Peru Copper Plunges More Than 20% On Expired Buyout Agreement

| About: Peru Copper (CUP)

Peru Copper Inc. (CUP) shares are down more than 20% in heavy Tuesday morning trading after the company announced the exclusivity agreement previously signed with a third party regarding the sale of the company had expired without a deal in place.

Canaccord analyst Wendell Zerb said in a phone interview that his initial guess as to why the deal fell through would be that the third party – who is still unidentified – felt the price tag was too high.

That said, Peru Copper offers good potential and other companies will be interested in their assets, he added.

Mr. Zerb wouldn't speculate which companies might be peaked but he did say the list is potentially quite long and includes major mining players down through to the mid-cap companies who may use their elevated share prices to move on the Peru Copper assets.

"A company like Peru Copper and its very large Toromocho copper project is of great interest."

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