Fortune Minerals Limited report that the recently announced joint venture agreement between its wholly owned subsidiary, Fortune Coal Limited and POSCO Canada Ltd and its wholly owned subsidiary, POSCO Klappan Coal Ltd to advance the Mount Klappan anthracite metallurgical coal project in northwest British Columbia to production, has now closed.

Pursuant to the joint venture agreement, POSCAN acquired a 20% interest in the Mount Klappan project by making its upfront cash payments to Fortune Coal, totaling USD 30 million. Based on current capital cost estimates, POSCAN is anticipated to make total payments and cash contributions of USD 181 million to develop the Mount Klappan mine and related railway infrastructure.

POSCAN will also fund 20% of the operating costs and receive 20% of the metallurgical coal products produced from the mine and wash plant. The Mount Klappan joint venture is owned 80% by Fortune and 20% by POSCAN and combines Fortune's local development and operations expertise with POSCAN's market knowledge and financial backing. Fortune will serve as Manager of the project and will be compensated, on a recovery basis, for providing operational, technical and administrative support over the life of the mine.