Copper Mountain Mining (TSX: CMMC) announced that it has tabled a $70-million, all-share bid for Australia-based Altona Mining (ASX:AOH) and its district-scale Cloncurry copper-gold property, located 95 km northeast of Mount Isa in Queensland.
According to Altona’s updated feasibility study, Cloncurry is 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.
In an official statement, Copper Mountain said that if the acquisition comes to fruition, it would be targeting production by 2020 and would likely fund the $217 million capital expenditure requirements of the mine via debt facilities and treasury.
The acquisition will be effected pursuant to a Merger Implementation Deed under which Altona has agreed to propose the scheme that would allow it to become a wholly owned subsidiary of CMMC.
Copper Mountain also informed that, as part of the new deal, it is offering Altona shareholders 0.0974 of a Copper Mountain share, which will be dual listed on the Australian and Toronto Stock Exchanges, for each share held.
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