The CRCC-Tongguan Investment (Canada) Co., a joint venture with investments from China Railway Construction Corporation Limited (CRCC) and Tongling Nonferrous Metals Group Holdings Co.,Ltd., finally acquired 96.6 percent shares of CorrienteResources Inc. after two setbacks.
The bulletin released by Tongling Nonferrous Metals yesterday evening showed that CRCC-Tongguan purchased all the outstanding common shares of Corriente at a price of 8.60 Canadian dollars in cash per share before the expiry of the offer at 5:00 p.m. (Vancouver time) on May 28, 2010. CRCC and Tongling bought around 76 million common shares of Corriente under the agreement.
CRCC-Tongguan, was founded on Dec. 10, 2009 and it is a 50-50 joint venture by Tongling Nonferrous Metals and CRCC. After the joint venture's establishment, CRCC, Tongling Nonferrous Metals and CorrienteResources Inc. jointly signed an "acquisition support agreement" on Dec. 28, 2009.
According to the agreement, CRCC-Tongguan was set to acquire 100 percent shares of Corriente in 100 percent of cash of offer acquisition.
CorrienteResources Inc., a junior mining company listed in the securities market of Canada and the United States, was set up in Vancouver, Canada. Its main business was to explore and develop copper, gold, silver and gypsum.
The data showed that it is the second largest overseas copper mining acquisition deal for Chinese companies. In accordance with estimation by analysts, the deal can achieve profits of 150 billion yuan in total in a view of the 10 million tons' reserve after the acquisition.
China's consumption in copper accounted for 26.4 percent in 2008, the largest consumer in the world. Currently, China's dependency on copper ore is second only to the iron ore. China relies on imports for two-thirds of its copper ore. Before that, Chinalco successfully acquired Peru Coppe Inc. with 12 million tons of copper volume for the price of 86 million U.S. dollars.