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Teck Cominco agrees to buy Aur Resources for C$4.1 billion
By Sarah Turner
Last Update: 6:41 AM ET Jul 3, 2007

LONDON (MarketWatch) -- Mining company Teck Cominco (TCK :CA:TCK.A48.71, 0.00, 0.0% ) said that it has agreed to buy Aur Resources (CA:AUR :CA:AUR31.70, 0.00, 0.0% ) for C$4.1 billion ($3.89 billion) in cash and shares. Aur shareholders will receive C$41.00 or 0.8749 of a Teck Class B subordinate voting share per Aur common share. The offer represents a premium of 29% based on the 20-day volume weighted average closing prices of the companies on June 29, according to Teck Cominco. "The acquisition of Aur Resources will immediately increase our cash flow and add substantially to our long term growth in copper production," said Teck Cominco President and Chief Executive Officer, Donald Lindsay. Annual copper production will grow immediately by over 200 million pounds, or around 43%, while copper reserves and resources will increase by 15 billion pounds or 136%. End of Story