China’s Jiangxi Copper takes additional C$287.5 million stake in FQM


China’s Jiangxi Copper, First Quantum Minerals’ second largest shareholder, has reportedly bought an additional C$287.5 million in shares.

This is according to a Bloomberg report seen by Zambia Monitor on Monday.

FQM, the Canadian metals producer that has been hurt by the forced closure of its flagship copper mine in Panama, recently denied a report by Reuters that it was in negotiation with the Chinese miner to sell part of its equity to stabilise its financial stability hurt by developments in Panama.

China’s Jiangxi Copper bought 25.9 million First Quantum shares for C$11.10 each through a stock sale by the Canadian company, according to a Friday regulatory filing.

Read more: FQM announces plan to layoff mine workers as it implements consolidation programme

The Canadian company raised C$1.55 billion last month through a bought deal offering that was part of refinancing measures to shore up its balance sheet following the shutdown of its Cobre Panama mine.

First Quantum share price rose 0.2 percent to C$12.88 at 11:02 a.m. in Toronto, Canada.

Jiangxi Copper has allegedly stepped in to support FQM after the Vancouver-based company was forced to close Cobre Panama in November on orders from the Central American government.

The Chinese firm, which holds 18.4 percent of FQM, also agreed last week to buy $500 million for copper shipments from a FQM mine in Zambia.

Panama accounted for 78 percent of First Quantum’s operating profit in the first nine months of last year.

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