The Revenue Silver Mine is continuing its ramp up to 400 tons per day
Issued Capital: 214,822,180
LONDON, ON, March 27, 2015 /CNW/ - Fortune Minerals Limited (TSX: FT) (OTCQX: FTMDF) ("Fortune" or the "Company") (www.fortuneminerals.com) is pleased to announce that it has closed an additional US$ 4 million financing from Lascaux Resource Capital Fund LP ("Lascaux") to provide working capital for the Revenue Silver Mine ("RSM") in southwest Colorado, U.S.A. Lascaux provided US$ 35 million to Fortune in October 2014 to finance the acquisition of the RSM under a metal prepay facility (see Fortune news releases, dated October 1, and 16, 2014). Additional working capital totaling US$ 12 million was provided by Lascaux in December 2014 and February 2015 that was also structured as a metal prepay facility (see Fortune news releases, dated December 22, 2014 and February 12, 2015). The Company's metal delivery obligations under the original prepay facility and additional working capital facilities have been restructured but the applicable interest rates remain the same under an amended agreement with Lascaux.
Fortune owns a 100% interest in the RSM through its wholly-owned subsidiary Fortune Revenue Silver Mines, Inc. ("FRSMI"), and is a guarantor of FRSMI's obligations under both the original metal prepay facility and the additional working capital facilities.
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About the Revenue Silver Mine:
The RSM is an underground high-grade silver-gold-lead-zinc mine with a mill and concentrator and surface facilities located near the town of Ouray in the historic Sneffels Mining District of Colorado. The mine operated between 1876 and 1912 by Caroline Mining Co. and had historical production estimated at 15 million ounces before it closed as a result of a fire. The mine was reactivated and a new 400 ton per day mill and concentrator constructed before Fortune purchased the project in 2014. The Company is completing the commissioning and ramp up to a planned 400 ton per day production rate.
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's 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.
The disclosure of scientific and technical information contained in this press release has been approved by Robin Goad, M.Sc., P.Geo., President and CEO of Fortune Minerals Limited, who is a "Qualified Person" under National Instrument 43-101.
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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 proposed development of the RSM and 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 financial and technical abilities to complete the development of the RSM and 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 achieve commercial production at the RSM or complete the NICO and Arctos projects; the risk that the Company may not be able to arrange the necessary funding to complete the development of its 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
For further information: Fortune Minerals Limited, Troy Nazarewicz, Investor Relations Manager, [email protected], Tel.: (519) 858-8188, www.fortuneminerals.com