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Announces Private Placement With Kinross
May 04, 2009 07:54AM
May 4, 2009
Fortress Announces Private Placement With Kinross
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 4, 2009) - Fortress Minerals Corp. ("Fortress" or the "Company") (TSX VENTURE:FST) is pleased to announce a Cdn $3.5 million private placement of 14 million common shares of the Company at a price of Cdn $0.25 per share. Kinross Gold Corporation ("Kinross") has agreed to acquire 10 million shares of the private placement for gross proceeds of Cdn $2.5 million and other parties have agreed to purchase 4 million shares for gross proceeds of Cdn $1 million. Upon completion of the private placement, Kinross will hold approximately 6% of the outstanding shares in the Company. Kinross will have the right to participate in future financings of Fortress to maintain its then-applicable equity interest. The private placement is subject to regulatory approval. Shares issued pursuant to the private placement will be subject to a four month hold period. Net proceeds of the private placement will be used towards ongoing work on the Svetloye Gold Project in Russia as well as for general working capital purposes.
The Svetloye gold project, which is located in eastern Russia, is owned 100% by the Company. Drilling to date has defined an estimated 1.428 million ounces of gold in the inferred category at a grade of 2.22 g/t gold (please see news release dated April 23, 2009 for complete details). An aggressive work program is planned for 2009 including trenching, sampling, geophysics and over 8,000 metres of drilling. Two diamond drill rigs will commence drilling in May 2009.
Lukas Lundin, President and CEO of Fortress, commented, "We are very pleased to have Kinross recognize our excellent team as well as the high potential of the Svetloye Gold Project. We look forward to further success on this exciting project and exploring new opportunities in Russia."
James C. Ashleman, P.Geo., a Qualified Person as defined by National Instrument 43-101, has reviewed and verified the technical information contained in this news release.