Teck Cominco to acquire Global Copper

Global Copper and Teck Cominco have entered into an agreement for Teck to acquire Global by way of an arrangement under the Business Corporations Act (British Columbia).  Global’s principal asset is the Relincho copper/molybdenum deposit located in northern Chile, approximately 660 km north of Santiago. 

Under the arrangement, Global shareholders will receive C$12 or 0.26667 of a Teck Class B subordinate voting share per Global common share, subject to pro-ration, and one share of a new company, to be named Lumina Copper Corp.  

Lumina Copper will hold all assets of Global other than the Relincho project, including Global’s interest in the Taca Taca and San Jorge properties in Argentina, $10 million in cash and a 1.5% net smelter return royalty in respect of the Relincho project, payable commencing in the fifth year after the start of commercial production.

The transaction effectively values the Relincho project at a minimum of $415 million.  The $12.00 minimum consideration payable by Teck represents a premium of 29% to the 20 day volume weighted average price of Global common shares on the Toronto Stock Exchange as at April 11, 2008, excluding the value of the Lumina shares to be received by Global shareholders.
Ross Beaty, Chairman of Global said, “I am very pleased with Teck’s excellent offer to acquire our company. I know Teck well – it is an outstanding diversified mining company with extensive copper operations in Chile and is fully capable of developing Relincho into a major mine. Global shareholders will retain exposure to Relincho’s future
development through the Relincho royalty, and plenty of exposure to copper and exploration potential through the assets in our new company once this deal closes. I encourage all Global shareholders to vote in favour of this transaction.”

Don Lindsay, President and Chief Executive Officer of Teck, said, “We are very pleased to be able to make this substantial addition to our Chilean copper portfolio, which already includes two operating mines with excellent near-term potential for further development and the largest foreign-owned portfolio of exploration lands in the country. Based on Global’s published resource estimate for Relincho, this acquisition will increase Teck Cominco’s measured and indicated copper resources by approximately 25% on a contained copper basis.”
The Relincho project is located in Region III, Chile approximately 54 km northeast of the town of Vallenar. It consists of a large ‘Andean style’ copper/molybdenum porphyry system.  Global has been exploring and developing the Relincho project since June 2006. About Lumina Copper Corp

Lumina Copper will own the Taca Taca copper/gold project located in northern Argentina.  In January 2008, Global granted an option to Rio Tinto to earn a 75% interest in Taca Taca and Rio Tinto is currently engaged in an exploration drilling campaign. As well, the company will own the San Jorge copper/gold project located in central
Argentina.   In May 2006, Global granted Coro Mining an option to earn a 100% interest in the San Jorge project, subject to Coro making share and cash payments to Global based on the contained copper reserves in the feasibility study under preparation.