Fortune Minerals stock soars on government funding for NICO critical minerals project
Fortune Minerals (TSX: FT) shares soared on Tuesday after the Canadian miner announced government funding of up to C$887,170 to support the development of its NICO cobalt-gold-bismuth-copper project.
The NICO project represents an advanced-stage critical minerals asset comprised of a planned open pit and underground mine and concentrator in the Northwest Territories and related hydrometallurgical refinery in Alberta.
The proposed Alberta refinery would process concentrates from the future mine at the NICO project and other sources to produce cobalt sulphate, gold doré, bismuth ingots and copper.
Discovered by Fortune in 1996, the NICO deposit contains proven and probable reserves totalling 33.1 million tonnes grading 1.03 grams gold per tonne, 0.11% cobalt, 0.14% bismuth and 0.04% copper, containing 37.3 million kg of cobalt, 1.1 million oz. of gold, 46.3 million kg of bismuth, and 12.3 million kg of copper.
The company said the development of the NICO project would provide a vertically integrated Canadian supply for three critical minerals needed for the energy transition (cobalt, bismuth and copper) with North American supply chain transparency, as well as compliance with the US Inflation Reduction Act.
Of the government funding contributions, up to C$714,500 will be used on the costs of Fortune’s planned cobalt sulphate process pilot and other metallurgical test work through. The Alberta government has also conditionally approved funding contributions of up to C$172,670 toward the budgeted program costs.
In Tuesday’s news release, Fortune said that the funds will be used to support a mini-pilot to confirm certain process design criteria and improvements to the NICO project metallurgical processes. The program will also provide samples of concentrate that could be used in future tests with material sourced under the previously announced collaboration with Rio Tinto.
Shares of Fortune Minerals were up 28.6% by 12:20 p.m. in Toronto, giving the London-based miner a market capitalization of C$18.9 million ($13.9m).