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Fortune Minerals Ltd T.FT

Alternate Symbol(s):  FTMDF

Fortune Minerals Limited is a mining company. It is engaged in the exploration and development of mineral properties in Canada. It is focused on developing the NICO Cobalt-Gold-Bismuth-Copper Project in the Northwest Territories and Alberta that produces a bulk concentrate for shipment to a refinery that it plans to construct in southern Canada. It also owns the satellite Sue-Dianne copper-silver-gold deposit located 25 kilometers (km) north of the NICO Deposit and is a potential future source of incremental mill feed to extend the life of the NICO mill and concentrator. It also maintains the right to repurchase the Arctos anthracite coal deposits in northwest British Columbia. It also has a 100% interest in these 116 hectares of property south of Great Slave Lake with copper, silver, gold, lead and zinc showings. It has a 1% net smelter royalty covering 78 hectares of land positioned in a former silver mining district, located south of the Eldorado mining district at Great Bear Lake.


TSX:FT - Post by User

Comment by MoneyMan123456on Aug 12, 2022 10:59am
134 Views
Post# 34891476

RE:RE:RE:RE:RE:RE:Update ?

RE:RE:RE:RE:RE:RE:Update ?As the loan appears to be unsecured, the process of the lender recouping their loan can follow a couple of different approaches.

1. An agreement is struck to extend the term of the loan.  Possibly increase the interest rate.  Possibly convert some portion of the loan into stock options or some type of preferred shares.  Lots of different possibilities as long as they view FT's Nico asset as having some degree of value that can be monetized in the future.

As long as FT has been making their interest payments, probably the most likely outcome since the lender keeps getting paid, aviods a lengthy court process and creates some certainty for the lender.

2. Go to court and gain access to their assets and/or force them to liquidate to pay their loans.  Definetely a possibility, but a very lengthy process.  From the lender's perspective probably better to just wait and see what happens (as long as FT is paying the interest regularly).

I think it all depends on whether FT can continue to make payments and how the lender views their future potential as to whether they will immediately force repayment or be willing to negotiate.
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