asx price query, page-4

From Business Spectator:

CBH shares surge on Perilya deal rumour



Shares in zinc and lead producer CBH Resources have surged 26 per cent, amid speculation they are soon to announce a key deal with rival Perilya Ltd.

Shares in CBH jumped three cents, or 26.09 per cent, to 14.5 on Thursday.

Patersons resources analyst Alex Passmore says he expects the company is on the cusp of announcing plans to jointly process ore from deposits in Broken Hill with Perilya.

"I would assume they are talking to Perilya on the joint processing of the central mining lease deposits," Mr Passmore said.

"They have talked in the past on that.

"That is an important growth project for CBH though, the Broken Hill area."

In response to a query from the Australian Securities Exchange (ASX) about their rapidly rising price, CBH said they were in confidential discussions with a number of parties regarding transactions focused on generating shareholder value.

"All these discussions are incomplete and are insufficiently definite to warrant disclosure," the company said.

Mr Passmore said he thought it was unlikely CBH and Perilya were going to announce a merger.

"CBH tried to merge with them about a year ago, but now I think they are more likely to do a deal on processing," Mr Passmore said.

Shares in Perilya finished down 0.5 cent at 69.5 cents on Thursday.