Antofagasta seeks to buy Duluth Metals, take full control of Minnesota project

TORONTO – Antofagasta PLC is moving to take full ownership of Duluth Metals Ltd. (TSX:DM), its Toronto-based partner in a copper, nickel and platinum-group metals project in northeastern Minnesota.

Duluth says Antofagasta is making a conditional offer of 45 cents Cdn per share cash, which is more than six times the Friday closing price for the Canadian company’s stock and 284 per cent above the 20-day volume-weighted average price.

The offer values Duluth Metal’s equity at $136.8 million.

Antofagasta currently owns about 10 per cent of Duluth Metals equity.

Duluth Metals says its board of directors and Wallbridge Mining, which collectively own 10.9 per cent of Duluth’s common stock, are supporting the friendly takeover.

The deal will require that at least two-thirds of Duluth Metals stock be tendered to the offer. Duluth Metals has agreed to pay a $3.5 million fee under certain circumstances if the deal isn’t completed.

Duluth Metals established a new 52-week low of six cents per share on Friday in above-average trading volume of more than 3.3 million shares exchange at the TSX.