stockwatch.com FP/CP say First Quantum launches bought deal
2024-02-26 08:41 ET - In the News
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The Financial Post reports in its Saturday, Feb. 24, edition that First Quantum Minerals has announced that it will be raising about $1-billion (U.S.) through a bought deal offering. A Canadian Press dispatch to the Post reports that First Quantum intends to use the proceeds to pay off its debt and strengthen its liquidity. This move comes as the company fears that the closure of its Cobre Panama mine may pose a threat to its operations. 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 $11.10 (Canadian) 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. The company also said it was embarking on several other measures to shore up its finances. Last week, First Quantum revealed it is seeking at least $20-billion (U.S.) through international arbitration after the Panama government shut down its Cobre Panama mine. The miner said it continues to hope it can reach a satisfactory solution with the government of Panama regarding the future of Cobre Panama.