First Quantum Minerals signs agreement to increase ownership of Minera Panama S.A. to 90%

An agreement between First Quantum Minerals Ltd. and LS-Nikko Copper has been signed which allows First Quantum to acquire 10% ownership interest and shareholder loans in Minera Panama S.A. which holds the concession for the Cobre Panama project.

The acquisition itself is valued at US$635 million, which is to be made payable in six installments over a five year period.

The acquisition's headline value is $635 million payable in six installments over a five-year period. The Company intends to finance the entire first instalment from proceeds of an additional precious metals stream specifically linked to the acquired 10% interest, whilst maintaining optionality as to how future installments are met.

Philip Pascall, Chairman and CEO, said "This acquisition underlines our confidence in this world class project and the strong fundamentals for copper. The Cobre Panama project is now over 60% complete and progressing well towards its commissioning next year, and on track to be one of the major, low-cost copper producers when in operation. We are very pleased that this compelling opportunity became available and that we have been able to reach agreement with LS-Nikko Copper on terms that match the development and commissioning timetable for Cobre Panama."

Read the article online at: https://www.globalminingreview.com/finance-business/08092017/first-quantum-minerals-signs-agreement-to-increase-ownership-of-minera-panama-sa-to-90/