Fortune Minerals Limited acquires Revenue Silver Mine

Fortune Minerals Limited, through a subsidiary, completed the purchase of a 100 per cent interest in the Revenue Silver Mine (RSM) located in southwest Colorado, from the current owners, including Silver Star Resources LLC, Star Mine Operations LLC, Revenue-Virginius Mines Corporation and certain individuals.

The aggregate consideration paid and payable by Fortune is approximately US$40 million which includes a combination of cash and common shares of Fortune. A portion of the purchase price was financed through a US$35 million production prepay facility from Lascaux Resource Capital Fund 1 LP. The metal prepay facility is to be repaid over a five-year term from a fixed schedule of metal shipments from the RSM, together with cash interest payments.

Norton Rose Fulbright represented Fortune in Canada and the United States on the transactions with a team led by David Knight and including Matt DeArman, Ryan Searfoorce and Randy Aman (finance); Michael Wahl and John Carron (corporate and securities); Lucy Deakins (regulatory) and William Caudill, Zhusong Yang and Ed Heakes (tax).

Lascaux was represented by Bingham Mc-Cutchen LLP (now Morgan, Lewis & Bockius LLP) with a team that included Alexis Sinclair, Thomas Mellor, Bruce Wolfson and Mary Mooney.

The vendors of the RSM were represented by a team from Holland & Hart LLP that included Susan Oakes and Brockett Hudson.


David A. Knight