May 30, 2011 / 3:00 PM / in 6 years

UPDATE 1-Pan Terra to buy Namibian high-grade copper mine, shares up

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May 30 (Reuters) - Shares of Pan Terra Industries rose 11 percent, after the Canadian mineral explorer signed a letter of intent to buy a majority stake in a high-grade copper mine owned by Namibia’s Mertens Mining and Trading Ltd.

Pan Terra said it will buy 90 percent of the shares of Mertens for C$6.6 million in cash, 2 million of its common shares and 2 million share purchase warrants at 78 Canadian cents each, valid for two years after the closing of the deal.

The company expects copper production from Mertens to fund its other Namibian operations and exploration costs.

Mertens owns a fully equipped copper treatment project in Tsumeb and a license to explore the mineral-rich areas surrounding the mine.

Pan Terra recently resumed trading on the Toronto Venture Exchange after a gap of four years. [ID:nL3E7FT2UD]

Shares of the company were trading at 92 Canadian cents in early trade on Monday on the Toronto Venture Exchange. (Reporting by Maneesha Tiwari in Bangalore; Editing by Don Sebastian) ((maneesha.tiwari@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: maneesha.tiwari.thomsonsonreuters.com@reuters.net

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