Business
Fortune Minerals receives share issuance approval to complete the purchase of the Revenue Silver Mine
Issued Capital: 194,578,180 LONDON, ON , Nov. 12, 2014 /CNW/ -  Fortune Minerals ...
About this update from Fortune Minerals Limited
[{"type":"text","content":"\n\nIssued Capital: 194,578,180 \n\n\n\nLONDON, ON, Nov. 12, 2014 /CNW/ - Fortune Minerals Limited (TSX: FT) (OTCQX: FTMDF) (\"Fortune\" or the \"Company\") (www.fortuneminerals.com) announces that it has received approval from the majority of disinterested shareholders of the Company to issue an aggregate of 17,744,000 common shares of the Company to the former owners (the \"Vendors\") of the Revenue Silver Mine (\"RSM\") in southwest Colorado. The issuance of these shares is the final instalment to complete the purchase of a 100% interest in the RSM (see Fortune News Release dated October 1, 2014). With the RSM acquisition, Fortune has successfully transitioned to a producing mining company with two organic development assets to grow the business.\n\nFortune entered into an amending agreement with the Vendors, whereby it agreed to pay US$3 million in cash and issue US$4 million in common shares of the Company instead of paying a final cash installment of US$10 million as originally negotiated. The approval of the majority of disinterested shareholders was required pursuant to the rules of the TSX because the aggregate number of shares issued in connection with the RSM acquisition exceeded 25% of the Company's common shares outstanding prior to the acquisition as described below. \n\nThe first phase of the RSM acquisition closed on May 9, 2014 and 32,000,000 common shares of the Company were issued to the Vendors to satisfy a portion of the purchase price. On this date, the Company also issued 5,631,744 common shares as the first tranche of a private placement related to the acquisition, which was followed by a subsequent issuance of 2,086,127 common shares in a second tranche after shareholder approval was obtained to this issuance at the Company's Annual General Meeting. The issuance of the aforesaid 39,717,871 common shares, when added to the issuance of the additional 17,744,000 shares in satisfaction of the final installment of the purchase of the RSM acquisition, represents approximately 38.1% of the number of common shares of the Company that were outstanding immediately prior to May 9, 2014. \n\nThe approval of shareholders for the additional 17,744,000 common shares was obtained by way of a written consent solicitation as permitted by the TSX pursuant to subsection 604(d) of the TSX Company Manual which provides f...