COLORADO – Fortune Minerals of London, ON, has executed term sheets with Lascaux Resource Capital Fund to provide US$35 million to finance the acquisition of the remaining interest in the Revenue silver mine. Fortune will repay the amount with metal shipments plus interest over a four-year period.
Fortune acquired a 12% interest in the mine and became the operator by issuing 32.0 million Fortune shares to the mine owners earlier this year. The purchase agreement has been amended, and Fortune will complete the acquisition of a 100% interest in the project by paying the owners US$15.5 million now and an additional US$10 million when the acquisition is completed on Oct. 1, 2014. Fortune also has an obligation to make payments totalling US$4.5 million to the previous owners.
The Revenue mine is a 400-t/d underground operation and mill. The target production is 1.86 million oz of silver annually. It is located near the town of Ouray, 490 km southwest of Denver. The mineS produced about 15 million oz of silver between 1876 and 1912.
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