GREY:LCPRF - Post Discussion
Post by
manlobster on Jan 11, 2011 9:38pm
Lumina may be worth more....
Hudbay wants Norsemont's ConstanciaJan 10, 2011 5:01PMHudbay wants Norsemont's Constancia
HudBay Minerals (HBM-T, HBM-N) is looking to add a significant Peruvian asset to its portfolio by way of acquiring
Norsemont Mining (NOM-T).
HudBayhas made a $520 million pitch to Norsemont shareholders in the hope ofnabbing Norsemont's copper-rich Constancia project in southern Peru.
Thedeal would see Norsemont shareholders get 0.2617 HudBay shares and
.001 in cash, or $4.50 in cash with the cash consideration capped at$130 million. If all shareholders chose the cash option it would workout to each receiving $1.10 in cash.
Those numbers represent a33% premium on the volume weighted average trading prices over 20 daysof HudBay, which was $17.76, and Norsemont, which was $3.49 - a pricethat HudBay's president and chief executive David Garofalo saysrepresents fair value.
"You can't steal assets," Garofalo saidon a conference call. "You have to pay full price for what's beenoutlined. So the upside for shareholders is in the exploration --that's where significant accretion comes from. It's through the drillbit, and this project offers that kind of potential in spades."
https://www.northernminer.com/issues/story.aspx?aid=1000399082
Be the first to comment on this post