerals has secured a $6.38 million U.S. Department of Defense grant to accelerate the NICO Project, aiming to expand cobalt production for battery and high-strength alloy industries. This funding will advance the project's construction decision and includes metallurgical tests, securing permits, preparing management plans, and updating the feasibility study. The NICO Project will provide critical minerals like cobalt, gold, bismuth, and copper in North America, reducing dependence on imports from politically unstable regions. The project aligns with U.S.-Canada Critical Minerals Collaboration and supports the Inflation Reduction Act’s goals, making electric vehicles more tax-credit eligible. Annual production is projected at 1,800 metric tonnes of cobalt, 47,000 Troy ounces of gold, 1,700 tonnes of bismuth, and 300 tonnes of copper, potentially enhancing the battery supply chain and e-mobility transition.