Vancouver — Taseko Mines (TKO-T, TGB-X) has jumped into the lead in the ongoing bidding war for bcMetals (C-V, BMTLF-O), recently leap-frogging ahead of a competing offer by Imperial Metals (III-T, IPMLF-O).
The latest move has Taseko boosting its bid by a dime to $1.25 for each bcMetals share for a total of about $48 million, overtaking rival Imperial Metals’ recently increased offer of $1.165 per share (about $45 million in total).
Taseko recently removed the key condition that bcMetals terminate its agreement with Hong Kong-based Global International Jiangxi Copper Mining to form a limited partnership to develop of the Red Chris copper-gold deposit. The suitor also attempts to woo shareholders with an earlier closing date than Imperial’s offer.
Imperial’s bid previously had support of bcMetals’ board, however, in light of Taseko’s latest $1.25 offer, the board has reversed course to back the current top bid. BcMetals has extended a 5-day window of opportunity to Imperial to amend its $1.165 offer to retain the board’s support agreement.
In early January, bcMetals’ board of directors threw its support behind the Imperial offer after coming to “mutually agreeable terms” on a takeover agreement — only to see Taseko almost immediately raise its offer to match.
Should bcMetals’ board recommend any other offer other than Imperial’s, a $1.8-million break fee would be payable and $2 million borrowed by bcMetals from Imperial under a financing agreement would be due.
Under the takeover offers, Imperial reports holding about 24.2% of bcMetals’ shares through tender and market purchases while fellow suitor Taseko states it has also been purchasing shares through the TSX Venture Exchange to bring its holdings to about 5% of the junior.
BcMetals’ Red Chris copper-gold porphyry deposit, located near Iskut, in northwestern British Columbia, hosts life-of-mine proven and probable reserves of 277.8 million tonnes grading 0.35% copper and 0.27 gram gold per tonne (about 2.1 billion contained pounds copper and 2.4 million contained ounces gold). Additional measured, indicated and inferred resources outside the pit shell stand at 574.8 million tonnes averaging 0.32% copper and 0.28 gram gold. Mining plans call for a conventional open-pit operation producing about 110 million lbs. copper and 75,000 oz. gold in concentrates annually over its first five.
BcMetals’ shares have risen to the $1.25-trading range on the TSX Venture board to match the current top bid price.
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