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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 30, 2022 9:40am
162 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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