Skip to main content

First Quantum Minerals Ltd. is spending $635-million (U.S.) to boost its stake in the Cobre Panama mining project to 90 per cent.

The deal will see First Quantum increase its stake by 10 per cent by securing part of Korean metal producer LS-Nikko Copper's stake in the project.

The Toronto-based miner said it will pay for the deal over five years, with plans to cover the first instalment by forward-selling precious metal production from the mine.

The deal for the mine, which is set to produce mainly copper but also gold, silver, and molybdenum, comes amid increasing optimism in the mining industry and as copper prices hit a near three-year high.

First Quantum says the $5.5-billion project is over 60 per cent complete and on schedule for a gradual start-up beginning next year.

The company, which lost $35-million in the quarter ending June 30, says it is still working to finalize project financing for Cobre Panama.

Environment Minister Catherine McKenna says the auto industry has expressed its support for free trade in North America. The U.S. chief negotiator targeted the sector on the first day of NAFTA talks in Washington on Wednesday.

The Canadian Press

Report an editorial error

Report a technical issue

Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 28/03/24 1:24pm EDT.

SymbolName% changeLast
FM-T
First Quantum Minerals Ltd
+3.72%14.76

Interact with The Globe