Copper Mountain buys Altona mining in $72m deal

Copper Mountain Mining's main asset is its namesake copper mine in British Columbia | Photo courtesy of Copper Mountain Mining

Vancouver’s Copper Mountain Mining (TSX:CMMC) has completed the acquisition of Australian junior Altona Mining for A$93 million, or about $72 million at today’s rates.

As part of the deal, each Altona share will be exchanged for 0.0974 Copper Mountain shares, which equates to a 41.7% premium based on closing prices at the time of both companies first agreed on the deal, in November.

The merger gives the Vancouver-based copper miner access to Altona’s assets, which include $30 million in cash, and a permitted development project in Queensland, Australia.

Copper Mountain’s main asset is the 75%-owned Copper Mountain open pit mine, in southern British Columbia, which is forecast to produce between 34,000 and 38,500 tonnes of the red metal this year.

The combination of the two companies creates a mid-sized copper miner, with an expected annual production of about 73,000 tonnes of the metal.