22 Nov Teck Resources to purchase AQM copper for $25 million
Teck Resources (TSX:TCK.B) has signed a US$25 million agreement to acquire AQM Copper (TSX:-V:AQM) and the junior’s Peruvian interest.
Canada’s largest mining firm will absorb AQM’s 30% indirect interest in the Zafranal copper-gold project, adding to the 50% indirect interest it already owns.
The AQM shareholders will receive C$0.23 cash per common share at a 53% premium. The junior miner does have an option to accept a higher offer from a competing buyer between now and the deal closing, expected for January 2017, but Teck has the right to match any bid.
“With the announcement today of Teck’s all-cash offer for AQM, I believe there is an opportunity for shareholders of AQM to benefit greatly from the immediate cash premium, while avoiding potential near-term dilution in the current challenging commodity price environment,” said AQM president and CEO Bruce Turner.
“Teck has been a great joint venture partner in advancing Zafranal through to a strong pre-feasibility, and Zafranal will be better positioned for future development in the hands of a major with significant cash resources such as Teck.”