Potential Copper Takeovers Get Boost

Merger and acquisition activity in the copper sector has led Blackmont Capital analyst George Topping to raise his price targets on several names. His expectations for shares of Katanga Mining Ltd. [KAT/TSX], the target of Monday’s all-share takeover bid from London-listed Camec, moved to C$25.35 from C$20.30 per share, while his recommendation was upgraded to “speculative buy” from “hold.”

However, Mr. Topping noted that the large holding of insider shareholders could lead to a somewhat disappointing takeover price. His price target for Chariot Resources Ltd. [CHD/TSX] was hiked to C$1.75 from C$1.45.

As part of its takeover of Rio Narcea Gold Mines Ltd. (RNO), Lundin Mining Ltd. (LMC) will get a 20% stake in Chariot. It is currently developing the 70%-owned Marcona copper property in Peru.

Equinox Minerals Ltd. [EQN/TSX] moves to C$5.25 from C$4.05 per share. Its 100% owned Lumwana copper project in Zambia is considered a world-class asset and makes it a possible takeover target.

Augusta Resources (AZC) got a boost to C$4.60 from C$4.20 per share and Mr. Topping expects it will receive its permit for the Rosemont copper project in Arizona around the middle of 2008.

His target for Teal Exploration & Mining [TL/TSX] remained unchanged at C$9.75 due to the 65% stake held by African Rainbow Minerals, but copper and molybdenum play Mercator Minerals Ltd. [ML/TSX] got a boost to C$12.50 from C$11.35 per share.