Discovery Ventures & Roca Mines Announce Further Extension of Payment Terms With Respect to Acquisition of Max Mine & Mill fr...
08 March 2014 - 1:00AM
Marketwired
Discovery Ventures and Roca Mines Announce Further Extension of
Payment Terms With Respect to Acquisition of Max Mine and Mill from
Roca Mines
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Mar 7, 2014) -
Further to the news releases dated November 15, 2013 and January 8,
2014, Discovery Ventures Inc. ("Discovery") (TSX-VENTURE:DVN) and
Roca Mines Inc. ("Roca") are pleased to announce they have further
amended the letter agreement dated November 4, 2013 (the
"Agreement"), among Discovery, Roca and FortyTwo Metals Inc., a
wholly-owned subsidiary of Roca ("FortyTwo"). Pursuant to the
Agreement, Roca granted an exclusive option to Discovery,
exercisable in three stages, to acquire all of the issued and
outstanding common shares of FortyTwo. FortyTwo holds, among other
assets, the Max Mine which includes an underground molybdenum mine,
crushing, milling and concentrating facilities, tailings storage
facilities, mineral claims, mining leases, licenses and other
holdings located near Trout Lake in the Revelstoke mining division
of the Province of British Columbia. The Max Mine is located
approximately 135 kilometres from Discovery's Willa Project and is
a formerly producing molybdenum mine that operated from 2007 until
November 2011 when depressed metal prices led to its closure.
The first stage of the option was exercised by Discovery on
November 15, 2013. The amendments to the Agreement have
restructured the second stage of the option into the following
three payments:
- payment of $250,000 on or prior to January 8, 2014 (paid);
- payment of $50,000 on or prior to March 6, 2014 (paid);
and
- payment of $650,000 on or prior to March 24, 2014.
To exercise the third and final stage of the option, Discovery
is required to pay $3.3 million and issue 2.5 million shares of
Discovery on or prior to April 5, 2014. Notwithstanding this time
requirement, and pursuant to the amendment, the parties to the
Agreement have agreed to undertake commercially reasonable efforts
to close the Agreement and exercise the option in full on or prior
to March 24, 2014.
The Company's President, Akash Patel, commented: "We believe
this extension will give Discovery the extra time needed to close
our anticipated equity and debt financing and acquire the remaining
shares of FortyTwo Metals Inc. that we do not already own."
Akash Patel, President and Director
Discovery Ventures Inc.
This press release contains forward-looking information that
involves various risks and uncertainties regarding future events.
Such forward-looking information can include without limitation
statements based on current expectations involving a number of
risks and uncertainties and are not guarantees of future
performance of the Discovery, such as the statement that Discovery
may exercise the option, or any stage of the option and acquire any
portion or all of the shares of FortyTwo. There are numerous risks
and uncertainties that could cause actual results and Discovery's
plans and objectives to differ materially from those expressed in
the forward-looking information, including: (i) adverse market
conditions; (ii) risks inherent in the mineral exploration industry
in general; (iii) the ability of Discovery to exercise one or more
stages of the option; (iv) the ability of Discovery to raise
sufficient funds to exercise one or more stages of the option; (v)
the risk in Roca receiving an offer to sell the shares of FortyTwo
that it is willing to accept in substitution of Discovery's option
under the Agreement; (vi) the risk in one or more creditors of Roca
or FortyTwo placing either entity into bankruptcy; (vii) inability
to acquire permits or First Nation support for mining operations
with respect to the Willa Project or the Max Mine; and (viii)
latent environmental liabilities with respect to the Willa Project
or the Max Project. Actual results and future events could differ
materially from those anticipated in such information. These and
all subsequent written and oral forward-looking information are
based on estimates and opinions of management on the dates they are
made and are expressly qualified in their entirety by this notice.
Except as required by law, Discovery does not intend to update
these forward-looking statements.
Neither the TSX Venture Exchange Inc. nor its Regulation
Service Provider (as that term is defined in the policies of the
TSX Venture Exchange Inc.) accepts responsibility for the adequacy
or accuracy of this press release.
Discovery Ventures Inc.(604)-818-1706Investor RelationsRon
Birch(250)-545-0383Toll free: 1-800-910-7711
Discovery Ventures Inc. (TSXV:DVN)
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