Funds will complete payments to Revenue Mine vendors & for working capital
LONDON, ON, Oct. 16, 2014 /CNW/ - Fortune Minerals Limited (TSX: FT) (OTCQX: FTMDF) ("Fortune" or the "Company") (www.fortuneminerals.com) announces that it has received the second and final instalment of US$ 10 million from the previously reported US$ 35 million production prepay facility from Lascaux Resource Capital Fund 1 LP ("Lascaux") (see Fortune News Release dated October 1, 2014). A portion of the proceeds from this financing were used to fund the Revenue Silver Mine ("RSM") acquisition, including amounts owing to the previous owner of the mine, and the balance will be used to 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 a five-year term. The facility includes a six-month grace period as Fortune completes the mine commissioning.
About the Revenue Silver Mine:
The RSM is an operating high-grade, underground silver mine with a 400 ton per day mill and concentrator located in an underground excavation. The mine is situated on 146 patented and unpatented mining claims, totaling approximately 1,095 acres in southwest Colorado, 11 km southwest of the town of Ouray and 490 km southwest of Denver. The RSM is an historic producer that operated between 1876 and 1912 by Caroline Mining Co. and had production estimated at approximately 15 million ounces of silver before the mill burned and the mine closed. The RSM is located in the prolific Sneffels silver mining district where there are many past producers. Fortune believes there is very good potential to identify additional resources on the mine property and in the district generally.
About Fortune Minerals:
Fortune is a diversified North American mining and development company that owns and operates the Revenue Silver Mine in Colorado. The Company is developing the vertically integrated NICO gold-cobalt-bismuth-copper project that is comprised of a proposed mine and mill in Canada'sNorthwest 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 projects.
The disclosure of scientific and technical information contained in this press release has been approved by Robin Goad, M.Sc., P.Geo., President and Chief Executive Officer of Fortune Minerals Limited, who is a "Qualified Person" under National Instrument 43-101.
This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities legislation. This forward-looking information includes statements with respect to, among other things, anticipated production from the RSM, the potential to identify additional resources in the area of the RSM and the proposed development of the NICO and Arctos projects. Forward-looking information is based on the opinions and estimates of management as well as certain assumptions at the date the information is given (including, in respect of the forward-looking information contained in this press release, assumptions regarding the Company's ability to repay Lascaux from production at the RSM, to identify additional resources near the RSM and to complete the development of the NICO and Arctos projects). However, such forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. These factors include the inherent risks involved in the exploration and development of mineral properties, unexpected technical delays and associated timing delays in the ramp-up of the RSM and associated production of silver and other metals; the risk that the Company may not be able to establish increased resources near the RSM; the risk that the Company may not be able to arrange the necessary financing to complete the NICO and Arctos projects; the risk that operating and/or capital costs may be materially higher than anticipated; the risk of decreases in the prices of relevant commodities; potential loss of key personnel; potential discrepancies between actual and estimated production; potential discrepancies between actual and estimated mineral resources or between actual and estimated metallurgical recoveries; potential labour shortages; the risk of mining accidents; the risk of changes in applicable laws or regulations; uncertainties with respect to the timing and receipt of all necessary permits; and other factors. In addition, the risk factors described or referred to in Fortune's Annual Information Form for the year ended December 31, 2013, which is available on the SEDAR website, should be reviewed in conjunction with the information contained in this news release. Readers are cautioned to not place undue reliance on forward-looking information because it is possible that predictions, forecasts, projections and other forms of forward-looking information will not be achieved by the Company. The forward-looking information contained herein is made as of the date hereof and the Company assumes no responsibility to update or revise it to reflect new events or circumstances, except as required by law.
SOURCE Fortune Minerals Limited