By Sheri Kasprzak
New York, March 23 - Fortress Minerals Corp. said it has concluded a C$1,510,548 private placement with Phelps Dodge Exploration Corp. as part of a strategic alliance between the two.
Phelps Dodge agreed to buy 766,776 shares of Fortress at C$1.97 each, a 52.7% premium to the company's C$1.29 closing stock price on March 23.
Under the terms of the strategic alliance, Phelps Dodge has the right to earn 70% interest in any identified project area in Mongolia after 2,000 meters of drilling by Fortress by funding exploration and development on any identified project area through to the end of feasibility.
So far, Phelps Dodge has given notice to Fortress that it intends to acquire 70% interest in the Teltiin Gol copper/gold project in Mongolia.
Proceeds from the private placement will be used for exploration on properties in Mongolia.
Based in Vancouver, B.C., Fortress is a mineral exploration company.
| Issuer: | Fortress Minerals Corp.
|
| Issue: | Stock
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| Amount: | C$1,510,548
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| Shares: | 766,776
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| Price: | C$1.97
|
| Warrants: | No
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| Investor: | Phelps Dodge Exploration Corp.
|
| Settlement date: | March 23
|
| Stock symbol: | TSX Venture: FST
|
| Stock price: | C$1.29 at close March 23
|
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