HALIFAX, June 13, 2016 /CNW/ - Fortune Bay Corp. ("Fortune Bay" or the "Company") (TSX: FOR) is pleased to provide the following update on the transaction with Kneat Solutions Limited and the spin-out of Fortune Bay's mining assets as more particularly described in the management information circular of the Company dated May 13, 2016 (the "Circular").  The annual and special meeting of shareholders of the Company is to be held on June 15, 2016 in Halifax, Nova Scotia, at which the transaction will be voted on by Fortune Bay shareholders.

The effective date of the Plan of Arrangement involving Fortune Bay and 9617337 Canada Limited is expected to occur on June 23, 2016. The Plan of Arrangement is subject to final approval by the Ontario Superior Court of Justice whose hearing for the final order to approve the Plan of Arrangement is scheduled to take place on June 17, 2016. Included with this press release is a copy of the Notice of Application with respect to the court hearing on June 17, 2016.

The effective date of the Merger Scheme of Arrangement involving Kneat Solutions Limited and its shareholders is expected to occur on June 24, 2016. The Merger Scheme of Arrangement is subject to final approval by the High Court of Ireland whose hearing for the final order to approve the Merger Scheme of Arrangement is scheduled to take place on June 24, 2016.

The Transaction is expected to close during the week of June 27, 2016.

Additional information regarding the terms of the Transaction are set in the Circular, which is available under the Fortune Bay profile on SEDAR at www.sedar.com.

SOURCE Fortune Bay Corp.