After Hours Alert: Rock-Tenn Company (NYSE:RKT), AuRico Gold Inc. (NYSE:AUQ), Theravance, Inc. (NASDAQ:THRX)

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Rock-Tenn Company (NYSE:RKT), an integrated manufacturer of corrugated and consumer packaging, has agreed to acquire the Simpson Tacoma Kraft Paper Mill located in Tacoma, Wash., for approximately $343 million. The transaction is structured as an asset purchase. Rock-Tenn Company (NYSE:RKT) has committed to invest $60 million in the mill during the next three years and has also entered into a seven-year wood chip supply contract with Simpson Lumber Company.

Shares of AuRico Gold Inc. (NYSE:AUQ) were higher in U.S. after-market trading despite the mining company reporting a 4.5% decrease in its overall proven and probable reserves at the end of 2013. The 290,000 ounce decline from 2012 levels to 6.5 million gold ounces was largely due to depletion of the company’s El Chanate and Young-Davidson open pit mines. Underground reserves fell about 1% at Young-Davidson while overall reserves declined 3%. Reserves at the El Chanate mine were down 15% year over year while reserve grades rose around 5%, the company said. Reserves at AuRico Gold Inc. (NYSE:AUQ)’s Kemess underground mine were little changed from year-ago levels.

The Kemess mine also contains an estimated 619 million pounds of 0.28% grade copper. In addition to its reserves, the company said it had a total of 2.5 million ounces of measured and indicated gold resources at a grade of 0.88 grams per ton along with around 500,000 gold ounces of inferred gold resources at a grade of 1.02 grams per ton. AuRico Gold Inc. (NYSE:AUQ) shares were ahead 0.8% at $5.02 apiece in the U.S. after-market, up 4 cents, after rising 1.2% during Monday’s regular session. AUQ.TO shares added 1.3% to close at $5.53 each in Toronto Monday afternoon.

Theravance, Inc. (NASDAQ:THRX) said Monday its plan to separate its businesses into two independent, publicly traded companies is now expected to be completed during Q2 2014, up from earlier guidance that the separate would occur in early 2014. This decision was reached following a review of the expected timelines for completion of third party activities.

In conjunction with the separation, Theravance, Inc. (NASDAQ:THRX), Theravance Biopharma, Inc., and Glaxo Group Limited (NYSE:GSK) have entered into a series of agreements clarifying how the companies will effect the spin-off and operate following the spin-off. In addition, the allocation ratio of potential future royalties in the LLC described below for sales of UMEC/VI/FF, MABA, MABA/ICS was adjusted to 15% for Theravance, Inc. and 85% for Theravance Biopharma from 2%/98% to better align the economic opportunity for Theravance, Inc., which retains overall responsibility for the GSK relationship and programs. These agreements include a three party Master Agreement, an amendment to the 2002 Collaboration Agreement between Theravance and GSK, an amendment to the 2004 Strategic Alliance between Theravance and GSK, and governance, registration rights and extension agreements between GSK and Theravance Biopharma.

The Master Agreement is currently effective, but will terminate if the spin-off is not effected by June 30, 2014, and the other agreements will become effective upon the spin-off, provided that the spin-off is effected on or before June 30, 2014 in accordance with the agreements. These agreements do not change the economics or royalty rates for the Collaboration Agreement or the Strategic Alliance Agreement.


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