Fortune Minerals Ltd. (TSX:FT,OTCQX:FTMDF) has entered into an amending agreement with owners of the Revenue silver mine, which is located in Southwest Colorado. The agreement will extend the scheduled closing date of the purchase and sale of the mine to September 2, 2014.
As quoted in the press release:
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.