First Quantum Minerals’ second-largest shareholder bought an additional C$287.5-million in shares of the Canadian metals producer that’s been hurt by the forced closure of its flagship copper mine in Panama.
China’s Jiangxi Copper bought 25.9-million First Quantum shares for C$11.10 each through a stock sale by the Canadian company, according to a Friday regulatory filing. The Canadian company raised C$1.55 billion last month through a bought deal offering that was part of refinancing measures to shore up its balance sheet following the shutdown of its Cobre Panama mine.
First Quantum rose 0.2% to C$12.88 at 11:02 a.m. in Toronto.
Jiangxi Copper has stepped in to support First Quantum after the Vancouver-based company was forced to close Cobre Panama in November on orders from the Central American government. The Chinese firm, which holds 18.4% of First Quantum, also agreed last week to buy $500-million for copper shipments from a First Quantum mine in Zambia.
Panama accounted for 78% of First Quantum’s operating profit in the first nine months of last year.