Australia-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 offer reflects a 50% premium to Alta Copper’s 30-day volume-weighted average price (VWAP) and values the company’s equity at C$139m ($100.92m).
The deal will be executed via a Canadian plan of arrangement, with completion targeted for the March quarter of 2026.
Fortescue currently owns roughly 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 C$1.40 per share.
Alta Copper directors who are eligible to vote have unanimously recommended that shareholders approve the deal.
Additionally, 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 favour of the acquisition.
Alta Copper is the sole owner of the Cañariaco copper project in northern Peru, situated within an emerging porphyry corridor with multiple major exploration and development prospects.
The project spans 91km² of highly prospective tenure and 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 (bt) 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.
The transaction will be completed only after customary conditions are met and all required regulatory approvals are obtained, along with approval from the securityholder and court.
Alta Copper president and CEO Giulio T. Bonifacio said: "This all-cash premium offer from Fortescue is an excellent outcome for our shareholders given the significant costs and risk associated with advancing the Cañariaco project.
“We believe this represents the right time to deliver a substantial non-dilutive success to Alta Copper shareholders and is consistent with our philosophy of delivering returns to shareholders at the appropriate point in the development plan of the Cañariaco project."
