Fortune Minerals completes restructuring
TORONTO (miningweekly.com) – Project developer Fortune Minerals on Thursday reported that it had completed the second and final stage of the restructuring agreement entered into with former financing partner LRC-FRSM (Lascaux) and its other secured creditors to settle its secured debt obligations and remove the security over the company's Canadian assets.
The TSX-listed company earlier this month announced that its subsidiary Fortune Revenue Silver Mines (FRSMI), which owned the Revenue silver mine (RSM), in south-west Colorado, had received notice from Lascaux that it had defaulted on the amended and restated senior secured metal prepay agreement dated March 25, triggering all amounts and deliveries owing under the contract to become immediately due and payable.
FRSMI's obligations under the prepay agreement were secured by all Fortune's assets. These included its flagship Nico gold/cobalt/bismuth/copper deposit, in Canada's Northwest Territories, and its proposed refinery in Saskatchewan, which were guaranteed by the company and certain of its other subsidiaries, to which Lascaux had also sent default notices.
The settlement was completed on substantially the same terms as published on July 17, except that the $550 000 that was to be paid to Fortune by Ouray Silver Mines, formerly FRSM, had been reduced by $230 000 to compensate for certain liabilities and other costs of Ouray.
Fortune had previously told Mining Weekly Online that while regretting the loss of its only operating asset after failing to repay its creditors, it could potentially emerge from the restructuring positioned to carry on with its Canadian assets without any debt, positioned to develop Nico in step with strong long-term fundamentals for its basket of products.
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