TORONTO (miningweekly.com) – Canadian miner Fortune Minerals has secured a further $4-million from financing partner Lascaux Resource Capital Fund to provide working capital for the Revenue silver mine (RSM), in south-west Colorado.
Lascaux in October last year provided Fortune with $35-million to finance the acquisition of RSM under a metal prepay facility.
The partner in December and February also provided working capital totalling $12-million, which was also structured as a metal prepay facility.
Fortune on Friday explained that the metal delivery obligations under the original prepay facility and additional working capital facilities had been restructured, but the applicable interest rates remained the same under an amended agreement with Lascaux.
RSM is an underground high-grade silver/gold/lead/zinc mine with a mill and concentrator and surface facilities near the town of Ouray, in the historic Sneffels mining district.
The mine operated between 1876 and 1912 by Caroline Mining and had historical output estimated at 15-million ounces before it closed as a result of a fire. The mine was reactivated and a new 400 t/d mill and concentrator constructed before Fortune bought the project in 2014. The company was focused on completing the commissioning and ramp-up to a planned 400 t/d production rate.