News as Fortune Minerals Announces Extension of Revenue Silver Mine Purchase Agreement

 

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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 millionand 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 millionto 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.