Colorado Springs News, Sports & Business

Canadian firm buying mine near Ouray where 2 died

Associated Press Published: May 13, 2014 0

MONTROSE — Canada-based Fortune Minerals Limited is buying the southwestern Colorado mine where two workers died of carbon monoxide poisoning last year.

The Montrose Daily Press reported Tuesday that Fortune Minerals is buying only the assets of the Revenue-Virginius Mine near Ouray and Star Mine Operations will keep the liabilities. The gold, silver and lead mine will continue to operate, allowing more than 90 people to keep their jobs and provide revenue to Fortune Minerals as it develops operations in Saskatchewan and British Columbia

"For us, it's a key part of our strategy. What it does for us is make an immediate transition to a producing mining company and that's where we want to be corporately," Fortune Minerals investor relations manager Troy Nazarewicz said.

Rick Williams of Durango and Nick Cappanno of Montrose died of carbon-monoxide poisoning at the mine on Nov. 17, 2013 when the mine was operated by Star Mine. They apparently entered an area of the mine where an explosive had been detonated.

A final report on the deaths isn't expected for several months.

Fortune Minerals said it has already paid $2 million for a 12 percent participating interest in the mine. It will completely control the mine if it pays an additional $14 million by July 31 and promises to pay up to $36.8 million in quarterly payments for up to nearly six years depending on revenue.

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Information from: The Montrose Daily Press, http://www.montrosepress.com

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