Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (32212)	2/4/2009 8:09:52 PM
From: LoneClone	Read Replies (1) \| Respond to of 195758

UPDATE 2-Grupo Mexico offers to buy smaller miner, eyes more Wed Feb 4, 2009 7:24pm EST reuters.com (Recasts; adds Grupo Mexico interview, dateline, byline) By Mica Rosenberg MEXICO CITY, Feb 4 (Reuters) - The mining arm of Grupo Mexico offered to buy out a small Canadian copper miner on Wednesday, and said its strong cash position gave it room to eye other targets despite a steep slide in metals prices. The Toronto-based Frontera Copper Corp (FCC.TO) said it agreed to support the C$42 million ($33.93 million) bid made by Grupo Mexico's (GMEXICOB.MX) mining unit, Southern Copper Corp (PCU.N), which was 10 percent above an earlier unsolicited bid by Invecture Group, a privately held Mexican group. Frontera ran into difficulties late last year as copper prices declined due to the global financial crisis. "Since the crisis began we, as a very solvent company with available cash, are looking out for opportunities in the market," Ricardo Arce, Grupo Mexico's director of new projects, told Reuters in an interview. Grupo Mexico ended 2008 with total consolidated debt of $1.688 billion and a cash and banks balance of $1.845 billion. The roughly $156 million in net cash gave it room to maneuver in the tough environment for the industry, the company said. Arce said Grupo Mexico, while putting off capital expenditures at its existing mines in Peru, is still eyeing possible acquisitions of small and medium-sized copper miners in Latin America and beyond. Grupo Mexico said the Piedras Verdes mine in northern Mexico could produce 32,000 tonnes of copper a year and has a mine life of over 11 years. The company said that once the deal is closed with Frontera the mine could be up and running within a matter of weeks. Frontera shares, which have lost more than 70 percent of their value in the past six months, were trading up 7 cents Canadian at 65 cents Canadian on the Toronto Stock Exchange. Grupo Mexico stock jumped 9.56 percent to close at 8.710 pesos, while the overall Mexican index closed slightly lower. Frontera maintains the right to terminate the agreement in favor of an unsolicited superior proposal, in which case a termination fee would be paid to Southern Copper. ($1=1.238 Canadian Dollar) (Reporting by Mica Rosenberg; Additional reporting by Krishna Chaithanya in Bangalore; Editing by Richard Chang) (mica.rosenberg@thomsonreuters.com ; 52 55 5282 7153; Reuters Messaging: mica.rosenberg.reuters.com@reuters.net)