Business
Fortune Minerals receives US$ 4 million bridge loan installment toward Lascaux Production pre-pay facility to fund Revenue Silver Mine acquisition
The mine has made four shipments of concentrate to the smelter & received its first rev...
About this update from Fortune Minerals Limited
[{"type":"text","content":"\n\nThe mine has made four shipments of concentrate to the smelter & received its first revenue\n\nIssued Capital:  194,578,180 \n\n\n\nLONDON, ON, Sept. 18, 2014 /CNW/ - Fortune Minerals Limited (TSX: FT) (OTCQX: FTMDF) (\"Fortune\" or the \"Company\") (www.fortuneminerals.com) announces receipt of the previously announced US$4 million bridge loan that is part of the production pre-pay facility from Lascaux Resource Capital Fund 1 LP (\"Lascaux\") (see Fortune News Release dated August 20, 2014). Proceeds from this financing are being used to fund the acquisition of the remaining interest in the Revenue Silver Mine (\"RSM\") in southwest Colorado, U.S.A., make capital improvements to the mine, and to provide working capital. \n\nThe Company is also pleased to report that the RSM has received its first revenue from the sale of concentrates to a smelter. Four concentrate shipments have been made and the mine is continuing with commissioning toward its ramp up to a 400 ton per day production rate.\n\nRobin Goad, Fortune's President and Chief Executive Officer commented, \"We are very pleased to be working with Lascaux as our financial partner to help complete the Revenue Silver Mine acquisition and complete work to improve operating efficiencies at the mine required to achieve full production. The production pre-pay funding arrangement is an elegant solution to minimize equity dilution in a difficult capital market environment.\"\n\nFortune, 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. Fortune Revenue can complete the acquisition of a 100% interest in the RSM by paying the owners US$15.5 million by October 1, 2014, with an obligation to pay a further US$10 million following completion of the acquisition. \n\nWith completion of the acquisition of the RSM, Fortune would achieve its goal of becoming an operating company with two significant organic growth projects: the NICO gold-cobalt-bismuth-copper development in the Northwest Territories (\"NT\") and related refinery in Saskatchewan; and the Arctos anthracite metallurgical coal project in British Columbia.\n\nAbout the Revenue Silver Mine:\n\nThe RSM is a fully constructed and permitted, high-grad...