Corriente Resources Discusses Selling Itself

Corriente Resources Inc. (ETQ) shot up 10% on Tuesday morning after the Ecuador-based miner said it has entered into exclusive talks with an undisclosed party to discuss the potential sale of the company.

Shares in Corriente, were up C$0.43 to C$3.95, at 10:15 a.m. ET., the highest level they have reached since early October.

Catherine Gignac, analyst at Wellington West Capital Markets, said in a note to clients:

Corriente started the process in January 2008 to sell or joint venture the large Panantza/San Carlos copper projects in southeastern Ecuador and use the cash to build the more advanced, adjacent Mirador project. As market conditions changed through the year, it became a more plausible assumption that a potential partner could be successful in an arranged corporate bid at the right price.

Ms. Gignac said potential partners or buyers include Chilean-based Codelco or Antofagasta and Chinese-based Jinchuan Group. She added that major copper producers like Freeport McMoran Copper & Gold (FCX) and Teck Cominco Ltd. (TCK) are unlikely suitors given other commitments.

Kinross Gold Corp. (KGC), who recently acquired Corriente neighbour Aurelian Resources Ltd. (AUREF.PK), is also not expected to be in the mix.