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[STK] OTC-PINK:FTMDF Toronto:FT
[IN] MNG
[SU]
TO AUTO, AND BUSINESS EDITORS:
Global electric car company could source cobalt from new Langham,
Saskatchewan facility
Tesla to minimize environmental impact
Issued Capital: 150,526,976
LONDON, ON, April 4, 2014 /PRNewswire/ - Fortune Minerals Limited
(TSX: FT) (OTCQX: FTMDF) ("Fortune" or the "Company")
(www.fortuneminerals.com) is pleased with the recent reports that
Tesla Motors Inc. ("Tesla") plans to source its critical raw materials
as close as possible to its planned $5 billion lithium-ion battery
"gigafactory" in the southwest U.S. - with a preference for North
America suppliers to minimize environmental impacts and material
costs. Fortune's proposed refinery near Saskatoon in western Canada,
the Saskatchewan Metals Processing Plant ("SMPP"), will be constructed
in the community of Langham, and will stand out as a North American
facility dedicated to the production of cobalt chemicals needed to
manufacture rechargeable batteries used in electric vehicles like
Tesla's as well as in portable electronic devices. The Tesla Model S
uses Nickel Cobalt Aluminum cathode chemistry from Panasonic
containing 9% cobalt by weight. Lithium-ion batteries using other
cathode chemistries can contain up to 60% cobalt by weight.
The SMPP will also produce gold, bismuth metals and chemicals, and
byproduct copper. Notably, the bismuth market is experiencing
significant demand growth as a non-toxic, environmentally safe
replacement for lead in a number of products, including automotive
anti-corrosion coatings, windshield frits, pearlescent paints and
electronic solders. Fortune envisions that the SMPP could also be
expanded to include battery and metal recycling as a future business
opportunity in Langham.
Tesla spokesperson, Liz Jarvis-Shean, has noted that the electric car
manufacturer will look for North American suppliers of cobalt and
other materials needed to "establish a supply chain that is local and
focused on minimizing environmental impact." She further commented,
"One of the key reasons is to more completely consider the total
environmental impact of the supply chain while significantly reducing
battery cost. Our goal is to build batteries with the lowest
environmental impact possible and that necessitates looking at where
the raw materials come from and how much impact there was in mining,
processing and transporting them."
"Tesla's approach is a positive development for the future of our
SMPP," said Mike Romaniuk, Fortune's Vice President Operations and
Chief Operating Officer. "Our NICO gold-cobalt-bismuth copper project
comprised of a mine and mill in the Northwest Territories and the
processing facility in Saskatchewan will make us a vertically
integrated North American supplier of the cobalt chemicals needed by
battery manufacturers like Tesla."
Cobalt is a critical metal used in a number of important metallurgical
and chemical products, but susceptible to supply concerns with more
than 60% of mine production currently sourced from the Democratic
Republic of the Congo ("DRC"). China is currently responsible for
approximately 40% of refined cobalt production, primarily from DRC
material.
"Our company has been very aware of the pending proliferation of
electric vehicle use. It is gratifying to hear Tesla's recent
announcement confirming Fortune's NAFTA advantage as a future Canadian
supplier of the cobalt chemicals required by the automotive and
rechargeable battery industries", said Romaniuk. "We expect the
economic impact of this demand to create over 100 new jobs in
surrounding communities and millions in other spin-off benefits for
the area."
Fortune has already received its environmental assessment approvals
for the NICO mine and concentrator in the Northwest Territories ("NT")
as well as the refinery in Saskatchewan. Earlier this week, the
Company announced the results of an updated Feasibility Study for the
project by Micon International Limited (see Fortune news release,
dated April 2, 2014) that is being used to advance negotiations with
potential strategic partners and their banks. The development would
make the Company very well positioned to become a reliable North
American source of cobalt and bismuth to the automotive industry with
a very valuable gold co-product.
About Fortune Minerals
Fortune is a diversified resource company with several mineral
deposits and a number of exploration projects, all located in Canada.
The Company is focused on the development of the Arctos Anthracite
Project in British Columbia and the vertically integrated NICO
gold-cobalt-bismuth-copper project that is comprised of a mine and
mill in the NT that will produce a bulk concentrate for shipment to a
refinery for processing to high value metal products. In addition, the
Company 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. This
forward-looking information includes statements with respect to, among
other things, the proposed financing and development of the NICO
project and the SMPP, the permitting process for the NICO project and
the SMPP, the anticipated production from the SMPP and the number of
jobs and the economic benefits expected to be created by the SMPP.
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 arrange necessary financing for the NICO project and the
SMPP, obtain all necessary permits for the NICO project and the SMPP
and assumptions regarding the production from the SMPP and the number
of jobs and the economic benefits to be created by the SMPP. 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 or the SMPP,
uncertainties with respect to the receipt or timing of required
permits for the development of the NICO project or the SMPP, the
possibility of delays in the commencement of production from the NICO
project or construction of the SMPP and other factors. 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 Limited
-0- 04/04/2014
/CONTACT: Fortune Minerals Limited: Robin Goad, President, or Troy Nazarewicz, Investor Relations Manager, info@fortuneminerals.com, Tel.: (519) 858-8188, www.fortuneminerals.com; Renmark Financial Communications: Barbara Komorowski: bkomorowski@renmarkfinancial.com, or Farialle Pacha: fpacha@renmarkfinancial.com, Montreal Tel: (514) 939-3989, Toronto Tel. (416) 644-2020, www.renmarkfinancial.com
/Web Site: http://www.fortuneminerals.com
(OTC-PINK:FTMDF /
Toronto:FT) /
CO: Fortune Minerals Limited
ST: Ontario
IN: MNG
PRN
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0000 04/04/2014 17:56:00 EDT http://www.prnewswire.com
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