Discovery Ventures to repay in gold, copper.
By The American Bazaar Staff
NEW YORK: Discovery Ventures Inc., a Canada-based company with an Indian-origin President and CEO, has signed a non-binding term sheet with an unnamed New York financing firm for a $12.1 million gold pre-payment agreement.
The financing firm, identified only as “the Facility” in a Discovery Ventures press release put out on Wednesday, will bear an interest rate of 9% for the loan, and will be repaid by “the delivery of 14,400 ounces of gold and 900 tons of copper over a maximum 36 month period starting no later than the 19th month following the closing date,” Discovery Ventures said.
Specifically, the loan will be paid back in two distinct tranche payments; the first will be paid at the closing, and will be worth $4.1 million, while the second tranche will be paid no later than 12 months afterwards, and will constitute the remaining $8 million of the $12.1 million loan.
The money coming from the Facility will be put towards Discovery Ventures’ ongoing acquisition of FortyTwo Metals Inc. When completed, the deal will see the development of a new WillaMAX project in British Columbia that is geared towards sustainable production of metals and other related goods.
Additionally, Discovery Ventures will inherit “MAX Mine, existing permits, mill/concentrator and tax loss pools,” the company said. According to Discovery Ventures’ website, the Willa mine, where the new site will be built, “is the site of a gold, copper and silver deposit located in one of the most highly mineralized regions for base and previous metals in southeastern British Columbia.”
“Discovery management is excited to attract a gold and copper loan type financing to advance the WillaMAX Project through to near term production,” said Akash Patel, Discovery Ventures’ President and CEO. “We believe that the agreement’s repayment by way of metal concentrates signals a very positive outlook of our project’s production potential.”
Headquartered in Vancouver, Discovery Ventures is a growing metal ore company that has interests throughout the British Columbia region of Canada. Patel has been in his current position since June of 2012. He holds a Bachelor of Accounting degree from the British Columbia Institute of Technology, where he majored in accounting and minored in finance.