Over seven million shares of Discovery Ventures (TSX.V: DVN) traded hands Wednesday after announcing it has entered into an agreement to acquire the Max Mine and Mill complex in British Columbia.
Discovery will acquire all outstanding shares of FortyTwo Metals Inc., a wholly owned subsidiary of recently delisted Roca Mines, for cash and stock totaling $5.675 million.
“We are very excited about the proposed acquisition of the Max Mine and mill complex and the strategic synergies that may result by combining Discovery’s existing Willa Project with the Max Mine processing facility,” said Discovery President and CEO Akash Patel.
The Max Mine and Mill complex is located near Trout Lake, British Columbia. Roca suspended underground operations at the mine in September due to lower than expected head grades.
Discovery plans to keep the mine on care and maintenance while utilizing existing mill facilities to process ore from its Willa Project, which is located 135 kilometers away. The Max Mill has a 1,000 tonne per day (tpd) throughput capacity.
The Willa Project is located in the Kootenay District of southeastern British Columbia. Discovery acquired an 80% interest in the project earlier this year.
The project contains National Instrument (NI) 43-101 compliant Measured resources of 495,784 tonnes grading 7.18 g/t gold, 0.94% copper and 12.16 g/t silver. Indicated resources total an additional 262,415 tonnes with average grades of 5.71 g/t gold, 0.67% copper and 13.26 g/t silver.
Discovery plans to complete one or more private placements in order to raise capital to complete the acquisition.
Shares of Discovery are traded on the TSX Venture under the ticker symbol DVN. The company has 53 million shares outstanding on a fully diluted basis and holds a market cap of $8.06 million. Canaccord Genuity holds 13.9% of outstanding shares.
