Fortune Minerals announces closing of the second tranche of the Procon private placement

/NOT FOR DISSEMINATION IN THE UNITED STATES OR TO UNITED STATES NEWSWIRE SERVICES/

Strategic investor maintains 19.43% interest in the Company after shareholder ratification

Issued Capital: 190,244,847

LONDON, ON, July 8, 2014 /CNW/ - Fortune Minerals Ltd. (TSX: FT) (OTCQX: FTMDF) ("Fortune" or the "Company") (www.fortuneminerals.com) is pleased to announce that it has closed the second tranche of a private placement with Procon Resources Inc. ("Procon"). Procon purchased an additional 2,086,127 shares of Fortune at a price of CAD$ 0.40 per share for proceeds of CAD$ 834,450.80 following the approval of disinterested shareholders at the Annual and Special Meeting of Shareholders held on June 24, 2014. Proceeds from this private placement will be used for working capital purposes.

Procon purchased the additional shares of Fortune pursuant to its pre-emptive right to maintain a 19.43% interest in the Company. Procon had already completed a private placement purchase of 5,631,744 shares at a price of CAD$ 0.40 per share for net proceeds of CAD$ 2,252,697.60 in May, 2014. These shares were acquired as part of a larger financing by Fortune to purchase its initial interest in the Revenue Silver Mine in southwest Colorado, U.S.A. Fortune is now the Operator of the Revenue Silver Mine and can complete the purchase of a 100% interest in the mine by paying the vendors US$ 14 million by July 31, 2014. Fortune will also have an obligation to pay the vendors US$ 34.5 to US$ 36.8 million in deferred quarterly installments over 3.5 to 5.75 years as determined by revenue targets commencing in August, 2015 (See Fortune News Release May 9, 2014).

Fortune is also advancing development of its NICO Gold-Cobalt-Bismuth-Copper Project, which consists of a proposed mine and mill in Canada's Northwest Territories ("NT") and a hydrometallurgical refinery in Saskatchewan where concentrates from the mine will be processed to higher value metal and chemical products. Fortune plans to be a reliable, vertically integrated North American supplier of cobalt sulphate to the rapidly expanding rechargeable battery industry and support growth in the use of lithium ion and nickel metal hydride batteries in portable electronic devices and electric vehicles. With 12% of the global reserves of bismuth, NICO will also be an important new supplier of bismuth metals and oxide used in the automotive, chemical and pharmaceutical industries. Bismuth is also experiencing significant demand growth as a non-toxic, environmentally safe replacement for lead in solders, brasses, steels and aluminum alloys where lead has been banned by legislation or reduced because of greater environmental awareness. NICO also contains a significant gold co-product and minor by-product copper. Fortune recently received its environmental assessment ("EA") and major permit approvals for the NICO mine and concentrator in the NT as well as its EA approval for the refinery in Saskatchewan. The Company plans to commence construction activities upon receipt of project financing for which negotiations are advancing with a strategic partner and its banks.

These securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state, and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. This press release does not constitute an offer to sell or a solicitation of an offer to buy these securities in the United States or in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

The disclosure of scientific and technical information contained in this press release has been approved by Robin Goad, M.Sc., P.Geo., President and Chief Executive Officer of Fortune Minerals Ltd., who is a "Qualified Person" under National Instrument 43-101.

About Procon

Procon is a full service mining contractor providing services in underground and open pit mining, mill construction and rehabilitation, heavy equipment rental and maintenance, and industrial services for infrastructure for the mining, forestry, and construction industries. The corporation has one of the largest owned fleets of mining equipment and has ranked as one of the leading mining contractors in North America and one of the top thirty general contractors in Canada. Procon is majority owned by China CAMC Engineering Co. Ltd. ("CAMCE"). CAMCE's core business is international engineering-procurement-construction ("EPC") services, contracting, trading, and domestic and overseas project investment. With extensive experience in international project management, CAMCE has completed large turnkey projects in Asia, Africa, Europe, Latin America and the Caribbean in the fields of transportation, municipal engineering, irrigation and water works, power development, construction materials, food processing, textiles, petrochemicals, agricultural and construction equipment, and telecommunications. 

About Fortune Minerals

Fortune is a diversified North American mining and development company. Fortune operates the Revenue Silver Mine in Colorado and is developing the vertically integrated NICO gold-cobalt-bismuth-copper project that is comprised of a proposed mine and mill in the NT that will produce a bulk concentrate for shipment to a refinery in Saskatchewan for processing to high value metal and chemical products. Fortune is also developing the Arctos anthracite metallurgical coal project in British Columbia and owns the Sue-Dianne copper-silver-gold deposit and other exploration projects in the NT. Fortune is focused on outstanding performance and growth of shareholder value through assembly and development of high quality mineral resource projects.

This press release contains "forward-looking information" and "forward looking statements" within the meaning of applicable Canadian and United States legislation, respectively (collectively, "forward looking information"). This forward-looking information includes statements with respect to, among other things, the proposed financing and construction of the NICO mine and the proposed hydrometallurgical refinery in Saskatchewan ("SMPP"); the anticipated supply of cobalt and bismuth products to be generated from the NICO mine and the SMPP to various industrial users; the anticipated production of gold and copper at the NICO mine; and the anticipated completion of the acquisition of 100% of the Revenue Silver mine ("RSM"). Forward-looking information is based on the opinions and estimates of management as well as certain assumptions at the date the information is given (including, in respect of the forward-looking information contained in this press release, assumptions regarding: the Company's ability to complete the necessary financing for the NICO project and the SMPP; the Company's ability to generate certain products from the NICO mine and the SMPP and the industrial demand for such products; and the Company's ability to complete the necessary financing for the RSM acquisition. However, such forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. These factors include the inherent risks involved in the exploration and development of mineral properties, the risk that the Company may not be able to arrange the necessary financing to construct and operate the NICO mine and the SMPP, uncertainties with respect to the receipt or timing of required permits for the development of the NICO project and the SMPP, the possibility of delays in the commencement of production from the NICO project and the SMPP; the possibility that the industrial demand for the cobalt and bismuth products to be generated from the SMPP may be less than anticipated; the risk that the Company may not be able to arrange the necessary financing to complete the acquisition of the RSM; and other factors. In addition, the risk factors described or referred to in Fortune's Annual Information Form for the year ended December 31, 2013, which is available on the SEDAR website, should be reviewed in conjunction with the information contained in this news release. Readers are cautioned to not place undue reliance on forward-looking information because it is possible that predictions, forecasts, projections and other forms of forward-looking information will not be achieved by the Company. The forward-looking information contained herein is made as of the date hereof and the Company assumes no responsibility to update or revise it to reflect new events or circumstances, except as required by law.

SOURCE Fortune Minerals Ltd.