Vancouver – Notching up their bids a few pennies at a time, Imperial Metals (III-T, IPMLF-O) and Taseko Mines (TKO-T, TGB-X) appear engaged in a high-stakes game of leapfrog in the takeover battle for bcMetals (C-V, BMTLF-O).
The latest move has Taseko boosting its bid by a nickel to $1.15 for each bcMetals share, overtaking rival Imperial Metals’ recently increased offer of $1.125 per share.
Taseko also removed the key conditions of a litigation opinion and that bcMetals terminate its agreement with Hong Kong-based Global International Jiangxi Copper Mining to form a limited partnership for development of the Red Chris copper-gold deposit. The suitor also puts forward a sooner closing date than Imperial’s offer to woo shareholders.
Imperial’s recently increased bid, which has the support of bcMetals’ board, is conditional on a minimum tender of 50% plus one of the junior’s outstanding shares.
Under its takeover offer, Imperial reports holding about 17.2% of bcMetals’ shares while fellow suitor Taseko states it has been purchasing shares through the TSX Venture exchange to bring its total to 4.99% of the junior.
In early-January, bcMetals’ board of directors threw its support behind the Imperial Metals’ offer after coming to “mutually agreeable terms” on a takeover agreement only to see Taseko almost immediately raise its offer to match.
The initial 95-per-share offer launched by Imperial in early-September was subsequently withdrawn after a couple of months due to “certain risks and uncertainties” that could have arisen from bcMetals’ implemented shareholder’s rights plan. Under the poison pill any person or group acquiring more than 20% of the company’s shares would trigger a provision allowing shareholders to purchase additional shares at a 50% discount to market price, causing significant stock dilution and making the takeover more costly. BcMetals subsequently allowed its rights plan to expire.
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 lbs. copper and 2.4 million contained oz. gold). Additional measured, indicated and inferred resources outside the pit shell are 574.8 million tonnes at 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 years.
Shares of bcMetals rose in TSX Venture board trading to match the current top bid of $1.15 per share.
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