Canada-based Fortune Minerals will acquire Revenue Silver Mine in south-western Colorado, US from Silver Star Resources, Star Mine Operations and Revenue-Virginius Mines, and has completed the first phase of the planned purchase.

The first phase include purchase of 12% stake in the mine for $2m, and Fortune will have an option to gain full control of the property by paying $14m by 31 July 2014 and issue a note to pay up to $36.8m in deferred quarterly installments over 3.5 to 5.75 years determined by revenue targets commencing in August 2015.

The company has incorporated a wholly-owned Colorado subsidiary, Fortune Revenue Silver Mines, for the transaction, which is backed by Fortune Minerals’ strategic partner Procon Resources.

Procon is considering options to buy up to 7,717,871 shares of Fortune for C$3.08m.

Fortune Minerals president and CEO Robin Goad said that upon completion of this transaction, Fortune will own a 100% interest in a producing silver operation with by-product credits for gold, lead, zinc and potentially copper.

"The development of our NICO and Arctos projects provides our shareholders with further participation in gold, cobalt chemicals needed to manufacture rechargeable batteries, 12% of global bismuth reserves, and a world class anthracite metallurgical coal deposit," Goad added.

"We look forward to marketing this opportunity to the investment community, while also continuing our negotiations to complete the project financing for our NICO vertically integrated mine and refinery project with our strategic partner and its banks."