Quadra Mining (QUA.to) is moving to buy out Centenario Copper (CCT.to). Here’s the relevant PR so go look for yourself, but the all-stock deal values CCT.to shares at a buck and the whole company at a ballpark $50m (though QUA.to will likely trade lower than its $3.95 close Friday). CCT’s main project in Chile is a heap-leachable SX-EW mine that holds close to 7Bn lbs copper. So for those who like to follow in-situ valuations, that’s 0.7c per Lb copper, give or take.
Strangely (or otherwise, depending on your point of view) CCT.to decides the day that a friendly buyout deal is announced is the day to unveil a new plan of action to integrate its two main projects. Some kind of latent “look at us not too late for a counterbid” wink to the general market, I suppose.
Finally, here are the 12 month charts for CCT.to and QUA.to. They hardly need any comment from me.
Centenario Copper 12 month chart
Quadra Mining 12 month chart
Update: A reader has just pointed out that my 7Bn lb number for the CCT.to resource is way wrong and it’s more like 1.5Bnlbs. Quite right, too. I have no excuse whatsoever for my calc/typing screw-up and will therefore leave the post unchanged as a testament to my own dumbassness. Apologies from me.