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Frontera Copper Board of Directors Unanimously Recommends That Shareholders Accept Unsolicited Cash Offer of CDN$0.75 >From Invecture Group
Toronto and Phoenix, AZ - February 15, 2009 - Frontera Copper Corporation (FCC:TSX, FCC.NT:TSX, FCC.NT.A:TSX) ("Frontera" or the "Company") today announced that its Board of Directors has unanimously recommended that shareholders tender their shares to the offer made by Invecture Group, S.A. de C.V. ("Invecture") to purchase all of the outstanding common shares of Frontera at a cash price of Cdn$0.75 per share ("Invecture Offer").
The Board determined that the Invecture Offer is superior to the Cdn$0.65 per share offer previously received from Southern Copper Corporation ("SCC"). Under the terms of the support agreement executed between SCC and Frontera, SCC had the right to match a superior offer, but did not exercise its right within the stipulated five calendar-day period. The Company's financial advisor, RBC Capital Markets, has provided an opinion that the consideration offered pursuant to the Invecture Offer is fair, from a financial point of view, to Frontera shareholders.
The enhanced offer from Invecture represents a 15% increase from the offer received from SCC and a 27% improvement in price compared to the original offer received from Invecture in early December. Completion of the process of identifying and engaging other potential acquirers has resulted in the unanimous determination by the Board that under present economic conditions, acceptance of the Invecture Offer is in the best interests of all shareholders of the Company.
Under the terms of the Invecture Offer, Frontera shareholders may tender to the Invecture Offer up to 4:30 PM Pacific time on Tuesday, February 17. Shareholders are encouraged to review the document titled "NOTICE OF VARIATION AND EXTENSION" filed by Invecture on February 6 and posted on SEDAR for more information.
ABOUT FRONTERA COPPER CORPORATION
Frontera Copper Corporation is a Canadian mining, development and exploration company whose principal activity is the production of copper cathode from the Piedras Verdes run-of-mine heap-leach copper operation in Sonora, Mexico.
For further information, please see Frontera Copper's website at www.fronteracopper.com or contact:
Rodney Prokop
Vice President, Investor Relations
(602) 424-5483
ir@fronteracopper.com
Alan Edwards
President and Chief Executive Officer
(602) 424-5488 |