Navigate this market better. Subscribe for FREE stock alerts and information.

Monday, September 8, 2014

Canada's Taseko to purchase Curis Resources for Arizona copper project, (AMEX: TGB)

Taseko Mines Ltd said on Monday it will purchase mineral exploration and development company Curis Resources in an all-share deal, giving the Canadian miner access to the advanced-stage Florence copper project in central Arizona. Taseko, whose New Prosperity copper and gold project in British Columbia was turned down earlier this year by the Canadian government, said the Florence project will help "strengthen" its near-term development pipeline."Florence adds diversity to our pipeline of development projects," said Taseko chief executive Russell Hallbauer in a statement, adding that the Vancouver-based company should be able to manage funding for the $210 million project through to production.Under the deal, Curis shareholders will receive 0.438 of a Taseko common share for each Curis share held, worth $1.055 per share based on Taseko's 20-day volume weighted average price for the period ending Sept 5. That would value the smaller company at roughly C$80 million ($72.9 million).Taseko has also agreed to provide Curis with $2 million in short-term financing to ensure the smaller company has sufficient liquidity to operate until the deal closes.

Taseko Mines Limited is principally engaged in the production and sale of metals, as well as related activities, including exploration and mine development, within the province of British Columbia. Shares of TGB fell by 1.41% or $-0.03/share to $2.10. In the past year, the shares have traded as low as $1.78 and as high as $2.66. On average, 287208 shares of TGB exchange hands on a given day and today's volume is recorded at 195524.