Corriente Resources (CTQ.to)(ETQ): Sold at last

My thanks to reader "d" for the headsup. I would have missed the news otherwise as not paying attention to the market today.

Bloomberg reports that Tongling (with a little help from its railway friends) has finally got round to making an offer for Corriente Resources (CTQ.to)(ETQ), the guys with the big copper deposit at Mirador, Ecuador. The price at CAD$8.60 works out at U$8.23 via today's forex. The joint listed Corriente was trading at U$7.64 this morning before the news. Now it's halted. Here's the Bloomie note:

Dec. 28 (Bloomberg) -- China Railway Construction Corp said it plans to jointly bid C$679 million for Corriente Resources Inc., a Canada-based junior mining company, with Tongling Nonferrous Metals Group Holdings Co. A joint venture company set up by the two Chinese companies plans to make an offer of C$8.60 per tradeable Corriente share, according to a statement filed to the Hong Kong stock exchange today.

Corriente (CTQ.to): The difference between rumours started by CFAs and rumours started by anyone else is.....

....that there is no difference.

Remember back on March 11th and 12th when Corriente Resources (CTQ.to) (ETQ) ran up on big volumes? Then remember on March 13th when Desjardins announced that takeover talks between CTQ.to and its 'mystery buyer' (whose name starts with a T, ends with a G and has onglin in the middle...apart from that we know nothing) were well advanced and how the sale would go through in the next two to three weeks?

Well last night we had this from the company:

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Mar 25, 2009 -- Corriente Resources Inc. wishes to advise that, contrary to recent media reports, there are no material developments to disclose regarding ongoing exclusive negotiations for the potential sale of the company that were announced on December 16, 2008.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And today we have the stock down 6.15% on 350k traded. The big day (and probably the reason why Desjardins started the rumour in the first place) is that the mystery buyer has an exclusivity deal up to and including March 31st, after which the deal is likely to lapse.

And you guys still believe these clowns-in-suits after all they've done to you. I know the saying goes "Fool me once shame on you. fool me twice shame on me", but how does it work for "fool me 100 times"?

Recently spotted in Quito, Ecuador

Reuters today reported that Corriente (CTQ) is being "eyed up by global mining giants". The report mentions big world player Xstrata as well as Chilean state miner Codelco, and then also mentions Chinese player Tongling. There was nothing really new about the fact that CTQ itself is talking with all and various companies, but the solid news contained was that the Ecuadorean gov't (and not CTQ) has been approached and has talked to these three entities.

FWIW, I think it very unlikely that Codelco will step out of Chile and take an active role in a new mine in a different country as they have plenty of projects on their local plate already. On the other hand, Codelco is a welcome visitor in Ecuador and a long-standing partner to the Chinese metals industry; an advisory role is more probable. To hear Xstrata is sniffing around is interesting and logical, but the one you have to pay attention to is Tongling. For one thing, it doesn't really matter which Chinese company is the ostensible front, as all the recent Chinese purchases of LatAm mining projects have been funded by the state.

But hearing the word Tongling also ties in with the fact that Corriente head honcho Ken Shannon and other CTQ bigwigs were very recently spotted dining (well, lunching to be precise) in a high class Quito restaurant with a large party of Chinese guests. A good time was being had by all, and Shannon picked up the bill. I'm sure it can be filed under "essential investor relations expenses."

What with the recently leaked draft mining law hitting the streets and looking reasonably business friendly it might be time to take a position in CTQ stock, but the greater uncertainty of the copper market will probably need to wash through before anything concrete happens., I'd guess. But all the same, CTQ.to is now one for the list of possible buys.

Buen provecho Ken, and good luck with the investor roadshow in New York at the end of the month ;-)