Fortescue To Snap Up Remaining 64 Stake In Valued 100 Million Alta Copper

Fortescue to Acquire Remaining 64% Stake in Alta Copper, Valued at $100.92 Million

Australian-based metal mining company Fortescue has announced a binding agreement to purchase the remaining 64% of Alta Copper’s issued and outstanding common shares not already owned by the operator. The deal reflects a 50% premium to Alta Copper’s 30-day volume-weighted average price (VWAP) and values the company’s equity at approximately $100.92 million.

The acquisition is set to be executed via a Canadian plan of arrangement, with completion targeted for the March quarter of 2026. Fortescue currently owns around 35.7% of Alta Copper’s outstanding common shares and plans to acquire the remaining shares through its wholly owned subsidiary, Nascent Exploration.

Under the deal terms, Alta Copper shareholders are set to receive a cash consideration of $1.40 per share, representing a substantial return on investment for the company’s stakeholders. The offer has been welcomed by Alta Copper directors, who have unanimously recommended that shareholders approve the deal.

Alta Copper’s directors, officers, and other shareholders holding 12.5% of the outstanding shares have signed voting support agreements, assuring they will vote in favor of the acquisition. This level of commitment from key stakeholders underscores Fortescue’s confidence in the project’s potential and its ability to drive value for all parties involved.

The Cañariaco copper project, which is the sole property of Alta Copper, is situated within an emerging porphyry corridor with multiple major exploration and development prospects. Spanning 91km² of highly prospective tenure, the project comprises the Cañariaco Norte and Cañariaco Sur deposits, as well as the Quebrada Verde prospect.

The Cañariaco project hosts a reported mineral resource estimate (MRE) of 1.1 billion tonnes at 0.42% copper equivalent grade in the measured and indicated category and 900 million tonnes at 0.29% copper equivalent grade in the inferred category. This significant resource base positions the project as a prime target for metal extraction, providing Fortescue with an opportunity to expand its portfolio and drive growth.

Giulio T. Bonifacio, Alta Copper’s president and CEO, expressed his enthusiasm for the deal, stating that it represents “an excellent outcome for our shareholders given the significant costs and risk associated with advancing the Cañariaco project.” He further noted that this transaction is consistent with the company’s philosophy of delivering returns to shareholders at the appropriate point in the development plan of the Cañariaco project.

The acquisition of Alta Copper’s remaining shares marks an important milestone for Fortescue, as it strengthens its position in the global metal market and provides access to a significant copper resource. With this deal, Fortescue is poised to expand its operations, drive growth, and enhance its long-term prospects.

Fortescue’s decision to pursue the acquisition of Alta Copper reflects the company’s commitment to strategic growth and its willingness to invest in projects that have strong potential for metal extraction. The company has a proven track record of successfully operating mines and advancing exploration projects, and this deal is expected to be a significant contributor to its future success.

The completion of the acquisition is contingent on customary conditions being met and all required regulatory approvals being obtained, including approval from shareholders and courts. With Fortescue’s subsidiary, Nascent Exploration, already in place, the transaction is poised to move forward with minimal disruption to the project’s development timeline.

Peru, where the Cañariaco project is located, has emerged as a significant player in the global copper market, thanks to its rich mineral resources and favorable business environment. The acquisition of Alta Copper represents an important step forward for Peru, providing it with increased access to capital and strategic guidance.

As Fortescue moves forward with the acquisition, it is clear that the company is committed to creating value for all stakeholders involved. The deal represents a significant step forward for both companies, providing Alta Copper with access to increased capital and strategic guidance, while enhancing Fortescue’s long-term prospects through the addition of a substantial copper resource.

The importance of partnerships and collaborations in the mining industry cannot be overstated. By working together, companies can share risk, drive growth, and enhance their prospects for metal extraction. Fortescue’s decision to partner with Alta Copper demonstrates its commitment to building strong relationships and creating value for all stakeholders involved.

In conclusion, the acquisition of Alta Copper by Fortescue marks an important development in the global metal market. With its substantial copper resource and emerging porphyry corridor potential, the Cañariaco project is poised to play a significant role in driving growth and enhancing Fortescue’s long-term prospects.