NEW YORK Discovery Ventures Inc. has entered into an agreement to acquire Roca Mines Inc. subsidiary FortyTwo Metals Inc. and its idled Max molybdenum mine and processing facility in British Columbia for Canadian $5.68 million ($5.41 million).
Discovery will use the Max operation to process materials from its Willa gold, copper and silver project.
"Due to managements decision to focus on development of the Willa project and current economic factors, Discovery takes the position that the Max project is incidental to the proposed acquisition of FortyTwo and, once acquired, will not constitute a material property of Discovery," the Vancouver, British Columbia-based company said.
The Max molybdenum mine operated from 2007 to November 2011, when depressed metal prices led to its closure. The facility includes an underground molybdenum mine, crushing, milling and concentrating facilities, tailings storage, mineral claims, mining leases, licenses and other holdings.
Discovery intends to finance the acquisition of Vancouver, British Columbia-based FortyTwo through one or more private placements on terms to be determined. The acquisition has received conditional approval from the TSX Venture Exchange.