- Our Town
First Quantum Minerals to buy Lumina Copper
By The Canadian Press
VANCOUVER - Shares of Lumina Copper Corp. shot higher Tuesday after First Quantum Minerals Ltd. (TSX:FM) announced a stock-and-cash deal to buy the company that values it at roughly $470 million.
Lumina Copper owns a copper deposit in northwest Argentina and says First Quantum will be able to develop the Taca Taca deposit into a major copper mine.
Under the friendly deal, Lumina shareholders may choose to receive $10 in cash, 0.4348 of a First Quantum share plus a penny in cash, or a combination of cash and stock for their shares.
The total cash available under the offer is roughly $222.4 million while the total number of First Quantum shares is limited to nearly 9.7 million shares.
Lumina shares were up $1.90 or about 24 per cent at $9.70 in trading on the TSX Venture Exchange.
First Quantum already owns 2.5 million of outstanding common shares of Lumina (TSXV:LCC).
The deal requires approval by a two-third majority vote by Lumina shareholders and the B.C. Supreme Court.
The companies said that holders of approximately 33.6 per cent of Lumina's shares, including all of the company's directors, officers and certain major shareholders, have agreed to support the deal.
The agreement also includes a break fee of $16.25 million payable by Lumina to First Quantum if the deal is not completed.
First Quantum operates seven mines, including operations in Turkey, Spain, Zambia and Finland, and is developing five projects.