Copper Mountain Mining bid on Altona Mining
It has been announced that Copper Mountain Mining Corporation (CCMC) has tabled a $70M all-share bid for Australian company Altona Mining Limited. This Australian mine houses the Cloncurry copper-gold property, a 19,200-tonnes-per-day open pit mine comprised of four copper-gold deposits that would produce 86 million lbs. copper and 17,200 oz. gold annually over a 14-year mine life at cash costs of $1.92 per lb. Copper Mountain Mining and Altona Mining Limited will combine companies under a Scheme of Arrangement under the Australian Corporations Act 2001, following which CMMC will acquire the entire issued capital of Altona.
Both sides seem very optimistic about this merger. Dr Alistair Cowden, Managing Director of Altona, says: “We are delighted to join CMMC to form a new high growth copper producer. We are excited to bring CMMC’s depth of experience in constructing and operating a large scale open pit copper mine to bear upon the Cloncurry Copper Project. Altona’s shareholders will receive a premium and will also gain immediate exposure to copper production just as copper prices have recovered and market shortfalls are predicted over the near term. This is a great opportunity for our shareholders to participate in the creation of a leading midsized copper producer.”
Of the merger, Jim O’Rourke, President and Chief Executive Officer of Copper Mountain Mining, commented “Cloncurry exemplifies the criteria of low-risk, near-term and high quality for which we have been seeking. We intend to progress Cloncurry into production with the aim of doubling CMMC’s copper production profile to the range of 160 million pounds (73,000 tonnes) of copper per annum with significant precious metals credits. This additional copper production is timely to capitalize on the projected strong copper cycle.”
The hope is to begin production by 2020. The acquisition is expected to create a multi-jurisdictional, mid-tier copper producer whose annual potential copper production would be of approximately 160 million pounds by 2020. Combined proven and probable reserves would be of 2.1 billion pounds of copper and combined measured and indicated resources would be over 4.1 billion pounds of copper and an additional 3.6 billion pounds of copper in inferred resources.
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