Vancouver’s First Quantum Minerals Ltd. (TSX:FM) said Tuesday that it is selling its $653 million stake in an Australian-based, Zambia-focused exploration firm.
First Quantum said in a release that it would use proceeds from the sale of 114,132,300 common shares of Equinox Minerals Ltd. to advance the three significant development projects it has underway. Equinox owns and operates the large-scale Lumwana copper mine in Zambia.
First Quantum owns a 16% interest in Equinox and owns the Kansanshi copper-gold mine adjacent to Equinox’s mine. The two companies are reportedly not active partners.
First Quantum said that proceeds from the sale of its Equinox shares would help it advance:
As it backs out of Zambia, First Quantum is making its first steps into South America, by acquiring Antares Minerals Inc., owner of the Haquira copper deposit in Peru, for $460 million.
As well, First Quantum continues to battle with Zambia’s neighbour, the Democratic Republic of Congo over rights to two of First Quantum’s exploration projects in that country (See “First Quantum in-country assets ineligible for Congo damages decision: tribunal ” – BIV Business Today; October 27).
First Quantum’s share price range during the past week: between $88.79 and $95.36; 52-week high: $100.32; 52-week low: $48.20.