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Candente Copper ( (TSE:ATCU) ) has shared an announcement.
Alta Copper Corp. has addressed shareholder questions regarding its proposed arrangement under which a Fortescue subsidiary will acquire all Alta Copper shares it does not already own for C$1.40 per share in cash. The board is recommending the all-cash transaction on the grounds that it delivers a substantial premium to Alta Copper’s historical trading prices, provides immediate liquidity to investors in a thinly traded stock, avoids further equity dilution that would be required to fund advancement of the Cañariaco project, and shifts significant permitting, community and regulatory risks in Peru to Fortescue. The deal’s prospects are reinforced by support and voting agreements from current directors, executives and key former managers, including the company’s founder and past presidents, as well as by Fortescue’s 35.7% ownership and stated intention to oppose alternative proposals, limiting the feasibility of competing bids.
The most recent analyst rating on (TSE:ATCU) stock is a Hold with a C$1.50 price target. To see the full list of analyst forecasts on Candente Copper stock, see the TSE:ATCU Stock Forecast page.
Spark’s Take on TSE:ATCU Stock
According to Spark, TipRanks’ AI Analyst, TSE:ATCU is a Neutral.
The score is held back primarily by pre-revenue operations with ongoing losses and increasing cash burn, partially offset by a conservatively levered balance sheet. Technically, momentum is positive with price above major moving averages, but overbought indicators raise near-term risk. Valuation signals are limited because the company is loss-making and no dividend yield is provided.
To see Spark’s full report on TSE:ATCU stock, click here.
More about Candente Copper
Alta Copper Corp. is a Vancouver-based mining company focused on the exploration and development of its Cañariaco copper project in northern Peru. The company operates in the copper mining and development sector, with its value proposition tied to advancing this large-scale project through community engagement, permitting and technical studies in a challenging regulatory and social environment.
Average Trading Volume: 76,772
Technical Sentiment Signal: Buy
Current Market Cap: C$130.3M
For an in-depth examination of ATCU stock, go to TipRanks’ Overview page.