La Mancha Resources Inc. (LMA), a Montreal-based gold exploration company, jumped the most in 17 months after saying France’s Areva SA plans to auction its majority stake.
The shares climbed 19 percent to C$3.90 at 11:10 a.m. in Toronto. It earlier advanced as much as 23 percent, the biggest intraday gain since Sept. 20, 2010.
La Mancha formed a special committee to carry out an auction, it said in a statement after the close of regular trading yesterday. The committee hired BMO Nesbitt Burns Inc. as its financial adviser and Fasken Martineau DuMoulin LLP as legal counsel, La Mancha said.
Areva’s Cie. Francaise de Mines et Metaux unit owned 63 percent of La Mancha as of April 8, according to data compiled by Bloomberg. The stake has a current market value of about C$351 million ($353 million).
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