Cranbrook’s Copper Canyon Resources Ltd. (TSX-V:CPY) has formed a special committee in response to a $34.1 million unsolicited takeover bid by Vancouver’s NovaGold Resources Ltd., originally announced December 20.
NovaGold has issued formal documentation – a bid circular – to Copper Canyon in which it offers to acquire all shares of Copper Canyon for approximately $0.60 per share.
Copper Canyon’s share price during mid-morning trading on Friday was $0.80, an 8% increase from Thursday’s close.
Copper Canyon has traded in the $0.70 to $0.88-range since the bid was announced.
It said in a release it is preparing a response in the form of a director’s circular, which will be issued by February 2 and will include a formal recommendation to shareholders whether to accept or reject the NovaGold bid.
Copper Canyon’s principal asset is a 40% joint-venture interest in the Copper Canyon copper-gold-silver property next to the Galore Creek project in northwestern B.C.
Galore Creek is owned equally by NovaGold and Teck Resources Ltd.
Copper Canyon’s share price range during the last week: $0.74 to $0.85; 52-week high: $0.88; 52-week low: $0.17.