Taseko Mines buying Curis Resources for Arizona copper project

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.

Taseko Mines buying Curis Resources for Arizona copper project

The fate of Fish Lake (pictured) is one of the biggest debates surrounding the New Prosperity copper and gold project | Image courtesy of Jonaki Bhattacharyya. 

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.