Mercator Minerals Ltd. (TSE:ML), a copper-molybdenum mining company, tumbled in midday trading as it is considering alternatives after Intergeo MMC Ltd. said it may not extend the deadline for their merger deal.

Shares stumbled 25 percent to 6 Canadian cents at 2:23 p.m. in Toronto.

Vancouver-based Mercator said in a statement today that it has now been advised by Intergeo that it does not expect to request or agree to an extension of the completion deadline beyond August 1st.

Intergeo has also advised Mercator that it is prepared to waive the non-solicitation provisions in the Arrangement Agreement in order to allow Mercator to fully consider its alternatives.

Closing was delayed after the Russian Federal Anti-Monopoly Services requested more information. The deal will terminate unless the FAS completes its review before the cutoff date, according to the statement.

The companies announced in December that Intergeo would buy Mercator. The deal would give Intergeo control of Mercator’s Mineral Park copper, molybdenum and silver mine in Arizona and two projects in Mexico

"We are extremely disappointed in Intergeo's decision, especially in light of the strong operations and operational cash flows being generated by Mineral Park mine," Mercator Chief Executive Officer D. Bruce McLeod said in the statement. "We are considering our alternatives in this regard and will continue to provide updates as circumstances develop."

Mercator, which has 1 "buy", 5 "hold" and 3 "underperform" recommendations from analysts, has a market value of 20 million.