Thompson Creek to Buy Terrane for $623.5 Million to Diversify Into Copper

Thompson Creek Metals Co., the operator of two molybdenum mines in North America, agreed to acquire Terrane Metals Corp. for about C$650 million ($623.5 million) to diversify into copper and gold.

Thompson Creek will pay 90 Canadian cents in cash and 0.052 of its shares for each share of Terrane, Thompson Creek said today in a statement. Goldcorp Inc. which holds a 52 percent stake in Vancouver-based Terrane on a fully diluted basis, agreed to vote in favor of the deal, Thompson Creek said.

Terrane owns the Mt. Milligan copper and gold mine project in British Columbia. Thompson Creek said it agreed to sell 25 percent of Mt. Milligan’s life-of-mine gold output to Royal Gold Inc. for cash payments totaling $311.5 million.

To contact the reporter on this story: Simon Casey in London at scasey4@bloomberg.net.

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