TORONTO - Shares in International Minerals Corp. (TSX:IMZ) were up about 10 per cent Wednesday, following a friendly takeover offer that valued the company at more than C$357.6 million.
International Minerals shares were up 25 cents at C$2.86 on Wednesday afternoon at the Toronto Stock Exchange.
Hochschild Mining PLC, IMZ's partner in two Peruvian mining projects, is offering US$2.38 in cash for each share of IMZ that it doesn't already own. International Minerals shareholders would also receive one share of a new public company, which has an estimated value of between 58 and 85 cents Cdn per share.
International Minerals estimated the total value of the offer at C$3.04 to C$3.31 per share including the value of the new shares in the company, which will hold IMZ's non-Peruvian assets, including the Gemfield gold project in Nevada.
Hochschild, which is IMZ's partner in the Pallancata silver mine and the Inmaculada gold-silver development, currently owns about 3.76 million shares of International Minerals, or roughly 3.2 per cent of its outstanding stock.
The deal, which was announced late Tuesday, requires court approval and two-thirds of the votes cast by International Minerals shareholders excluding Hochschild.
The deal includes a US$10 million termination fee payable by either side in certain circumstances and gives Hochschild the right to match a competing superior proposal.
International Minerals is a Toronto listed company, but has its head office in Scottsdale, Ariz.
Hochschild's head office is in Lima, Peru, and its shares (LSE:HOC) are listed on the London Stock Exchange. They closed Wednesday at 1.55 pounds, down 19.5 pence or 11 per cent.