MinQuest Looking to Buy Yukon Zinc's Wolverine Mine

MinQuest Ltd. (ASX:MNQ) announced that it’s submitted a conditional, non-binding bid to buy the Yukon-based Wolverine zinc mine. The mine is currently owned by Yukon Zinc Corp., but that company went into receivership this past March; it has been ordered to find investors or sell its assets.
As quoted in the press release:

• Due to ongoing discussions between Yukon Zinc’s Monitor and MinQuest, the terms of the offer will remain confidential until the offer becomes unconditional;
• MinQuest’s bid for Wolverine zinc mine is conditional upon MinQuest securing the funds for the project acquisition and the successful negotiation of an Asset Purchase Agreement with Yukon Zinc and Yukon Zinc’s Monitor;
• The Wolverine zinc mine was placed on Care and Maintenance in January, 2015 and in March, 2015, due to liquidity issues, Yukon Zinc filed for, and received, Court protection under the Companies’ Creditors Arrangement Act (“CCAA”);
• Yukon Zinc spent in excess of CAD$500M developing and running the Wolverine Mine;
• The Wolverine zinc mine is situated 28Km north-east of MinQuest’s Fyre Lake Copper Project;
• MinQuest’s offer is to acquire the Wolverine zinc mine including the 750,0000tpa processing facility, tailings management facility, mine office, workshops, power station, underground mine, surrounding exploration tenements and operating licences;
• MinQuest is examining the possibility of using the existing facilities at the Wolverine zinc mine to fast-track the Kona Mineral Resource on the Fyre Lake Copper Project into production, with potential pre-production cost savings of CAD$150-200M
• Kona Mineral Resource at Fyre Lake is currently defined as 12.6Mt Mt @ 1.6% Cu, 0.6% Co and 0.6g/t Au

Click here to read the full MinQuest Ltd. (ASX:MNQ) press release.