Business
Fortune Minerals announces US$ 36 million in financings and amended terms to acquire a 100% interest in the Revenue Silver Mine in southwest Colorado, U.S.A.
/NOT FOR DISSEMINATION IN THE UNITED STATES OR TO UNITED STATES NEWSWIRE SERVICES/ ...
About this update from Fortune Minerals Limited
[{"type":"text","content":"\n\n/NOT FOR DISSEMINATION IN THE UNITED STATES OR TO UNITED STATES NEWSWIRE SERVICES/\n\nSignificant reduction in the purchase price with an accelerated payment schedule\n\nIssued Capital: 193,578,180\n\n\n\nLONDON, ON, Aug. 20, 2014 /CNW/ - Fortune Minerals Limited (TSX: FT) (OTCQX: FTMDF) (\"Fortune\" or the \"Company\") (www.fortuneminerals.com) announces that it has entered into an agreement with the owners of the Revenue Silver Mine (\"RSM\") in southwest Colorado, U.S.A. to amend the terms under which it can acquire the remaining interest in the mine with lower payment terms under an accelerated schedule. Fortune has also executed term sheets with Lascaux Resource Capital Fund I LP (\"Lascaux\") to provide US$35 million to finance the acquisition under a metal prepay facility that is repaid with a fixed schedule of metal shipments from the RSM plus interest over a 4-year period. The Company, through its wholly-owned subsidiary Fortune Revenue Silver Mines Inc. (\"Fortune Revenue\"), acquired an initial 12% participating interest in the RSM in May 2014 and has been the Operator of the mine since that time. \n\nRobin Goad, Fortune's President and Chief Executive Officer commented, \"We are very pleased to announce an amended agreement to complete the acquisition of the Revenue Silver Mine under more attractive terms. The financing structure also preserves the ability of Fortune's shareholders to maximize their participation in future upside opportunities from any increase in commodity prices and potential delineation of new resources from the mine's significant exploration potential.\"\n\nPursuant to the amending agreement, Fortune Revenue can now complete the acquisition of a 100% interest in the RSM by paying the owners US$15.5 million, with an obligation to pay a further US$10 million following completion of the acquisition. Under the previous terms of the agreement, Fortune Revenue was obligated to make an initial cash payment of US$14 million with aggregate deferred payment obligations of US$34.5 to US$36.8 million. Fortune Revenue will continue to have an obligation to make payments in the aggregate amount of US$4.5 million to the previous owner of the RSM. The target closing date for the transaction has been extended from September 2, 2014 to October 1, 2014.\n\nIn order to finance the acquisition and operations of t...