News Column

First Quantum Minerals To Buy Up Remainder of Lumina Copper Corp

June 17, 2014

Hana Stewart-Smith



LONDON (Alliance News) - First Quantum Minerals Ltd said Tuesday that it had agreed to acquire all outstanding shares in Lumina Copper Corp in a cash and shares offer, a deal that values Lumina at about CAD470 Million.


First Quantum currently own 2.5 million shares in Lumina. Lumina shareholders will be able to receive CAD5.00 in cash and 0.2174% of a First Quantum share, or alternatively 0.4348% of a share and CAD0.01 in cash, or finally CAD10.00 in cash per share.


The company said that the CAD10.00 cash offer represents a 34% premium to the volume weighted average trading price of shares in Lumina at CAD7.44 on the TSX venture exchange for the 20 trading days ended Monday.


The boards of both companies have approved the transaction. Shareholders of around 33.6% of Lumina's shares have signed voting support agreements in favour of the transaction, First Quantum said.


First Quantum will fund the cash portion of the transaction from its existing cash resources.


Lumina owns the Taca Taca copper deposit in the Puna region in north-west Argentina. The deposit has a mineral resource estimate on a National Instrument compliant basis of around 21.15 billion pounds of copper, contained in 2.17 billion tonnes grading 0.44% copper, 0.08 grammes per tonne of gold and 0.013% molybdenum.


Shares in First Quantum Minerals closed up 1.1% at 1,194.00 pence Tuesday.







For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Alliance News


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