JOHANNESBURG (miningweekly.com) – Canadian silver firm Fortune Minerals has issued 17.74-million common shares of the company to the former owners of Colorado-based Revenue silver mine, which it bought earlier this year.
The shares were issued at a deemed price of C$0.25 a piece and completes the final instalment of the consideration for the acquisition of Revenue, which was completed on October 1.
James Williams, of Golden, Colorado, was issued with about 9.17-million shares, representing 4.35% of the outstanding common shares, increasing its interest in Fortune to 13.1%.
The Revenue mine currently has compliant resources of 215 300 t in the measured category, 586 300 t in the indicated category and 684 200 t in the inferred category, containing 16.3-million ounces of silver in the measured and indicated category and 10.1-million ounces of silver in the inferred category.
A recent preliminary economic assessment based the mine plan on 888 283 t (diluted) with an average grade of 14.6 oz/t of silver, 0.02 oz/t of gold, 2.26% lead and 0.9% zinc.
Over the mine’s eight-year life, it is expected to produce 1.86-million ounces of silver at a cash cost of $6.62/oz of silver net of by-product credits, excluding freight, treatment and refining charges (TC/RC), and $10.28/oz C1 cash cost, including TC/RC charges.