Tutt had gone to Colorado Springs, Colorado in 1884, where he found initial success in real estate in the developing city. Tutt and Penrose had been childhood friends; both their fathers were doctors at the children's hospital. Tutt loaned Penrose the money to purchase a half stake in his Cripple Creek real estate business, which included the Cash on Delivery (C.O.D.) Mine. This was the beginning of a long-lasting partnership between the two men. The C.O.D. Mine was one of the most successful in Cripple Creek but, as Penrose and Tutt continued their partnership and operations, they began to realize the value of opening a new business in ore processing.