21 July 2010capital raising announcement● NeutralMajor
Thompson Creek agreed on July 15, 2010 to buy Terrane Metals Corp., owner of the Mt. Milligan copper-gold project, for about C$650 million (about C$413 million cash plus about 23.9 million new Thompson Creek shares). Each Terrane share gets C$0.90 cash and 0.052 of a Thompson Creek share, so existing shareholders will be diluted by the new shares. Alongside it, Royal Gold would buy 25% of Mt. Milligan's payable gold for $311.5 million in staged payments ($226.5 million at closing, $85.0 million during construction) plus a per-ounce payment of the lesser of $400 or market price for the first 550,000 ounces ($450 after that). The deal needs a 66 2/3% Terrane shareholder vote (expected September 2010), BC court approval and Canadian regulatory approvals, and Goldcorp (about 58% of Terrane's votes) has agreed to vote in favour.