US-based minerals exploration company Star Mountain Resources is pursuing the acquisition of an underground base metal mine in North America.
The company said it is pursuing merger and acquisition opportunities for mines, advanced projects in addition to immature projects, to take advantage of the downturn in the market.
Star Mountain Resources CEO Joseph Marchal said: "As part of our strategy to strategically position ourselves for the inevitable upturn in the commodity markets, we are presently pursuing the previously announced acquisition of an underground base metal mine located in North America subject to completion of financing.
"The mine is permitted and in compliance with current Federal and State mining regulations and is on care and maintenance status."
Following the acquisition, the company proposes to upgrade and modernise certain infrastructure systems and develop additional access to existing mining areas.
The company also plans to restart production at the mine within six to nine months.
"Based on data provided to us during our due diligence on this proposed acquisition, we believe that the base metal mine opportunity presents to us the possibility of outstanding cash flows in the near term, showing a viable net present value and an attractive internal rate of return." Marchal added.
Star Mountain hopes to meet the listing requirements by concluding the acquisition and raising the required capital to complete it.
The listing will help the company to raise additional capital that is needed to identify and complete the acquisition of other properties as well as projects.
Image: Star Mountain is pursuing merger and acquisition opportunities for mines, advanced projects. Photo: courtesy of duron123/FreeDigitalPhotos.net