TORONTO — First Quantum Minerals Ltd. said it will raise roughly US$1 billion through a bought deal offering and use the proceeds to repay debt and bolster its liquidity as it says its operations could be threatened by the closure of its Cobre Panamá mine.
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 C$11.10 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.
Earlier in the day on Wednesday, First Quantum revealed it’s seeking at least US$20 billion through international arbitration after the Panama government effectively shut down its copper mine in the country. The CEO of First Quantum Minerals Ltd. said arbitration is not the company’s first choice and that it continues to hope it can reach a satisfactory solution with the government of Panama regarding the future of Cobre Panamá.
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