Metals News
UPDATE 2-NovaGold Plans to Buy Copper Canyon for C$34.1 mln
industry news
10:19AM
Dec 21,2010
Source:SMM

Dec 20 (Reuters) - NovaGold Resources Inc (NG.TO) (NG.A) said it plans to buy junior peer Copper Canyon Resources Ltd (CPY.V) for about C$34.1 million ($33.7 million) in stock, to gain full control over its copper-gold-silver mine in British Columbia.

NovaGold, with interests in British Columbia and Alaska, plans to offer 0.0425 shares for each Copper Canyon share.

Copper Canyon said, in a separate statement, the offer translated to 60 Canadian cents per common share -- a 42 percent premium to its stock's Friday closing price.

The explorer's principal asset is its 40 percent joint venture interest in the Copper Canyon copper-gold-silver property in British Columbia, adjacent to the Galore Creek project owned equally by NovaGold and Teck Resources Ltd (TCKb.TO).

A wholly owned subsidiary of NovaGold owns the remaining 60 percent in the Copper Canyon property.

"By making an offer for Copper Canyon, NovaGold has clearly acknowledged the quality and caliber of the Copper Canyon assets," Chief Executive Tim J. Termuende said.

NovaGold shares, which have gained 46 percent in value since the company posted third-quarter results in October, were trading up 7 percent at C$14.98 on Monday on the Toronto Stock Exchange. ($1=1.013 Canadian Dollar)
 

 

 

 

 

 

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