Fortescue aims to join red metal club with full acquisition of Alta Copper
Fortescue Ltd and Alta Copper Corp have entered into a binding agreement under which Fortescue proposes to acquire the remaining 64% of Alta Copper’s issued and outstanding common shares not already owned by Fortescue through a Canadian Plan of Arrangement.
Alta Copper shareholders will receive cash consideration of C$1.40 per share “representing a significant and attractive premium of 50% to Alta Copper’s 30-day volume weighted average price (VWAP) and implies a total equity value for Alta Copper of C$139 million.”
The Directors of Alta Copper who are entitled to vote have unanimously recommended to all shareholders that they vote in favour of the transaction. In addition, the Directors and Officers of Alta Copper and other shareholders who hold in aggregate 12.5% of the shares on issue have entered into voting support agreements committing to vote in favour of the transaction.
Alta Copper is the 100% owner of the Cañariaco Copper Project located in northern Peru within an emerging porphyry corridor that hosts several large exploration and development opportunities. The Cañariaco Project comprises 91 square kilometres of highly prospective tenure and includes the Cañariaco Norte deposit, the Cañariaco Sur deposit and the Quebrada Verde prospect.
The Cañariaco Project has a reported mineral resource of 1.1 billion tonnes at 0.42% copper equivalent grade (Measured and Indicated Mineral Resources) and 0.9 billion tonnes at 0.29% copper equivalent grade (Inferred Resources). A Preliminary Economic Assessment completed by Alta Copper in June 2024 outlined the potential for a long-life copper operation.
The statement said the transaction is consistent with Fortescue’s critical minerals strategy which has a focus on expanding the company’s copper portfolio and related exploration footprint. Fortescue says it is well placed to advance the Cañariaco Project relying on its presence in Latin America since 2018 and its well established technical, permitting and community engagement expertise. Following completion of the transaction, Fortescue says it will apply its proven approach of working collaboratively with local and indigenous communities to ensure the responsible, long-term development of the Cañariaco Project.
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