NovaGold (AMEX:NG) Makes Copper Canyon (TSXV:CPY) All-stock Bid

NovaGold (AMEX:NG) has reportedly made a $34.1 million all-stock bid for joint-venture partner Copper Canyon Resources (TSXV:CPY).

The key asset held by Copper Canyon is the percent interest they hold is the Copper Canyon copper-gold-silver property they're partners with NovaGold in, which holds the remaining 60 percent in the venture.

Also held by Copper Canyon is the Abo gold project, located in Harrison, B.C.

NovaGold said in a statement, "Copper Canyon shareholders will have continued upside exposure to the Galore Creek project and will gain exposure to a world class portfolio of North American gold and copper-gold projects."

The offer is subject to two-thirds of shareholders in Copper Canyon tendering their shares, along with the usual regulatory approval and waiver of the rights plan of Copper Canyon shareholders.

Copper Canyon CEO Tim Termuend made the usual comments of the offer being too low and how the assets they hold were of such high quality as to draw the bid.

Termuende said, "By making an offer for Copper Canyon, NovaGold has clearly acknowledged the quality and calibre of the Copper Canyon assets."

The offer from NovaGold was 0.0425 of a common share for each Copper Canyon common share. As of last Friday's closing price, that was equal to 60 cents a share.

The asset in question is right next to the Galore Creek project, which NovaGold and Teck Resources Ltd. (NYSE:TCK) own equally.

NovaGold is also in a 50-50 joint venture with gold mining giant Barrick Gold (NYSE:ABX) with the Donlin Creek property in Alaska.