cheap-copper

The Hunter Dickinson International (HDI) stable of companies, an accomplished Vancouver, Canada-based mine development group, are so bullish on their Arizona copper ISR play, Curis Resources, that they have decided it needs to be a part of their other, more established company, Taseko Mines.

Just a few minutes ago, Taseko announced a friendly all shares acquisition of Curis Resources for $1.055 per share or roughly $79 million.

Curis owns the Florence Copper Project which has exceptional economics, yet hinges on permitting in a complicated small Arizona prison town by the same name.

Earlier this year, we visited the project with then CEO Michael McPhie (now executive chairman at IDM Mining), Bob Moriarty and others (details).

Florence is one of the few ISR copper projects in development.  Now Mark Morabito's Excelsior Mining (MIV:TSXV) has one of the last remaining ISR copper projects in the peer group with the Gunnison project also in Arizona.

Understanding the Curis story:

The acquisition should not come as a big surprise to close followers of the company. Both Taseko and Curis are part of the HDI group, and share several board members, with Taseko being the cash flowing and more senior of the two firms.

The takeover premium offered by Taseko is a modest 21-per-cent to Curis's 20-day VWAP. As a shareholder in Curis, I am disappointed that the premium paid wasn't higher, however the increased liquidity of Taseko's shares and the diversification the company offers could be an upgrade to Curis shareholders, especially in the event permitting is further delayed at Florence.

Commenting on the Transaction, David Copeland, President and CEO of Curis stated, "With the announcement today of the acquisition of Curis by Taseko, I believe there is an opportunity for shareholders of Curis to benefit from both retained exposure to our Florence Copper Project and Taseko's continuing success in operating the Gibraltar Mine and developing the New Prosperity and Aley Projects. The Transaction also provides Curis shareholders with access to additional financial resources to de-risk the funding of the Florence Copper Project, ownership in a mature, cash flowing producer, as well as enhanced trading liquidity and analyst coverage."

The deal is subject to shareholder and BC Supreme Court approval and is expected to close in October. More details are contained in the news release: Taseko Mines Announces Friendly Acquisition of Curis Resources

Curis will be hosting an investor conference call tomorrow morning, at 8:30am PST, 11:30am EST. To dial in call 844-420-7671 or 716-247-5775 (international callers), citing conference ID# 2210089.

Taseko's friendly deal for Curis is not the only big news in the mining world today. Earlier Agnico Eagle bid $3.79 in cash and shares for Cayden Resources, which was trading at $1.05 earlier this year. My colleague Travis has that story (link).

Always do your own due diligence.