Business
Fortune Minerals Completes the Purchase of the Revenue Silver Mine in Colorado on Amended Terms and Closes US$ 25 Million Tranche of the US$ 35 Million Lascaux Financing
Company investing capital to improve safety and mine operating efficiencies Issued Cap...
About this update from Fortune Minerals Limited
[{"type":"text","content":"\n\nCompany investing capital to improve safety and mine operating efficiencies\n\nIssued Capital: 194,578,180\n\n/NOT FOR DISSEMINATION IN THE UNITED STATES OR TO UNITED STATES NEWSWIRE SERVICES/\n\n\n\nLONDON, ON, Oct. 1, 2014 /CNW/ - Fortune Minerals Limited (TSX: FT) (OTCQX: FTMDF) (\"Fortune\" or the \"Company\") (www.fortuneminerals.com) announces that it has received US$ 25 million and closed the purchase of a 100% interest in the Revenue Silver Mine (\"RSM\") in southwest Colorado, U.S.A. through its wholly-owned subsidiary Fortune Revenue Silver Mines, Inc. With the transition of ownership of the RSM now complete, Fortune has accomplished its goal of becoming a producing mining company with two organic development assets to grow the business.\n\nFortune received the US$ 25 million installment from the previously reported US$ 35 million production pre-pay facility from Lascaux Resource Capital Fund 1 LP (\"Lascaux\") (see Fortune News Release dated August 20, 2014). The second tranche of US$ 10 million is expected to close on October 16, 2014. Proceeds from this financing were used to fund the RSM acquisition, including amounts owing to the previous owner of the mine, make investments in the mine to improve operations, and provide working capital. The metal prepay facility is to be repaid from a fixed schedule of metal shipments from the RSM to Lascaux, plus interest over an amended five-year term. The facility includes a six-month grace period as Fortune completes the mine commissioning. New York-based KLR Group, LLC acted as advisor to Fortune in connection with this transaction.\n\nRobin Goad, Fortune's President and Chief Executive Officer commented, \"Our ability to arrange financing and close this purchase of the Revenue Silver Mine in a challenging capital market is a testament to our team. We look forward to completing the changeover of operations and are delighted to welcome the employees of the mine to Fortune as we continue with the ramp up to 400 tons per day and cash flow from operations.\"\n\nMike Romaniuk, Fortune's Vice President of Operations and Chief Operating Officer remarked, \"We are excited about the transition of ownership at the Revenue Silver Mine, and in keeping with our corporate values, safety is a top priority and major focus area during the transition period and for the life of the min...