Alta Copper Corp T.ATCU

Fortescue Makes Moves At Alta Copper AGM

[RocksAndStocks]

Alta Copper just went through their AGM and their 31% shareholder, Fortescue, voted in favour of changes to the make up of the board of directors at Alta Copper. I find it very interesting to see the recent actions by Fortescue regarding Alta Copper and Alta's 100% ownership of the Canariaco copper project. One is the fact that they care enough about Canariaco to be an activist shareholder of Alta Copper, which says a lot to me about the quality of Canariaco. They already added their top mine builder to the board of Alta Copper. My guess is from the withholding of votes for certain directors means that they want some to stay. I would guess that they might want more of their team on the board to help the project move forward on their timeline. The message I see is that a major mining company sees that Canariaco is their path to getting into copper mining. It also tells me that they think they can help move it toward being a future mine faster. I also believe that there is a trend developing that majors want to be the partner of choice for explorers and developers. If they abuse the smaller players, they won't become the partner of choice. Ultimately, the actions of Fortescue is a sign that they think highly of Canariaco and realize they need to work with Alta Copper to move it forward as quickly as possible. At the end of the day, I think there is a pretty good chance that Fortescue will be the one that builds the mine at Canariaco if it becomes a future mine, which I think it will. In order to own it outright will need the support of shareholders as to what price they pay. Under securities laws the remaining 69% of the shareholders are protected to ensure they get a valuation that they support by way of 2/3 of the votes cast at a special shareholder meeting that does not include Fortescue share position. Additionally, any offer by Fortescue has to be supported by an independent valuation that any shareholder can contest. Fortescue is well aware of these regulations, they have to play nice with Alta Copper. The bottom line for me is that Fortescue thinks highly of Canariaco which puts the 100% owner Alta Copper in a strong position.