The mine has made four shipments of
concentrate to the smelter & received its first revenue
Issued Capital: 194,578,180
LONDON,
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.
The 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.
Robin 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."
Fortune, 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.
With 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.
About the Revenue Silver Mine:
The RSM is a fully constructed and permitted,
high-grade, underground silver mine with a 400 ton per day mill and
concentrator located in an underground excavation. The mine is
situated on 147 patented and unpatented mining claims, totaling
approximately 1,079.9 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. 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 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 and forward-looking statements 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 RSM using
the proceeds from the anticipated production pre-pay facility from
Lascaux described herein, the proposed increase in the production
rate at 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 complete the Lascaux
financing, to repay Lascaux from production at the RSM, to increase
production at and 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, the risk that the Company may not be able to complete
the Lascaux production pre-pay facility or the acquisition of the
RSM; 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
