VANCOUVER - The board of BCMETALS CORP. has strongly recommended that its shareholders reject the unsolicited takeover bid made by IMPERIAL METALS, also of Vancouver. Instead, the board says that shareholders should vote in favour of the partnership announced at the end of April 2006 with JIANGXI COPPER MINING.
The deal would facilitate the development of bcMetals' Red Christ project in northwest British Columbia. bcMetals would hold 25% of the partnership and contribute the Red Chris property to the deal and would not contribute additional money toward development. The other 75% would belong to Jiangxi Copper, China's largest integrated copper producer. Jiangxi has agreed to fund the additional capital costs necessary to bring the project into production. The partnership deal requires the approval of two-thirds of bcMetals shareholders.
The management of bcMetals recommends the Jiangxi Copper deal as a means of securing financing for the Red Chris mine and allowing bcMetals shareholders to participate in any profits from the project. Details of the limited partnership arrangement between bcMetals and Jiangxi Copper are available in the News at www.bcMetalsCorp.com.
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