Vancouver-headquartered First Quantum Minerals Ltd. (TSX:FM) plans to acquire U.K.-based Kiwara plc for approximately US$260.2 million.
First Quantum will gain Kiwara's three main projects in Zambia: the Kalumbila cobalt-nickel-copper project, the Kawanga uranium project and the Kawako nickel project, all in northwestern Zambia.
First Quantum has six projects in Africa, including the Kansanshi open-pit copper-gold mine in northwestern Zambia. Employing approximately 2,500 people, Kansanshi produced 61,296 tonnes of copper and 25,350 ounces of gold in the third quarter ending September 30, 2009. Total sales from the mine, which is the company's main producer, rose to US$391.3 million from US$358.8 million in the period.
As part of the deal, Kiwara shareholders will receive 0.0085 First Quantum shares and $0.663 for each Kiwara share, giving a total value of approximately $1.326 per Kiwara share.
The deal represents a 41.5% premium to Kiwara's closing price on the AIM market on November 20 and a 35.5% premium to the volume-weighted average trading price for the past 20 trading days.
Approximately 76% of the issued shares held by Kiwara's major shareholders and directors have already voted in favour of the deal, which is expected to close by the end of January 2010.
First Quantum's share rose more than 6% to $80.11 by close of trading Monday following the announcement of the deal.
First Quantum's share price during the past week: between $75 and $75.94; 52-week high: $79.40; 52-week low: $12.75.