Altona gains approval for $93m merger

Aspiring copper miner Altona Mining is one step closer to a $93 million merger with Canada-based Copper Mountain Mining after Altona shareholders approved the scheme of arrangement today.

Under the agreement, each Altona share will be exchanged for 0.0974 Copper Mountain shares, valuing the Perth company at $93 million, or 17 cents per share.

At today’s meeting, 91.8 per cent of Altona shareholders voted in favour of the merger.

Copper Mountain shareholders will vote on the deal today (Canada time) and if approved Altona expects the remaining conditions to be satisfied in due course.

Altona will now apply to the Federal Court of Australia for approval.

The company expects the scheme to become effective on April 4.

Once the merger is approved, Kevin Maloney, Paul Hallam and Steven Scudamore will resign from the board while Jim O’Rourke, Don Strickland, Rod Shier and Eric Hughes will be appointed as directors.

Under the agreement, Altona managing director Alistair Cowden will be appointed to the Copper Mountain board and will remain in an executive role in Australia.

Altona owns the undeveloped open pit Cloncurry copper project in Queensland, while Copper Mountain has a 75 per cent stake in a copper pit in southern British Columbia that is on course to produce about 35,000 tonnes for the year.

The combined company will have around $C78 million ($75 million) cash with a pro forma market capitalisation of $C300 million ($288 million).

Altona shareholders will own about 28.5 per cent of the company if the transaction proceeds.

Shares in Altona fell 4 per cent to 12 cent each today.