China-based Jiangxi Copper has expanded its ownership in Canadian metals company First Quantum Minerals by acquiring an additional stake for C$287.5m ($212m), Bloomberg reported.

The deal saw Jiangxi acquire 25.9 million shares in the Canadian company at C$11.10 apiece.

It is part of First Quantum’s efforts to strengthen its financial position following the forced closure of its Cobre Panama mine.

The Panamanian Government’s order in November to shut down the mine prompted the company to seek ways to address the resultant challenges. Last month, First Quantum raised C$1.55bn through a bought deal offering.

This fundraising was a key component of the company’s refinancing strategy aimed at bolstering its balance sheet in the wake of the Cobre Panama mine’s closure.

Additional funds from the latest deal will further assist First Quantum in navigating the financial implications of the mine’s shutdown.

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The Cobre Panama mine is a significant asset for First Quantum, and its closure has necessitated robust financial measures to ensure the company’s stability.

Jiangxi is the second-largest shareholder in First Quantum.

Last month, the Chinese company agreed to invest $500m in First Quantum, while First Quantum agreed to supply 50,000 tonnes of copper anode per year to Jiangxi from its Kansanshi mine in Zambia.

In the fourth quarter of 2023, First Quantum swung to a net loss attributable to shareholders of $1.45m, from a $1.17m profit in the same quarter of 2022.