COAL: Copper Mountain rejects Taseko bid
COMMENT: Copper Mountain Mining is a sister company of Compliance Energy, spun out of Compliance a few years ago, with what at the time seemed like a rather fanciful, stock-promoter's scheme to create market activity.
But, it looks like there may actually be minable copper at the site, and now Copper Mountain Mining is even the subject of takeover bids.
Compliance Energy, you will remember, is the proponent of the Raven Underground Coal Mining Project on Vancouver Island, and Jim O'Rourke heads up both companies.
You can't see it in the photo, but just down to the right is Highway 3, at the Princeton end of the Hope-Princeton and the old building from the previous copper operation at this site. It was that building that Compliance optioned to be the powerhouse for its coal-fired generation plant. Then the government killed the coal plant with its order that all carbon must be sequestered, and Compliance turned its option into an acquisition of the entire mine property. And here we are today.
 Copper Mountain Mining Corporation's superpit (outlined in blue), located 15 kilometres southwest of Princeton. (Photograph by: Handout photo illustration, Vancouver Sun files) |
By Marke Andrews
Vancouver Sun
September 17, 2009
VANCOUVER — Copper Mountain Mining Corp. has rejected an unsolicited, conditional share-exchange merger proposal by Taseko Mines Ltd. which would give Taseko control of Copper Mountain near Princeton.
In a statement, CMMC said the offer, made Tuesday, not only undervalues the company, it undermines its current financing. CMMC is currently raising $50 million in an equity offering for the Copper Mountain Project, a 7,300-hectare mine site south of Princeton, which CMMC claims to have five billion pounds of copper.
Jim O’Rourke, CEO of CMMC, said in a statement that Taseko “is currently taking action in an attempt to stop our equity offering. Their approach of interfering with the company’s financing could deprive our shareholders of substantial benefit that could result from the development program which is underway.
“The $50-million equity offering satisfies the company’s equity requirements for the Copper Mountain Project. We are taking all steps necessary to protect the company and our shareholders.”
The bid causes a flurry of trading Thursday on the Toronto Stock Exchange. Copper Mountain shares reached a one-year high of $1.97, while Taseko Mines shares jumped three per cent to $3.00.
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Posted by Arthur Caldicott on 17 Sep 2009