First Quantum Minerals Ltd. (TSX:FM,LSE:FQM) and Lumina Copper Corp. (TSXV:LCC) have signed a definitive agreement pursuant to which First Quantum will acquire all outstanding securities of Lumina through a court-approved plan of arrangement. Based on the consideration, the total value for 100% of the fully diluted common shares of Lumina is roughly $470 million. Currently, First Quantum owns 2.5 million of Lumina’s outstanding common shares.

As quoted in the press release:

Lumina is the 100% owner of the Taca Taca copper deposit located in the Puna region of Salta Province in northwest Argentina, approximately 120 kilometres east of the Escondida, the world’s largest producing copper mine. Taca Taca currently has a reported National Instrument 43-101 compliant indicated mineral resource estimate of approximately 21.15 billion pounds of copper (9.6 million tonnes of copper) contained in 2.17 billion tonnes grading 0.44% copper, 0.08g/t gold and 0.013% molybdenum (0.57% copper equivalent) and an inferred mineral resource estimate of approximately 7.55 billion pounds of copper (3.4 million tonnes of copper) contained in 921 million tonnes grading 0.37% copper, 0.05g/t gold and 0.012% molybdenum (0.47% copper equivalent), using a 0.3% copper equivalent cut-off.(1) These estimates are defined by 148,000 metres of drilling. The deposit remains open in some areas to depth and along the southern boundary of the northeastern limb.

First Quantum CEO, Philip Pascall, said:

The acquisition of Lumina is another step in First Quantum’s long-stated objective of geographical diversification through the acquisition of world class, early-stage copper assets. Taca Taca will significantly add to First Quantum’s development pipeline and is at the stage where we can apply our resources and development expertise to realize its full potential and further add to First Quantum’s copper production profile. Once the acquisition of Lumina has been completed we will immediately review the Taca Taca project to determine the most efficient and economical timing for its development in the context of the projects that we are currently developing.

Click here to read the First Quantum Minerals Ltd. (TSX:FM) press release

See this press release on Marketwire