First Quantum Minerals (TSX: FM) is continuing its post-Panama garage sale, announcing on Thursday the sale of its Çayeli copper and zinc mine in Turkey to Cengiz Holding for $340 million in cash.
The deal for the underground operation, located on the Black Sea coast, is the latest move by the Toronto-based miner to shore up its balance sheet. First Quantum has been in a hurry to raise capital and reduce debt ever since the Panamanian government pulled the plug on its flagship Cobre Panama mine in late 2023, an event that wiped out a massive chunk of the company’s revenue overnight.
Under the terms of the agreement, First Quantum will receive $50 million as an advanced payment for the asset, with the remaining $290 million to be settled at closing, subject to certain adjustments.
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Çayeli in the fourth quarter produced 2,427 tonnes of copper and 909 tonnes of zinc, at an average C1 cash cost of $2.80 per pound. The mine was forecasted to produce 10,000 tonnes of copper and 4,000 tonnes of zinc in 2026 based on guidance midpoints.
The Çayeli divestiture follows a similar script to First Quantum’s recent $190 million sale of the Las Cruces mine in Spain. While Çayeli has been a reliable producer since 1994, it is a relatively small piece of the company’s global portfolio. By offloading these European and Middle Eastern assets, First Quantum is effectively streamlining its focus toward its larger, “tier-1” operations in Zambia and its ongoing (if complicated) interests in the Americas.
For Cengiz Holding, the acquisition is part of a massive spending spree in the Turkish mining sector. The industrial giant is rapidly consolidating its hold on the country’s mineral wealth. Just last week, Cengiz agreed to a much larger $1.5 billion deal to acquire an 80% stake in the Çöpler gold mine from SSR Mining.
That sale followed a catastrophic landslide at the Çöpler site in early 2024, which led SSR Mining to pivot its strategy entirely toward its assets in the Americas.
By picking up Çayeli, Cengiz is adding a well-established polymetallic producer to its stable. For First Quantum, the $340 million check provides a bit more breathing room as it continues to navigate the regulatory and financial fallout of its Panamanian exit.
The transaction is expected to close in the second or third quarter of 2026, pending the usual green light from Turkish regulatory authorities.
First Quantum last traded at $33.51 on the TSX.
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