Monday, May 04, 2009

Gold, Kinross and Lukas Lundin: Fortress Announces Private Placement With Kinross. FST.v, KGC,, SNU.v, TNR.v, CZX.v

We have wrote recently about "Gold and Lukas Lundin with his Midas Touch", when he announced creation of Global Exploration company on the base of Canadian Gold Hunter
We were wondering: what is going to be next and now we have our first answer. This story is about a very substantial Gold deposit with high grades, but very special investment environment. It is Russia. Lukas lost Ozernoe Zinc deposit in Russia last year due to politic games around strategic reserves, but with followed collapse in all zinc plays he should not be very upset by now. By the way he has still around 10%, before Chinese Tongling investment, in Canada Zinc Metals CZX.v, which is in stable Canada and could become another 100 mil tones Zinc play one day. In Fortress Minerals his Russian partner is Gazprom Bank - powerful Mr Putin's base. It can open all doors in Russia, but can make any cooperation Chicago style as well. Now with Kinross Gold moving into the picture Mr Lukas is hedging his bets and puting his baby in a strong technical hands. Gazprom and Kinross Gold in Russia is a very powerful mix and now, if there will happen to be confirmed a huge deposit, for Russian hardliners it will be difficult to lose the partners along the way.
We are monitoring situation on:
Sanu Resources SNU.v which could become logically part of Global Exploartion company - Canadian Gold Hunter, CEO of SNU.v became CEO of
Canada Zinc Metals CZX.v with its Chinese move and Lukas still in the picture.
TNR Gold TNR.v with its Los Azules play, where Lukas invested via Minera Andes MAI.v, J/Vs with Canadian Gold Hunters and recent International Lithium development.

"Press Release Source: Fortress Minerals Corp.
Fortress Announces Private Placement With Kinross
On Monday May 4, 2009, 10:53 am EDT
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 4, 2009) - Fortress Minerals Corp. ("Fortress" or the "Company") (TSX VENTURE:FST - News) 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.
Lukas H. Lundin, President and CEO"
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