Columbus Copper (CCU.V) has announced it has reached an agreement with Teck Resources (TCK) whereby the latter will buy all of Columbus’ Turkish assets for a $1M consideration. A non-refundable $100,000 payment was due and this will help to ease the financial constraints at Columbus. As the company had already divested its Serbian assets earlier this year and is now selling its Turkish assets, Columbus Copper will basically be a cash shell with the Albanian chromite mine which the company is also looking to sell.
After seeing its share price crumble from more than 70 cents just 3 years ago to just 1 cent at this moment, Columbus Copper seems to be trying to re-invent itself. We currently don’t know yet what the strategy will be from here on, but we hope it will be adding value for the shareholders as we are still holding the shares at a huge loss.
Disclosure: The author holds a long position in Columbus Copper. Please see our disclaimer for current positions.