(MENAFN - ProactiveInvestors) () is due for a re-rating soon as a result of the passing of the Yerington Land Bill in the US Senate last week according to a research note from Dundee Capital Markets released today.
The passing of the bill represents a major catalyst for the company as it will allow it to advance permitting for stage 2 of its Pumpkin Hollow project in northwestern Nevada said Dundee analyst Joseph Gallucci.
The bill authorizes the transfer of 10400 acres of land from the Federal government to the city of Yerington in Nevada and now moves on to President Obama for a routine signature prior to year-end.
The company says it is expecting to complete the remainder of stage 2 permitting by the second quarter of next year as it has already been collaborating with the city of Yerington on the work required to meet the 180 day deadline to wrap up the acquisition of Federal lands.
It has two remaining permits for the stage 2 open pit phase including the stage 2 reclamation and air quality permits which will be modified to reflect the private land status Dundee said.
Currently 's Pumpkin Hollow site consists of a 6500 tonne per day full permitted underground mine and is expected to begin production ramp up of stage 1 in the second quarter of 2016 pending financing.
The underground mine has a 12 year anticipated life and is expected to produce some 70 million pounds of copper per year along with gold and silver by-products.
The deposit remains open with exploration to resume when shaft sinking is completed. The second stage of the project is a proposed 700000 tonne per day open pit mine which is currently in the permitting phase.
Dundee noted that its recent visit to the Pumpkin Hollow deposit was "very pleasing" as was the shaft sinking and above ground infrastructure.
"'s underground mine is fully permitted and now the Stage 2 open pit phase can be permitted within the next 180 days" said Gallucci.
"We believe that with the permitting being de-risked has become an M&A target.
"We believe is poised for a re-rating due to the passing of the Land Bill and again once the shaft is completed in 2015. However the company still needs financing for Stage 1" he added.
Dundee rates the company with a buy recommendation and a target price of $5.00 a share.