Taseko Mines to Gain Copper Project Via Curis Acquisition

Taseko Mines Ltd. (TSX:TKO,NYSEMKT:TGB) announced that it has entered into a definitive agreement under which it will acquire Curis Resources Ltd. (TSX:CUV). Curis’ main asset is the Florence copper project, located in Arizona.

As quoted in the press release:

The Florence deposit contains approximately 2.4 billion pounds of copper reserves with an average grade of 0.36% TCu, contained within a measured and indicated resource of 2.8 billion pounds of copper with an average grade of 0.33% TCu.

Under the terms of the Agreement, each Curis shareholder will receive 0.438 of a Taseko common share for each Curis common share held (the ‘Offer’), representing consideration of $1.055 per share based on Taseko’s 20-day volume weighted average price (‘VWAP’) for the period ending September 5, 2014. The Offer represents a 21% premium to Curis’ 20-day VWAP and a 31% premium to Curis’ 60-day VWAP, each for the period ending September 5, 2014, and based on Taseko’s 20-day VWAP and 60-day VWAP during the same period. Following the completion of the Transaction, Curis shareholders, excluding Taseko, will hold 12% of the pro forma company, calculated using basic shares outstanding.

Russell Hallbauer, president and CEO of Taseko, commented:

Florence adds diversity to our pipeline of development projects. There are very few copper projects in secure jurisdictions which have first quartile operating costs, such as Florence, and the timing of anticipated production from the project could be ideal for the next copper price cycle. Florence’s low initial capital costs should allow us to manage the project’s funding requirements through to production.

Click here to read the full Taseko Mines Ltd. (TSX:TKO,NYSEMKT:TGB) press release.