Fortune Minerals Announces Extension of Revenue Silver Mine Purchase Agreement

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[{"type":"text","content":"\n\nIssued Capital: 190,244,847\n\n\n\nLONDON, ON, July 31, 2014 /CNW/ - Fortune Minerals Limited (TSX: FT) (OTCQX: FTMDF) (\"Fortune\" or the \"Company\") (www.fortuneminerals.com) announces that it has entered into an amending agreement with the owners of the Revenue Silver Mine in southwest Colorado, U.S.A. to extend the scheduled closing date of the purchase and sale of the mine from July 31 to September 2, 2014. The Company, through its wholly-owned subsidiary, Fortune Revenue Silver Mines Inc. (\"Fortune Revenue\") has already completed the purchase of a 12% participating interest in the mine and can acquire a 100% interest by paying the other owners an additional US$ 14 million and issuing a promissory note to pay US$ 34.5 to US$ 36.8 million in deferred quarterly installments. Two deferred payments totaling US$ 4.5 million and a 2% net smelter return royalty capped at US$ 9 million would also be payable to former owners of the mine following completion of the acquisition. Fortune Revenue will continue to act as Operator of the mine pending completion or termination of the transaction and as part of the amending agreement, Fortune Revenue has increased its commitment to fund the working capital for the mine from US$ 4 million to US$ 5.5 million. \n\nCompletion of the acquisition by the Company of the remaining interest in the Revenue Silver Mine is subject to various conditions, including the Company arranging the necessary financing. The company is actively engaged in discussions with a number of potential financing sources.  \n\nAbout Fortune Minerals:\n\nFortune is a diversified North American mining and development company. Fortune operates the Revenue Silver Mine in Colorado and is developing the vertically integrated NICO gold-cobalt-bismuth-copper project that is comprised of a proposed mine and mill in the Northwest Territories (\"NT\") that will produce a bulk concentrate for shipment to a refinery in Saskatchewan for processing to high value metal and chemical products. Fortune is also developing the Arctos anthracite metallurgical coal project in British Columbia and owns the Sue-Dianne copper-silver-gold deposit and other exploration projects in the NT. Fortune is focused on outstanding performance and growth of shareholder value through assembly and development of high quality mineral resource proje...

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