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Fortune Minerals Limited. T.FT

Alternate Symbol(s):  FTMDF

Fortune Minerals Ltd is a Canadian mining and mine development company focused on developing the NICO Cobalt-Gold-Bismuth Copper Project in the Northwest Territories. The company plans to build a hydrometallurgical plant in southern Canada to process NICO metal concentrates. Fortune also owns the satellite Sue-Dianne Copper-Silver-Gold Deposit located 25 km north of the NICO Project, which is a potential future source of incremental mill feed to extend the life.


TSX:FT - Post by User

Comment by MoneyMan123456on Aug 30, 2022 9:40am
148 Views
Post# 34929203

RE:One way or another

RE:One way or anotherIt's very clever how the lenders agreed to extend the debentures for only 4 months, while ensuring that their loans are now considered to be secured by all Fortune assets.

They had the choice to call in the loan, have FT declare bankruptcy and then stand in line for whatever the company ends up selling for.   But instead it looks like they chose something much more clever.

Now, for basically the exchange of 4 months of breathing room, they have placed themselves directly at the front of the line for the Nico assets.  They don't really care about the 4 months interest, because Fortune's financial situation is unlikely to change materially in the next 4 months.  

If Fortune does end up with some cash, they get paid off, no brainer.  Easy money.

If Fortune can not pay up, they call in the loan, have a streamlined process to access Fortune's assets and make their easy money.  If they gain access to Nico during a bidding process for pennies on the dollar, they may be able to go out, market the asset properly and make 10 times their initial investment (or more).

Chess vs Checkers.


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