Altona approves merger with Copper Mountain

Shareholders of Altona, which owns the Cloncurry Copper Project, have approved the merger with Canadian company Copper Mountain.
Shareholders of Altona, which owns the Cloncurry Copper Project, have approved the merger with Canadian company Copper Mountain.

Shareholders of Australian mining exploration company Altona have approved the merger with Canadian company Copper Mountain.

Over 90% percent of its shareholders voted in favour of the arrangement last month which will see Copper Mountain Mining Corporation acquire all of the shares in Altona.

The deal means CMMC is now trading on the Australian Securities Exchange and the company already trades on the Toronto Stock Exchange.

The Canadian company announced its $93 million acquisition of Altona Mining in November.

According to the two companies, the deal will create a multi-jurisdictional, mid-tier copper producer with annual production of around 73,000 tonnes of copper by 2020.

CMMC’s flagship mine is its 75 per cent-owned Copper Mountain open pit operation in British Columbia, which produced 34,392 tonnes of copper and 23,600 ounces of gold last year.

Altona’s main asset is the Cloncurry project which currently has an estimated annual copper production of around 73,000t and combined proven and probable reserves of 0.92 million tonnes of copper.

A research note put out by stockbroker Hartleys in January found the merger would 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.

Altona tenements in the North West.

Altona tenements in the North West.

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.

In February Altona told the Australian Stock Exchange about an emerging new cluster of copper-gold at its Cloncurry Copper Project.

Altona told the ASX they had excellent drill results from three targets about 25 kilometres south of Little Eva as part of a 30 hole RC drilling program late last year.