DNT IS ALMOST THERE!!!!!!!!!!!!KORES in talks to acquire Candente Copper, source says
Story Korea Resources Corporation (KORES), the state-run South Korean natural resource mining company, is in talks to acquire Candente Copper [TSX: DNT], the listed Canadian mining company, a source familiar with the matter said.
“KORES has been eyeing Candente Copper for some time,” said the source after confirming the ongoing talks between the two parties to this news service. It is yet unclear how advanced the talks are, as he declined to further reveal the specifics of the deal. It is understood, however, that KORES has already retained an advisory firm to carry out due diligence on Candente.
A KORES spokesperson declined to comment on KORES’ interest in Candente, but said, “KORES has been acquisitive since last year in an effort to enlarge its size”.
Candente Copper also declined to comment.
KORES Canada, the regional business arm of the Korean company, which is based in Toronto, did not respond to calls seeking comment. KORES reportedly intends to list the Canadian office on the Toronto Stock Exchange to boost the business's status.
This news service previously reported that Vancouver, British Columbia-based Candente was seeking to sell itself within one year. In an interview with this news service on 7 November 2010, John Foulkes, the Vice President of Corporate Development, said that Candente had not received an offer in line with the value it expected, despite garnering some ‘extensive’ interest.
KORES has been actively pursuing global acquisitions in recent years. It made a bid to acquire the listed Australian coal mine, Whitehaven Coal [ASX: WHC], though the bid was later withdrawn. Last month, it reportedly finalized the deal to acquire a thermal coal mine in Indonesia for USD 84m.
A Korean local media report dated 12 April said that KORES was close to acquiring a controlling stake in an unspecified Canadian copper mine company. The report stated that KORES was targeting at least a 30% stake in an undisclosed company, with a suggested size of USD 1bn. The market cap of Candente Copper is currently USD 182m.
KORES posted KRW 166bn (USD 152m) in revenue and KRW 22bn in operating profit last year.
by T.J. Park and Hyongki Park in Seoul, and Divya Balji in Toronto