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Fortune Minerals closes second tranche of Procon financing

Fortune Minerals closes second tranche of Procon financing

Photo by Fortune Minerals

8th July 2014

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – Canadian project developer Fortune Minerals on Tuesday said it had closed the second tranche of a private placement with Chinese-backed Procon Resources.

Fortune reported that Procon had bought another 2.08-million Fortune shares at C$0.40 apiece for gross proceeds of C$834 450, earmarked for general capital purposes.

Procon bought the shares under its pre-emptive right to maintain a 19.43% interest in Fortune. Procon had already completed a private placement purchase of 5.63-million Fortune shares at a price of C$0.40 a share for net proceeds of C$2.25-million in May, as part of a larger financing by Fortune to buy its initial interest in the Revenue silver mine, in south-west Colorado.

Fortune is now the operator of the Revenue mine and can complete the transaction to acquire a 100% interest in the mine by paying the vendors $14-million by the end of the month. Fortune would also have an obligation to pay the vendors $34.5-million to $36.8-million in deferred quarterly instalments over 3.5 years to 5.75 years, as determined by revenue targets starting in August, 2015.

Meanwhile, Fortune is also advancing development of its Nico gold/cobalt/bismuth/copper project, which consists of a proposed mine and mill in Canada's Northwest Territories (NT) and a hydrometallurgical refinery in Saskatchewan, where concentrates from the mine will be processed to higher-value metal and chemical products.

Fortune last September voluntarily ended its summer field programme in the Klappan region of British Columbia, where it hopes to develop its Arctos anthracite project, pending the provincial and Tahltan First Nation governments ironing out issues.

Edited by Creamer Media Reporter

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