Deal will boost mining company's stake in Peruvian copper and gold project to about 80 per cent
VANCOUVER—Teck Resources Ltd. is buying up the remaining stake in junior mining company AQM Copper Inc. for approximately $25 million.
Teck already owns about 30 per cent of AQM, whose main asset is an indirect interest in the Zafranal copper and gold project in southern Peru. The acquisition will boost Teck’s interest in the South American site to about 80 per cent; the company owned 50 per cent of the project previously.
The Vancouver-based miner will pay AQM shareholders 23 cents per share, valuing the company at about $35 million. AQM was trading at 15 cents per share at close Nov. 18.
AQM’s board of directors has fully-endorsed the deal, while 18 per cent of the Canadian-based company’s shareholders have already committed to supporting the agreement.
The acquisition is expected to close in January, but remains subject to customary closing conditions.