First Quantum Enters LatAm Mining

Canada-based copper miner First Quantum Minerals is making its first entrance into LatAm via the acquisition of peer Antares Minerals for CAD460m, the company says. Antares owns copper and gold assets in Peru and Argentina. As part of the deal, each Antares share will be exchanged for 0.07619 of each First Quantum share or a cash payment of CAD6.35 per Antares share. Also, Antares’ 50% stake in the Rio Grande project in Argentina will be spun off into a new company, Regulus Resources. The new company will be 90.1% owned by existing Antares shareholders and 9.9% by First Quantum. If the deal does not go through, Antares will have to pay the buyer a break-up fee of CAD13.5m. “LatAm is an important copper jurisdiction, so it is certainly has been on our radar,” according to a spokeswoman, adding that First Quantum will be looking for more acquisition opportunities. First Quantum operates in Australia, Africa and Finland. BMO Capital Markets is First Quantum’s advisor while Antares worked with Dundee Securities.