Taseko Mines buying Curis Resources for Arizona copper project
Taseko Mines (TSX:TKO) (NYSE MTK:TGB) is buying fellow Canadian mineral exploration and development company Curis Resources (TSX:CUV) in an all-share deal that guarantees Taseko access to an advanced-stage copper project in central Arizona.
The Vancouver-based miner, whose New Prosperity copper and gold project in British Columbia was rejected earlier this year by Canada’s government, said in a statement the Florence project will help "strengthen" its near-term development pipeline.
The company owns and operates the Gibraltar copper-molybdenum mine in British Columbia, and is developing three other projects in the Pacific coast province, including the twice-refused and now stalled New Prosperity.
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.
According to a pre-feasibility study released by Curis last year, the Florence copper project is a robust one, even if the copper price falls from its current level ($3.15/lb.).
Top image courtesy of Curis Resources.