Creston Moly ^[1] (CVE:CMS) annouced today that the company has entered into a Letter Agreement to merge with Tenajon Resources (CVE:TJS). Creston Moly will acquire the shares of Tenajon by issuing 0.84 Creston shares for each Tenajon share.

Tenajon brings a three molybdenum projects and perhaps more important, $3m in cash as of Dec. 2008.

Colin Benner, Chairman of Creston Moly is quoted as saying:

The combination of Creston and Tenajon creates a company that has excellent prospects for internal growth, and the scale of resource base to take advantage of what we believe will be an eventual turn-around in the moly space

Click here to see the full press release ^[2].