Vancouver copper producer First Quantum Minerals Ltd. (TSX:FM) hopes to raise $300.6 million in a public offering of shares to strengthen its capital position and pay for its capital projects.
The company plans to sell 8.1 million shares at a price of $37 per share. The public offering will include a syndicate of underwriters led by Morgan Stanley and RBC Capital Markets. It also includes BMO Capital Markets, Scotia Capital Inc. and UBS Securities Canada.
The offering is expected to close April 6 and includes an over-allotment option where underwriters can buy an additional 1.2 million shares, which would boost the total gross proceeds to $345.7 million.
The company's copper sales rose 32.6% for the fourth quarter ending December 31, 2008, to $97.3 million from US$73.3 million, but it reported a net loss of US$491.6 million compared with a net profit of US$135.3 million in 2007's fourth quarter.
The net loss included a US$254.2 million asset impairment charge. Excluding that charge, net loss was US$237.4 million, due primarily to a significant decline in copper prices.
First Quantum's share price range during the past week: between $37.20 and $48.22; 52-week high: $95.39; 52-week low: $12.75.