OURAY COUNTY: Canadian company to acquire Revenue-Virginius mine
By Sheridan Block
A Canadian resources corporation struck a deal in Ouray last week, announcing its acquisition of assets at the Revenue-Virginius mine.
Fortune Minerals Limited, a group based in London, Ontario, announced on Friday, May 9, that the company is in the process of purchasing the historic silver mine from former operator Star Mine Operations. With financial support from strategic partner Procon Resources Inc., Fortune Minerals will assume complete ownership of the mine in the $65 million transaction.
According to a press release, the company has incorporated a Colorado subsidiary, Fortune Revenue Silver Mines Inc., to acquire the Revenue from Silver Star Resources LLC, Star Mine Operations LLC and Revenue-Virginius Mines Corporation — collectively known as “the vendors.”
As of Friday, Fortune Revenue had purchased a 12 percent participating interest in the mine, paying the vendors $2 million along with 32 million shares of Fortune Revenue's capital stock. To receive 100 percent interest in the mine, Fortune will have to pay the vendors an additional $14 million by July 31 and issue a promissory note to pay up to $36.8 million in deferred quarterly installments over the next three to six years.
Fortune Revenue will also assume obligations to make two deferred payments totaling $4.5 million and pay a two percent smelter return royalty, capped at $9 million, to the mine’s former owners.
While the staged transaction is only partially complete, Fortune’s investor relations manager Troy Nazarewicz said