Moon River Capital Ltd, headquartered in Toronto, is set to acquire a 25 per cent interest in the Endako Molybdenum Mine, located near Fraser Lake, 161 kilometres northwest of Prince George, British Columbia.
The mine, currently operated as a joint venture with Centerra Gold鈥檚 subsidiary Thompson Creek holding a 75 per cent interest, and Sojitz Corporation, a Japanese entity, holding the remaining 25 per cent, will see Moon River acquiring Sojitz鈥檚 shares.
The acquisition, announced in an April 29 statement, follows Moon River鈥檚 February declaration of intent to acquire a 25 per cent stake in the Endako molybdenum mine complex in British Columbia, along with funding totaling approximately $43 million provided by Sojitz to its subsidiary, Sojitz Moly Resources Inc.
Endako Mine, operational since 1965, was suspended in December 2014 due to market conditions and plummeting molybdenum prices and has been under care and maintenance since July 2015. The suspension resulted in nearly 300 employees losing their jobs.
READ MORE: What happened to Endako Mine employees?
Moon River鈥檚 President and CEO, Paul Parisotto, hailed Endako as a crucial asset, emphasising its status as Canada鈥檚 largest molybdenum producer and one of North America鈥檚 largest molybdenum mines.
鈥淲e are delighted to have the opportunity to complete this transaction, which is expected to occur within approximately 60 days,鈥� Parisotto said in the statement.
Parisotto highlighted molybdenum鈥檚 significance in modern industrial technology, particularly in manufacturing stainless steels capable of withstanding high stress, extreme temperatures, and corrosive environments.
Molybdenum has been designated a critical mineral by the Canadian government as it is essential to Canada鈥檚 economic security and required for Canada鈥檚 transition to a low-carbon economy, Parisotto said.
Additionally, the acquisition will strategically boost Moon River鈥檚 presence in the molybdenum sector geographically. The Endako Mine Complex is located 160 km southeast of Moon River鈥檚 Davidson Property near Smithers, which hosts a significant molybdenum-tungsten deposit.
鈥淭his close proximity to the Davidson Project makes this an even more compelling acquisition,鈥� Parisotto said.
Editor鈥檚 note: This article has been corrected to reflect Moon River Capital will be acquiring Sojitz Corporation鈥檚 25 per cent stake in the Endako mine along with a funding of approximately $43 million from them. The earlier article indicated Moon River will be buying the shares from Sojitz for $43 million.
