Imperial Gets a Leg Up on Taseko in bcMetals Tussle

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

At presstime, in light of Imperial’s latest offer, rival suitor Taseko Mines (TKO-T, TGB-X) said it was suspending plans to deliver to bcMetal shareholders a $1.60-per-share bid, which was announced on Feb. 2, the same day as Imperial’s increased bid.

“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 will leave on the table a $1.40 a share offer, which was scheduled to expire on Feb. 8.

Having raised its offer to $1.70 from 95 when the bidding began last September, Imperial is valuing bcMetals at $74 million, based on its 43.7 million shares outstanding on a fully diluted basis.

BcMetals shares reacted by easing 5 to $1.70 on the TSX Venture Exchange on the first day of trading after the latest Imperial offer was announced.

Imperial shares rose 20 to $10.90 on the Toronto Stock Exchange, while Taseko fell 6 to close at $3.00.

The prize in this battle is bcMetals’ Red Chris copper-gold project in northern B.C., an asset that has been 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 110 million lbs. copper and 75,000 oz. gold in concentrates during its first five years in operation.

Imperial, which already holds 22% of bcMetals, is eyeing Red Chris in a bid to join the ranks of Canadian mid-tier copper producers, which includes Aur Resources (AUR-T, AURRF-O). 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 lbs. copper, 58,800 oz. gold, 596,000 oz. silver and 210,000 lbs. molybdenum.

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

If the latest offer succeeds, Imperial chief financial officer Andre Deepwell said the company would cancel an agreement that was reached between bcMetals and Global International Jiangxi Copper Mining.

Under the deal, bcMetals would have formed a limited partnership to develop Red Chris with Jiangxi Copper, which ranks as China’s largest integrated copper miner.

BcMetals would have held a 25% stake in the partnership, with the Chinese company holding the other 75%.

Deepwell said the partnership could be cancelled at a cost of US$1 million, allowing Imperial to develop the mine on its own.

“We are not in this fight to give away 75% of the property,” a company official said.