Imperial delivers knock out punch in bcMetals tussle

Vancouver Imperial Metals(III-T) looks to have delivered the knockout punch in the battle to acquire bcMetals (C-V, BMTLF-O), raising its previous bid by 20 cents to $1.70 a share.

In light of the latest offer, rival suitor Taseko Mines (TKO-T, TGB-X) said it is suspending plans to deliver to bcMetal shareholders a $1.60 per share bid, which was also announced on February 2.

“We are not saying we won’t make another offer,” said Brian Bergot, a spokesman for Vancouver-based Taseko. But for the moment, the company it will leave on the table an earlier $1.40 a share offer, which was scheduled to expire on February 8.

bcMetals shares reacted by easing 5 to $1.70 on the TSX Venture Exchange on Febuary 5, the first day of trading after the latest Imperial offer was announced.Imperial rose 20 to $10.90 on the Toronto Stock Exchange, while Taseko fell 6 to close at $3.

The prize in this battle is bcMetals’ Red Chris copper-gold project in northern B.C., an asset which one mining analyst described as one of the most production ready properties in the province.

Slated for startup in 2008, the $228 million project is expected to produce 1.2 million oz gold and 1.85 billion pounds of copper over a 25-year lifespan.

Imperial, which already holds 22% of bcMetals, is eyeing Red Chris in a bid to join the ranks of Canadian mid-tier copper producers that includes Aur Resources (AUR-T). Its share of production from its flagship Mount Polley and 50%-owned Huckleberry mines in B.C. this year is forecast to be 98 million lb. copper, 58,800 oz. gold, 596,000 oz. silver and 210,000 lb. molybdenum.

Imperial described its latest bid as financially superior to that of Taseko’s and said it bid has been delivered through subsidiary CAT-Gold Corp. The bid remains open for acceptance until 4:00 p.m. (Pacific time) Febuary 16.