Fortune Minerals Receives Notice of Default Under Prepay Facility and Reaches Agreement in Principle to Settle Debt Obligations

3 July 2015

07/03/2015
Issued Capital:  222,077,580
LONDON, ON, July 3, 2015 /CNW/ - Fortune Minerals Limited (TSX: FT) (OTCQX: FTMDF) ("Fortune" or the "Company") (www.fortuneminerals.com) reports that its wholly-owned subsidiary, Fortune Revenue Silver Mines, Inc. ("FRSMI"), the owner of the Revenue Silver Mine (the "RSM") in southwest Colorado, has received notice from LRC-FRSM LLC ("Lascaux") that events of default have occurred under the Amended and Restated Senior Secured Metal Prepay Agreement (the "Prepay Agreement"), dated as of March 25, 2015 among FRSMI, the Company and Lascaux. The notice from Lascaux has declared all amounts and deliveries owing under the Prepay Agreement to be immediately due and payable. FRSMI's obligations under the Prepay Agreement are secured by all of its assets and guaranteed by the Company and certain of its other subsidiaries, including Fortune Minerals NWT Inc. ("Fortune NWT") and Fortune Minerals Saskatchewan Inc. ("Fortune Saskatchewan"), which have also granted Lascaux security over their respective assets. Each of the Company, Fortune NWT and Fortune Saskatchewan have also received notice from Lascaux pursuant to the Bankruptcy and Insolvency Act (Canada) of Lascaux's intention to enforce its security. Lascaux will have the right to enforce such security at any time after July 10, 2015.