Canadian Mining Journal

News

COPPER-GOLD: Teck to acquire AQM Copper, boost share of Zafranal project



PERU – Teck Resources of Vancouver has inked an agreement to acquire all the common shares of AQM Copper in Toronto. AQM’s  principal asset is a 30% indirect interest in the Zafranal copper-gold property 90 km northwest of Arequipa. Teck already holds a 50% interest in the project.

Under the arrangement, AQM shareholders will receive $0.23 in cash per AQM common share. The total cash consideration payable to AQM security holders (other than Teck, and including option holders and deferred share unitholders) is approximately $25 million, implying a total equity value for AQM of $35 million on a 100% fully diluted basis.

On completion of the transaction Teck will hold an 80% interest in the joint venture company and Mitsubishi Materials Corp. (MMC) will hold 20% with an option to increase its interest up to 30%.

The Zafranal project includes several known copper porphyry deposits with total measured and indicated resources of 467.3 million tonnes grading 0.38% Cu and 0.07 g/t Au. Contained metal is estimated to be 3.9 billion lb of copper and 1.1 million oz of gold. The inferred portion totals 21.4 million tonnes grading 0.24% Cu and 0.06 g/t Au and containing 114.0 million lb of copper and 40,000 oz of gold.

More information is posted at www.AQMCopper.com.