Two Chinese mining companies are set to snap up Vancouver's Northern Peru Copper (TSX:NOC)for $455 million in cash.
China Minmetals Nonferrous Metals Co. Ltd. and Jiangxi Copper Company Ltd. are offering $13.75 per share for Northern Peru. The price represents a 35% premium on Northern Peru's volume weighted average price for the past 20 trading days.
The deal is expected to close in early 2008. Full details of the takeover offer will be released to shareholders in the next couple of weeks.
Through the deal, China Minmetals and Jianxi Copper will get Northern Peru's Galeno copper, gold and molybdenum project located beside Yanacocha, which is near the city of Cajamarca, Peru, and is South America's largest gold mine.
Northern Peru Copper's share price range during the past week: between $10.25 and $11.35; 52-week high: $12.60; 52-week low: $5.37.