OURAY COUNTY – Fortune Minerals Limited of London, Ontario announced on July 31 that it has entered into an amending agreement with the owners of the Revenue Silver Mine in Ouray County to extend the scheduled closing date of the purchase and sale of the mine from July 31 to Sept. 2, 2014.
According to a release, the company, through its wholly-owned subsidiary, Fortune Revenue Silver Mines Inc. (“Fortune Revenue”) has already completed the purchase of a 12 percent participating interest in the mine and can acquire a 100 percent 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 percent 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.
The release stated that 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,” and that the company is “actively engaged in discussions with a number of potential financing sources.”