Vancouver's Teck Cominco Ltd. (TSX:TCK.B; NYSE:TCK) is securing more copper deposits with its planned $394.3 million acquisition of Vancouver's Global Copper Corp. (TSX:GLU).
Global Copper owns the Relincho copper and molybdenum deposit located roughly 660-kilometres north of Santiago, Chile. The deal values the deposit at an estimated $415 million.
Under the proposal, Teck will acquire the Relincho deposit, and spin off other Global Copper assets including the Taca Taca and San Jorge properties in Argentina into a new company to be named Lumina Copper Corp.
Global shareholders will receive one share of Lumina Copper and either $12 per Global share or 0.26667 of a Teck Cominco Class B share.
The boards of directors of both companies have voted unanimously in favour of the proposed deal expected to close on September 30, that still requires shareholder and regulatory approval.
Teck Cominco's share price range during the past week: between $48.25 and $46.50; 52-week high: $53.35; 52-week low: $28.00.