April 16th, 2024

First Quantum launches US$1 billion bought deal to shore up its finances

By The Canadian Press on February 21, 2024.

The Cobre Panama open-pit copper mine stands in Donoso, Panama, Thursday, Jan. 11, 2024. A Canadian-headquartered mining company is seeking at least $20 billion through international arbitration in the wake of the shutdown of its copper mine in Panama. THE CANADIAN PRESS/AP-Agustin Herrera

TORONTO – First Quantum Minerals Ltd. says it will raise roughly US$1 billion through a bought deal offering and use the proceeds to repay debt and bolster its liquidity.

The deal is being underwritten by a syndicate led by RBC Capital Markets, BMO Capital Markets and Goldman Sachs, where the underwriters have agreed to purchase 121,680,000 common shares of First Quantum at a price of C$11.10 each.

In a bought deal, a bank or group of investors purchases a group of shares, usually at a discount, then sell them to a third party.

Earlier in the day on Wednesday, First Quantum revealed it’s seeking at least US$20 billion through international arbitration after the Panama government effectively shut down its copper mine in the country.

On Tuesday, the company reported a fourth-quarter net loss of US$1.45 billion and warned about its ability to continue operations over the next 12 months. It also said it was embarking on several measures to shore up its finances.

First Quantum shares closed 2.58 per cent higher on the TSX Wednesday at $11.91 but have lost more than half of their value over the past year.

This report by The Canadian Press was first published Feb. 21, 2024.

Companies in this story: (TSX:FM)

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