Copper Mountain Mining (CMMC) has signed an agreement to acquire all of the outstanding shares of Australian firm Altona Mining, in a transaction valued at A$93m ($70.34m).
The merger is being planned through a scheme of arrangement under which Altona is expected to become a wholly owned subsidiary of CMMC.
Under the terms of the deal, each share of Altona will be exchanged for 0.0974 of either a CHESS depositary interest or a common share of CMMC.
Through the acquisition, CMMC will have ownership of the undeveloped open-pit Cloncurry Copper project in Queensland.
CMMC president and CEO Jim O’Rourke said: “Cloncurry exemplifies the criteria of low-risk, near-term and high quality for which we have been seeking.
“We intend to progress Cloncurry into production with the aim of doubling CMMC’s copper production profile to the range of 160 million pounds of copper per annum with significant precious metals credits.
“This additional copper production is timely to capitalise on the projected strong copper cycle.”
The project has a measured and indicated mineral resource of more than two billion pounds of copper and an inferred resource of 1.6 billion pounds of copper.
Besides increasing overall contained copper in measured and indicated resources and proven and probable reserves, the deal allows the company to have access to regional discovery potential surrounding the Cloncurry project.
Subject to customary closing conditions, the transaction is expected to complete next year.