The merger of Altona Mining with the Canadian-owned Copper Mountain Mining Corporation will create another tradeable copper producing investment option with more copper in reserve than its peers, more geographic spread in first choice jurisdictions and more leverage to the copper price, according to a research note put out by stockbroker Hartleys.
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Hartleys is the corporate advisor to Altona in relation to the merger which is set for likely completion in March 2018.
The merged entity will be a 35-40ktpa copper producer, with plans to double copper production by 2020 through the development of the Cloncurry project.
CMMC built the 14Mtpa Copper Mountain (British Columbia) mine and processing facility in 2011 and has a mine life based on reserves of 16 years.
Drilling at New Ingerbelle near Vancouver is aimed at verifying a historical resource which has the potential to add 10 years to the current mine life.
Hartleys said CMMC’s operating capabilities and access to finance would be applied to Cloncurry’s development in 2018.
“CMMC representatives in Australia began discussion with potential service and equipment suppliers to Cloncurry upon announcement of the merger,” Hartleys said.
“CMMC is also examining the effects on Cloncurry’s economics of an owner mining, leased equipment, and lower unit cost/bulk mining approach. Substantial inferred resources beneath the Little Eva pit may be brought into play as a consequence.”
The research note said a five year offtake agreement with the Mount Isa Mines smelter was signed in November 2017, and potentially significant results from regional RC drilling will be available in January 2018.
“At scheme terms, Altona shareholders will own 28.5% of the merged entity. The scheme is subject to shareholder approvals,” Hartleys said.
“The CMMC board has pledged unanimous support. Altona shareholders will vote on the scheme at a meeting on 15 March 2018.”
Derek Barry
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
