COAL DEVELOPMENT: Fortune takes Posco as partner for Mount Klappan project

BRITISH COLUMBIA - Fortune Minerals, based in London, ON, has formed an 80:20 joint venture with Posco Canada to develop the Mount Klappan metallurgical coal project 330 km northeast of the port of Prince Rupert. Posco is a subsidiary of one of the world's largest steel producers with headquarters in South Korea.

Posco will take a 20% interest in Mount Klappan for an anticipated investment of $181 million, including $30 million as soon as the deal closes. Posco's investment requires that it pay 20% of the development costs and 20% of the operating costs in return for receiving 20% of the clean coal from the mine. Fortune will be the operator.

With 2.8 billion tonnes of coal, Mount Klappan is called one of the largest undeveloped deposits of metallurgical coal in the world. Indicated resources are 123.0 million tonnes, inferred resources are 359.2 million tonnes, and the remainder is speculative resources. The feasibility study recommends that mining begin at the Lost Fox deposit. The initial production rate will be 3.0 million t/y of ultra-low volatile pulverized coal injection (PCI) product.

Details are available at www.FortuneMinerals.com