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Copperbank Resources announces acquisition of Redhawk Resources

Mining News - Published on Wed, 27 Jun 2018

Image Source: nasdaq.com
Copperbank Resources Crop announced that the execution of a definitive arrangement agreement pursuant to which CopperBank will acquire all of the issued and outstanding shares of Redhawk Resources, Inc.

CopperBank's acquisition of Redhawk and its Copper Creek Project, located in Arizona, represents a further continuation of the Company's copper consolidation business model and increases the Company's portfolio of copper development projects in the United States to four. The acquisition will be effected by way of a plan of arrangement completed under the Business Corporations Act wherein CopperBank will acquire all of the issued and outstanding shares of Redhawk in consideration for the issuance to each Redhawk shareholder of approximately 0.929 shares of CopperBank for each Redhawk share held. Upon completion of the Transaction, Redhawk will be a subsidiary of CopperBank, and CopperBank will be owned approximately 75% by current CopperBank shareholders and 25% by former Redhawk shareholders.

Mr Giulio T. Bonifacio, President & CEO of CopperBank, commented that "We believe the Transaction creates excellent value for the shareholders of both CopperBank and Redhawk, and we look forward to working with the Redhawk team to integrate their Copper Creek project into our portfolio of diversified copper assets in the United States. This Transaction is consistent with our consolidation strategy of making accretive acquisitions of advanced stage projects in mining-friendly jurisdictions that possess significant resources with considerable exploration upside. Copper Creek's large land package has not been fully explored with resources open in all directions and several drill ready targets yet to be tested."

Mr Gianni Kovacevic, Executive Chairman of CopperBank, added that "We see great potential in the future upside of copper as global growth spurs demand and the electrification of our economy continues. Although the copper price has performed well of late, copper equities have lagged behind and in our view continue to remain undervalued. Our strategy remains to consolidate resource and development stage projects with 'pounds in the ground' optionality in light of our positive outlook for copper in the coming years." Mr Stephen Barley, Executive Chairman of Redhawk, commented that "This Transaction provides Redhawk shareholders with the opportunity to gain exposure to CopperBank's unique suite of promising assets, while maintaining leverage to Copper Creek as continued shareholders in the new Company. Giulio Bonifacio's experience in exploring, developing and permitting US-based copper projects will leave CopperBank well positioned during a time of anticipated growth in copper demand."

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Posted By : Rabi Wangkhem on Wed, 27 Jun 2018
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