HALIFAX,
NS, Dec. 18, 2023 /CNW/ - Fortune Bay Corp.
(TSXV: FOR) (FWB: 5QN) (OTCQX: FTBYF) ("Fortune Bay" or the
"Company") is pleased to announce that it has entered into a
definitive option agreement (the "Agreement"), dated
December 15, 2023, with
1443904 B.C. Ltd. (the
"Optionee"), an arms-length private company. Pursuant to the
Agreement, the Optionee will be granted the right to acquire up to
a 70% interest in the Company's wholly owned Murmac and Strike
Uranium Projects (the "Projects") over a three-and-a-half-year
period by funding C$6 million in exploration
expenditures, making cash payments totalling C$1.35 million, and issuing
C$2.15 million in
common shares following completion of a going public
transaction.
The Projects include mineral claims totalling 19,877 hectares
located along the northwestern margin of the Athabasca Basin, near Uranium City, Saskatchewan, in the prolific
Beaverlodge mining district where
approximately 70 million pounds of
U3O8 was produced between 1950 and 1982 (see
Figure 1). The Projects have potential for high-grade,
basement-hosted uranium deposits in a geological setting similar to
other major discoveries on the Basin margin. This potential has
been confirmed through initial drilling by Fortune Bay in 2022
which intersected favorable geology, alteration, geochemistry, and
uranium mineralization. For further details please see News
Releases dated December 7, 2022 and
December 13, 2022. The Projects
host approximately 63 kilometres of prospective
electromagnetic conductor packages which were not systematically
targeted and drill tested during historical exploration efforts,
which predominantly targeted Beaverlodge-style mineralization. A
significant number of historical high-grade
(>1% U3O8) uranium
showings occur within the Projects, in addition to historical
small-scale uranium mining at the Tena prospect.
Key Terms of the
Agreement
Pursuant to the terms of the Agreement, the Optionee shall have
the right to earn up to a seventy (70%) percent
interest in the Projects in consideration for a series of cash
payments, the issuance of common shares following completion of a
going public transaction, and incurring certain exploration
expenditures, as follows:
|
Cash
(C$)
|
Consideration
Shares (C$)
|
Exploration
Expenditures (C$)
|
Interest
Earned
|
Signing of the
Agreement
(the "Execution
Date")
|
$200,000(1)
|
$200,000(2)
|
Nil
|
|
12 month
anniversary
of Execution
Date
|
$200,000
|
$200,000(3)
|
$1,000,000
|
24 month
anniversary
of Execution
Date
|
$250,000
|
$250,000(3)
|
$2,000,000
|
Total (First
Option)
|
$650,000
|
$650,000
|
$3,000,000
|
51 %
|
36 month
anniversary
of Execution
Date
|
$300,000
|
$300,000(3)
|
$3,000,000
|
|
Total (Second
Option)
|
$300,000
|
$300,000
|
$3,000,000
|
60 %
|
42 month
anniversary
of Execution
Date
|
$400,000
|
$1,200,000(3)
|
Nil
|
|
Total (Third
Option)
|
$400,000
|
$1,200,000
|
Nil
|
70 %
|
Grand
Total
|
$1,350,000
|
$2,150,000
|
$6,000,000
|
|
Notes:
|
|
(1)
|
Payable to the Company
immediately upon the entering into the Agreement.
|
(2)
|
Issuable to the Company
upon completion of a going public transaction, at the transaction
price for the going public transaction. The price at which the
Consideration Shares are issued being referred to as the
"Transaction Price".
|
(3)
|
Issuable at the
Transaction Price.
|
The Company will act as the operator during the option period
and will be entitled to charge a management fee of 10% of
expenditures incurred on the Projects.
A participating Joint Venture ("JV") will be formed at the end
of the option period, consistent with customary JV Terms, as
defined in the Agreement, with mutual intent to negotiate and
execute a definitive JV agreement. The JV will allow for dilution
and should the Company's interest fall below 10% the Company will
be granted (i) a 1% net smelter returns ("NSR") royalty on the
Murmac Property (the "1% Royalty"), and (ii) a 2% NSR royalty on
the Strike Property. One-half (0.5%) percent of the 1% Royalty may
be repurchased at any time prior to commercial production for a
cash payment of C$1.5 million.
During exploration programs, the Projects will benefit from use
of the Company's camp and facilities located in Uranium City upon commercially reasonable
terms.
