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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (37856)	4/9/2007 11:35:22 AM
From: LoneClone	Read Replies (1) \| Respond to of 78416

UBS raises price target on Lundin following takeover announcement communities.canada.com UBS analyst Brian MacArthur raised his price target on Lundin Mining Corp. (LUN/TSX) from $15 to $16 after the metal miner announced it has entered into a takeover agreement with Rio Narcea Gold Mines Ltd. (RNG/TSX). His 'buy' rating remains unchanged. "We believe this transaction is positive for [Lundin] as it diversifies their product mix in a politically low-risk region and synergies may be obtained," Mr. MacArthur said in a note to clients, adding the proposed transaction appears to be accretive given his commodity price assumptions. Under terms of the agreement, Lundin will offer $5 per share in cash for all outstanding shares of Rio Narcea and $1.04 in cash for each outstanding warrant. Mr. MacArthur also noted that Red Back Mining (RBI/TSX) has contingent to Lundin's bid for Rio Narcea, agreed to buy Lundin's Tasiast gold mine for US$225 million in cash and US$42.5 million in debt related to the mine. David Pett