Issued Capital: 190,244,847
LONDON, ON, July 31, 2014 /PRNewswire/ - Fortune Minerals
Limited (TSX: FT) (OTCQX: FTMDF) ("Fortune" or the "Company")
(www.fortuneminerals.com) announces that it has entered into an
amending agreement with the owners of the Revenue Silver Mine in
southwest Colorado, U.S.A. to
extend the scheduled closing date of the purchase and sale of the
mine from July 31 to September 2,
2014. The Company, through its wholly-owned subsidiary,
Fortune Revenue Silver Mines Inc. ("Fortune Revenue") has already
completed the purchase of a 12% participating interest in the mine
and can acquire a 100% interest by paying the other owners an
additional US$ 14 million and issuing
a promissory note to pay US$ 34.5 to US$
36.8 million in deferred quarterly installments. Two
deferred payments totaling US$ 4.5
million and a 2% net smelter return royalty capped at
US$ 9 million would also be payable
to former owners of the mine following completion of the
acquisition. Fortune Revenue will continue to act as Operator of
the mine pending completion or termination of the transaction and
as part of the amending agreement, Fortune Revenue has increased
its commitment to fund the working capital for the mine from
US$ 4 million to US$ 5.5 million.
Completion of the acquisition by the Company of the remaining
interest in the Revenue Silver Mine is subject to various
conditions, including the Company arranging the necessary
financing. The company is actively engaged in discussions with a
number of potential financing sources.
About Fortune Minerals:
Fortune is a diversified North American mining and development
company. Fortune operates the Revenue Silver Mine in Colorado and is developing the vertically
integrated NICO gold-cobalt-bismuth-copper project that is
comprised of a proposed mine and mill in the Northwest 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.
This press release contains forward-looking information
within the meaning of applicable securities legislation. This
forward-looking information includes statements with respect to,
among other things, the anticipated completion of the acquisition
of 100% of the Revenue Silver Mine ("RSM") . 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 fund the next staged payment for the RSM acquisition from
external sources and additional staged payments from the mine's
cash flow and/or external sources). 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, the risk that
the Company may not be able to arrange the necessary financing to
complete the acquisition of 100% of the RSM in accordance with its
contractual obligations; unexpected technical delays and associated
timing delays in the ramp-up of the RSM and associated production
of silver; the risk that operating and/or capital costs may
be materially higher than anticipated; the risk of substantial
decrease in the price of silver or other precious metals; 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; 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