Historical Results
Further details regarding the historical uranium occurrences
noted in this news release can be found within the Saskatchewan
Mineral Deposit Index ("SMDI"). Fortune Bay has verified the
majority of these occurrences through field prospecting and
sampling, however there is a risk that any future confirmation work
and exploration may produce results that substantially differ from
the unverified historical results. The Company considers these
unverified historical results relevant to assess the mineralization
and economic potential of the property. The Company also cautions
that past results, discoveries and production on proximate land are
not necessarily indicative of the results that may be achieved on
the subject properties.
Qualified Person
The technical and scientific information in this news release
has been reviewed and approved by Gareth
Garlick, P.Geo., Technical Director of the Company, who is a
Qualified Person as defined by NI 43-101. Mr.
Garlick is an employee of Fortune Bay and is not independent of the
Company under NI 43-101.
About Fortune Bay
Fortune Bay Corp. (TSXV: FOR, FWB: 5QN, OTCQX: FTBYF) is an
exploration and development company with 100% ownership in two
advanced gold exploration projects in Canada, Saskatchewan (Goldfields Project) and
Mexico, Chiapas (Ixhuatán Project), both with
exploration and development potential. The Company is also
advancing the 100% owned Strike and Murmac uranium exploration
projects, located near the Goldfields Project, which have
high-grade potential typical of the Athabasca Basin. The Company has a goal of
building a mid-tier exploration and development Company through the
advancement of its existing projects and the strategic acquisition
of new projects to create a pipeline of growth opportunities. The
Company's corporate strategy is driven by a Board and Management
team with a proven track record of discovery, project development
and value creation. Further information on Fortune Bay and its
assets can be found on the Company's website at
www.fortunebaycorp.com or by contacting us as
info@fortunebaycorp.com or by telephone at
902-334-1919.
On behalf of Fortune Bay Corp.
"Dale Verran"
Chief Executive Officer
Cautionary Statement Regarding Forward-Looking
Information
Information set forth in this news
release contains forward-looking statements that are based on
assumptions as of the date of this news release. These statements
reflect management's current estimates, beliefs, intentions, and
expectations. They are not guarantees of future performance. Words
such as "expects", "aims", "anticipates", "targets", "goals",
"projects", "intends", "plans", "believes", "seeks", "estimates",
"continues", "may", variations of such words, and similar
expressions and references to future periods, are intended to
identify such forward-looking statements.
Since forward-looking statements are based on assumptions and
address future events and conditions, by their very nature they
involve inherent risks and uncertainties. Although these statements
are based on information currently available to the Company, the
Company provides no assurance that actual results will meet
management's expectations. Risks, uncertainties and other factors
involved with forward-looking information could cause actual
events, results, performance, prospects and opportunities to differ
materially from those expressed or implied by such forward-looking
information. Forward looking information in this news release
includes, but is not limited to, the Company's objectives, goals,
intentions or future plans, statements, exploration results,
potential mineralization, the estimation of mineral resources,
exploration and mine development plans, timing of the commencement
of operations and estimates of market conditions. Factors that
could cause actual results to differ materially from such
forward-looking information include, but are not limited to failure
to identify mineral resources, failure to convert estimated mineral
resources to reserves, the inability to complete a feasibility
study which recommends a production decision, the preliminary
nature of metallurgical test results, delays in obtaining or
failures to obtain required governmental, environmental or other
project approvals, political risks, inability to fulfill the duty
to accommodate First Nations and other indigenous peoples,
inability to reach access agreements with other Project
communities, amendments to applicable mining laws, uncertainties
relating to the availability and costs of financing needed in the
future, changes in equity markets, inflation, changes in exchange
rates, fluctuations in commodity prices, delays in the development
of projects, capital and operating costs varying significantly from
estimates and the other risks involved in the mineral exploration
and development industry, and those risks set out in the Company's
public documents filed on SEDAR. Although the Company believes that
the assumptions and factors used in preparing the forward-looking
information in this news release are reasonable, undue reliance
should not be placed on such information, which only applies as of
the date of this news release, and no assurance can be given that
such events will occur in the disclosed time frames or at all. The
Company disclaims any intention or obligation to update or revise
any forward-looking information, whether as a result of new
information, future events or otherwise, other than as required by
law. For more information on Fortune Bay, readers should refer to
Fortune Bay's website at www.fortunebaycorp.com.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Fortune Bay Corp.