Starcore International Closes Acquisition of Creston Moly

Starcore International Mines Ltd. (TSX:SAM) announced that it has acquired all the shares of Creston Moly Corp. from Deloitte Restructuring Inc., which is a trustee in the bankruptcy of Mercator Minerals Ltd. (TSX:ML). The company paid C$2 million for the shares.

As quoted in the press release:

The closing of the Transaction followed the Supreme Court of Canada discharging Creston Moly from bankruptcy, clearing the way for Starcore to continue with the development and further exploration of Creston’s properties. Creston Moly was formerly a wholly-owned subsidiary of Mercator Minerals, who acquired Creston Moly in 2011 in a cash-and-shares deal valuing Creston Moly at approximately Cdn$194 million. Creston Moly is a British Columbia company that owns, through its subsidiaries, a 100% interest in three molybdenum-copper projects:

• The El Creston Project in Sonora, Mexico;
• The Ajax Project in British Columbia; and
• The Molybrook Project in Newfoundland.

The most significant asset in this acquisition was the El Creston project in Sonora, Mexico which has been advanced to a completed Preliminary Economic Assessment (‘PEA’). The result of this study, which was based on higher metals prices, indicated that the El Creston molybdenum-copper deposit had a US $561.9 million net present value after tax (using an 8% discount rate), the internal rate of return (after tax) was calculated to be 22.3% and a capital cost payback was calculated to be four years.

Click here to read the full Starcore International Mines Ltd. (TSX:SAM) press release.