First Quantum planning $1.44-billion share offering

First Quantum Minerals Ltd. plans to raise up to $1.44-billion (Canadian) to expand its mining operations and pay down debt.

The Vancouver-based miner is building its large Cobre Panama copper mine at a time when the price of the red metal is weak.

The company has about $6-billion (U.S.) in debt and expects to spend $1.4-billion developing projects this year, including two copper properties in Zambia and the Cobre Panama mine.

Royal Bank of Canada and Goldman Sachs are running the big share offering, which was expected to be priced overnight.

The banks have not already bought First Quantum's new shares, which means they will not be left with unwanted stock, such as when Silver Wheaton Corp. launched an $800-million offering in March. Silver Wheaton's underwriters ended up shouldering a loss when they failed to sell the miner's stock at the original price.

If First Quantum's equity offering is successful, it will be the largest in the mining industry this year. The offering is expected to close in early June.

It has been tough for mining companies to raise funds with commodity prices down for the fourth consecutive year. Copper is below $3 a pound amid lower demand and a surplus supply.