NORTHWEST TERRITORIES – Fortune Minerals of London, ON, has put the word out that the Chinese have made a strategic investment in the company. Procon Resources, the Vancouver-based mining contractor in which China CAMC Engineering has a majority interest, is investing $11.7 million in return for a 19.4% ownership stake in the Canadian company. Fortune will issue 29.25 million shares at a price of $0.40 per share, representing a 14% premium. Procon will have the right to appoint one director to the Fortune board.
Fortune is the owner of the NICO gold-cobalt-bismuth-copper project it discovered 160 km northwest of Yellowknife in 1996. The company proposes to build a mine and concentrator in NWT, but the planned hydrometallurgical refinery will be sited near Saskatoon, SK. Initial capital costs at the mine and mill site are pegged at $210.16 million and for the refinery at $230.36 million. Combined underground and open pit reserves total 32.99 million tonnes grading 1.02 g/t Au, 0.11% Co, 0.14% Bi and 0.04% Cu.
Fortune and Procon are working toward the start of construction at the mine site in 2014.
Additional information is available at FortuneMinerals.com.