COLORADO – Fortune Minerals of London, ON, has completed the first stage of purchasing the recently reopened Revenue silver mine in the southwest part of the state from a private vendor. The acquisition will be made in stages, with the first stage representing a 12% interest financed by the issuance of 32.0 million Fortune common shares to the owners of the Revenue mine.
Plans call for financing the remaining stages with US$16 million in cash, up to US$36.8 million in deferred payments over 6.5 years, and assumption of obligations to make additional deferred payments of US$4.5 million. The previous owners will retain a capped 2% net smelter return.
The purchase of the Revenue mine includes a fully permitted, underground silver producer ramping up to feed a 400-t/d mill. The first concentrate was produced earlier this month. The project has a 13-year life and average annual production of 1.78 million oz of silver plus gold, lead and zinc by-production credits. Fortune is the operator of the mine and already has staff at the project.
The resources include 195,277 measured tonnes, 531,774 indicated tonnes and 620,569 inferred tonnes. The measured and indicated resources contain 16.3 million oz of silver, and the inferred portion contains 10.1 million oz. Fortune said in a release that there is exploration potential in two main veins beyond the current resource model and five unexplored veins that intersect the ramp. There are also about 635,000 tonnes of mineralized material in stockpiles.