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The friendly takeover of Corriente Resources Inc. by a Chinese consortium sent shares of the Canadian copper miner up more than 13 per cent in Tuesday trading on the Toronto Stock Exchange.

Corriente stock rose $1.01 to close at $8.56, a gain of 13.4 per cent in heavy trading of more than 12.6 million shares on Canada's main stock market.

Corriente announced Monday afternoon it has agreed to a $679-million takeover by RCC-Tongguan, a venture jointly owned by China-based Tongling Nonferrous Metals Group Holdings Co. Ltd. and China Railway Construction Corp. Ltd.

Under the agreement, Tongling and China Railway will pay $8.60 in cash for each share of Corriente, a company which develops copper, gold, silver and molybdenum mines. The company's main assets are mining rights in southeastern Ecuador's Corriente copper belt.

The transaction continues the flood of deals made by China's state-owned mining and oil companies, flush with cash from the Asian country's economic boom. They are acquiring companies around the world to help supply the rapidly growing Chinese economy with primary metals, oil and gas and other resources.

Earlier this year, China Investment Corp. invested $1.7-billion for a 20 per cent stake of Vancouver-based zinc, copper and coal miner Teck Resources Ltd. , Canada's largest publicly traded mining company.

More recently, Athabasca Oil Sands Corp. announced a joint-venture agreement with PetroChina that would see the Chinese company acquire a 60 per cent interest in two oil sands properties in northern Alberta for $1.9-billion.

Chinese companies also own stakes or have financed other metals and energy projects in Canada.

The Corriente transaction and other deals involving Chinese companies could be reviewed by the Canadian government if they fall within guidelines under the Investment Canada Act.

That law requires a review any time a Canadian company with assets of more than $312-million is acquired. The legislation was amended last spring to include a national security test as well.

In the case of Corriente, the transaction will help the company finance develop of its South American metals projects.

"We are pleased to have reached an agreement with CRCC-Tongguan, who is committed to bringing their vision of responsible mining development to Ecuador," said Corriente chief executive officer Ken Shannon.

"The Mirador and Panantza-San Carlos copper projects will require large-scale capital investment by CRCC-Tongguan to unlock the infrastructure development, social benefits and jobs that will flow to the people of Ecuador."

The offer, which values Corriente at about $679-million on a fully diluted basis, represents a 27 per cent premium to Corriente's average trading price for the 30 trading days through Dec. 24.

The offer will be open for at least 35 days and is subject to a number of conditions, including the acquisition of at least two-thirds of the company's shares.

All officers and directors of Corriente, who collectively hold 12 per cent of the company's shares, have entered into lock-up agreements with the Chinese companies to sell their stakes. And if the friendly deal is derailed, Corriente has agreed to pay a termination fee of $20-million under certain circumstances.

Tongling is a huge state-owned mining conglomerate involved in copper mining and processing, smelting and refining.

China Railway Construction is one of China's biggest companies and raised $5.4-billion in a March 2008 initial public offering in Hong Kong. The construction company is one of the biggest in the world, operating in some 60 countries and regions.

CRCC-Tongguan, incorporated in China on Dec. 10, is jointly owned by China Railway and Tongling to jointly develop their global mining businesses.

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