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Copper Canyon shares jump 20 per cent on revised takeover offer from NovaGold
The Canadian Press, On Monday March 7, 2011, 12:18 pm EST
By The Canadian Press
VANCOUVER - Copper Canyon Resources Ltd. shares jumped more than 20 per cent Monday after the exporation-stage company agreed to a revised takeover offer from NovaGold Resources Inc. (TSX:NG).
Copper Canyon shares (TSXV:CPY) were up 17 cents to $1.01 at midday on the TSX Venture Exchange with over four million shares traded after the deal was announced Monday.
In the new proposal, Canyon Creek will effectively be split into two companies including a spinoff that will be largely independent of NovaGold and NovaGold will end up with 100 per cent of a property near the Galore Creek gold project.
The share swap arrangement would see Copper Canyon shareholders receive 0.07 of a share in NovaGold for each Copper Canyon share held, plus one share of a newly incorporated company, code-named SpinCo, for every four Copper Canyon shares.
The NovaGold shares were worth about $55.3 million at the time of the announcement. NovaGold stock later fell two per cent to $13.53, down 28 cents.
The deal represents an effective purchase price of $1.05 for each Copper Canyon share.
That's a significant improvement from the rejected all-stock bid that was worth about $34.1 million when it was announced in December.
SpinCo will hold substantially all of Copper Canyon's assets other than certain cash and Copper Canyon's 40 per cent joint venture interest in the Copper Canyon copper-gold-silver property, which it jointly owned with NovaGold.
NovaGold will primarily end up with a further 40 per cent share of the joint venture interest in the Copper Canyon copper-gold-silver property in British Columbia. It will also hold less than a 10 per cent stake in SpinCo, which will hold the majority of Copper Canyon's other assets.
The property is adjacent to the Galore Creek projecspan>
The Canadian Press, On Monday March 7, 2011, 12:18 pm EST
By The Canadian Press
VANCOUVER - Copper Canyon Resources Ltd. shares jumped more than 20 per cent Monday after the exporation-stage company agreed to a revised takeover offer from NovaGold Resources Inc. (TSX:NG).
Copper Canyon shares (TSXV:CPY) were up 17 cents to $1.01 at midday on the TSX Venture Exchange with over four million shares traded after the deal was announced Monday.
In the new proposal, Canyon Creek will effectively be split into two companies including a spinoff that will be largely independent of NovaGold and NovaGold will end up with 100 per cent of a property near the Galore Creek gold project.
The share swap arrangement would see Copper Canyon shareholders receive 0.07 of a share in NovaGold for each Copper Canyon share held, plus one share of a newly incorporated company, code-named SpinCo, for every four Copper Canyon shares.
The NovaGold shares were worth about $55.3 million at the time of the announcement. NovaGold stock later fell two per cent to $13.53, down 28 cents.
The deal represents an effective purchase price of $1.05 for each Copper Canyon share.
That's a significant improvement from the rejected all-stock bid that was worth about $34.1 million when it was announced in December.
SpinCo will hold substantially all of Copper Canyon's assets other than certain cash and Copper Canyon's 40 per cent joint venture interest in the Copper Canyon copper-gold-silver property, which it jointly owned with NovaGold.
NovaGold will primarily end up with a furt