Three funds advised by investment company Orion Resource Partners have together divested an 8.3% stake in Vancouver, Canada-based miner Capstone Copper for $386.9m, through a secondary offering.
Orion retains a 12% stake in the Americas-focused copper producer after this divestment, remaining one of its largest shareholders.
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Its strategic stake dilution from 32% in 2022 to 12% has facilitated the diversification of Capstone’s shareholder spectrum.
The transaction has lured a diverse group of new blue-chip investors, enhancing the mining company’s financial base.
Among these new investors are Asian resource funds, Australian superannuation funds, as well as large institutional funds.
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This deal is anticipated to bolster Capstone’s positioning for potential inclusion in the Australian Securities Exchange (ASX) 300 and ASX200 indices.
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By GlobalDataOrion managing partner Istvan Zollei said: “This successful cross-border transaction marks several significant milestones for Capstone and mining markets. We are delighted to have helped oversee the emergence of Capstone as a leading industry player.
“Today’s transaction further evidences the strength of Orion’s partnership as an investor of choice for the world’s premier metals producers.”
In 2015, Orion supported the inception of Mantos Copper and the acquisition of two Chilean mines.
The company’s strategic guidance has been pivotal in restructuring operations and financing development projects at Mantos Copper’s mines.
Capstone Mining and Mantos Copper merged in 2022, resulting in the creation of Capstone Copper with a market capitalisation of around $4bn.
Orion played a key role in promoting Capstone’s sustainability initiatives.
Capstone founder and CEO John MacKenzie said: “Orion has been a responsible and engaged investment partner to Capstone since the creation of the company in the public merger in 2022, and before that, when its funds initially invested in Mantos Copper in 2015.
“We are excited to continue delivering transformational and sustainable growth with the support of our existing and new shareholders.”
