Another junior mining name is leaving the market. Alta Copper (TSX: ATCU) has entered into a definitive agreement with Fortescue Ltd, which will see the latter acquire the remaining interest in Alta Copper that it does not already own.
Prior to the arrangement, Fortescue held a 35.7% interest in Alta Copper.
The arrangement will see Alta acquired at a valuation of C$138.8 million on a fully diluted basis, with shareholders of Alta Copper set to receive $1.40 in cash for each share of Alta Copper currently held. The figure is said to represent a 50% premium to the 30-day volume weighted average price of Alta Copper as of December 12, and a 100% premium to the 30-day volume weighted average price of Alta Copper for the period ended November 7, which was the last day before exclusive negotiations began between the two parties.
Funding of the transaction is to come from existing cash reserves held by Fortescue, with no funding round required to complete the acquisition.
“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,” commented Giulio Bonifacio, CEO of Alta Copper.
The transaction remains subject to shareholders and regulatory approvals. Directors and officers of Alta Copper, along with certain shareholders representing a combined 12.48% ownership, have entered into voting support agreements in connection with the transaction.
The transaction is expectected to close in February 2026. A $3.0 million termination fee is in play in connection with the arrangement.
Alta Copper is currently advancing the development of their wholly owned Canariaco copper project in Peru. The project has a current resource estimate of 9.3 billion pounds of copper measured and indicated, and a further 2.7 billion pounds of copper in the inferred category.
A preliminary economic assessment conducted in 2024 identified a net present value of $4.0 billion for the project at $5.00 copper, which was based on an operation that would produce 294 million pounds of copper annually over a 27 year life of mine.
Alta Copper last traded at $1.22 on the TSX.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
