December 03, 2008

Teck Cominco to acquire Global Copper

Teck Cominco Ltd announced that it will boost its copper reserves by 25% after a CAD 425 million deal to buy Global Copper Corp.

Global Copper shareholders will receive cash and stock worth between CAD 12 and CAD 14 for each of their shares. They also will receive stock in a new public company to be named Lumina Copper Corp, which will hold Global Copper's assets other than the Relincho project. The agreement carries a CAD 12.5 million break fee if an outside offer prevails, and has been unanimously approved by the directors of both companies.

Global Copper Corp are main assets include the Relincho copper molybdenum deposit in northern Chile. The deal values the Relincho project at a minimum of CAD 415 million,

Mr Don Lindsay president & CEO of Teck said the deal is a good fit for the company and close to its other operations in Chile, which it picked up in the takeover of Aur Resources Inc. last year. He said "For the long term and building this company, having a very strong and thriving copper business is a good thing. We think we've got a very good deal."