VANCOUVER, Sept. 17 /CNW/ - Copper Mountain Mining Corporation ("CMMC" or the "Company) announces that on the afternoon of September 15, 2009 the Company received a highly conditional, non-binding untimely share exchange proposal ("Proposal") from Taseko Mines Limited ("Taseko"). The Copper Mountain Board ("CM Board") allowed Taseko to personally present the Proposal to the CM Board. The Proposal contemplated a $10 million private placement by Taseko in the Company at $2.20 per share conditional, amongst other things, that the Company enter into an exclusivity agreement with Taseko. The CM Board noted that the Proposal was subject to among other things a 14 day due diligence period. Taseko also informed the CM Board that the final terms of the Proposal required Taseko's board approval. In addition, Taseko required the Proposal to be effected under a plan of arrangement and Taseko required more than 120 days to complete this.
In considering the Proposal the CM Board took into careful consideration the relationships of its key strategic partners and the potential of long term growth and opportunities for the Company. The resulting entity as outlined in the Proposal would have resulted in Taseko Shareholders owning 88% of the combined entity.
The CM Board was particularly concerned about accepting the Proposal in lieu of the $50 million equity financing as there was no certainty that the acquisition would take place nor was there any certainty that a definitive agreement would be entered into or the acquisition could be concluded in time to maintain the project schedule and meet financial commitments of the project. This would have jeopardized the Company's ability to maintain its interest in the Copper Mountain project for all shareholders. If the private placement was completed and the Proposal was not concluded, the Company would be in the position of having a competitor as a significant shareholder. The CM Board concluded that the Proposal was not in the best interests of the Company's shareholders.
Commenting on the Proposal Mr. Jim O'Rourke, Chief Executive Officer said: "the Proposal from Taseko was not an unconditional offer capable of immediate acceptance. It would jeopardize the Company's current financing and fails to give credible value to the Company's growth potential. Taseko is currently taking action in an attempt to stop our equity offering. Their approach of interfering with the Company's financing could deprive our shareholders of substantial benefit that could result from the development program which is underway. The $50 million equity offering satisfies the Company's equity requirements for the Copper Mountain Project. We are taking all steps necessary to protect the Company and our shareholders."
About Copper Mountain Mining Corporation:
CMMC is a Canadian resource company, managed by an experienced team of professionals with a solid track record of exploration and development success. The Company's shares trade on the Toronto Stock Exchange under the symbol "CUM". CMMC owns 75% and Mitsubishi Materials Corporation owns 25% of the Copper Mountain Project. The 18,000 acre mine site is located 15 km south of the town of Princeton in southern British Columbia. The Copper Mountain Project is a past producer of 1.7 billion pounds of Copper that closed in 1996, and therefore, there is significantly developed infrastructure on site that the Company can build upon. The Copper Mountain Project has a current resource of approximately 5 Billion pounds of copper and it is CMMC's goal to develop the Copper Mountain Project as a mid tier copper and precious metal mine to produce approximately 100 million pounds of copper per year by mid 2011. Additional information is available on the Company's web page at www.CuMtn.com.
On behalf of the Board of
COPPER MOUNTAIN MINING CORPORATION
Director and Chief Financial Officer
Note: This release contains forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the documents, filed by the Company on SEDAR at www.sedar.com, specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. The Company undertakes no obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statement.
SOURCE Copper Mountain Mining Corporation
For further information: For further information: Rod Shier, Chief Financial Officer, (604) 682-2992 ext. 222, Email: rod@CuMtn.com, Website: www.CuMtn.com