The Altona Mining Ltd (ASX: AOH) share price has shot up 16% on news it is being taken over by Copper Mountain Mining Corporation, a Canadian copper miner by way of a scheme of arrangement.
The acquisition will be completed pursuant to a Merger Implementation Deed (MID), under which Altona has agreed to propose the scheme that would allow Altona to become a wholly owned subsidiary of CMMC.
Under the arrangement each share of Altona stock will be traded for 0.0974, of either a CMMC CDI or a CMMC common share, which trades on the TSX.
Altona Mining Ltd is a copper company focused on the Cloncurry Project in Queensland, Australia, which has a measured and indicated mineral resource containing over 2 billion pounds and an inferred resource of 1.6 billion pounds of copper.
Copper Mountain Mine's principal asset is a 75% stake in a large open pit located in Southern British Columbia which has a large resource of minerals.
The total consideration offered for all of the outstanding shares of Altona is $93 million, representing 17 cents per share and is a 41% premium to $0.12c, the closing price on the day prior to the execution of the MID.
Dr Alistair Cowden, Managing Director of Altona, said: "We are delighted to join CMMC to form a new high growth copper producer. We are excited to bring CMMC's depth of experience in constructing and operating a large-scale open pit copper mine to bear upon the Cloncurry Copper Project.
