Approval still pending for Azco-Phelps Dodge deal

Six months have passed since Azco Mining (AMEX) announced it was selling two copper deposits — one in Arizona, the other in Mexico — and the board of directors is still having difficulty convincing shareholders of the merits of the transaction.

A special meeting was adjourned recently when the company failed to receive the required 50% approval from shareholders. Another meeting, on Dec. 12, will determine the fate of the deal.

The agreement calls for Phelps Dodge (NYSE) to pay US$40 million for the sale of the Sanchez deposit in southern Arizona and 70% of the Piedras Verde copper deposit in Sonora state. After taxes, the company is expected to clear US$29 million.

Since the deal was announced in early May, about 9 million shares of Azco have been traded, and the stock price has lost half its value.

Also, Azco’s proposed merger with Princeton Mining (TSE) has not met with enthusiasm among shareholders.

Meanwhile, the company approved an increase in its number of common shares to 100 million from 50 million. Currently, Azco has 25.5 million shares outstanding.