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A subsidiary of First Quantum Minerals Ltd. has signed to acquire Antares Minerals in a deal valued at about $460-million.

Vancouver-based First Quantum announced early Monday the cash and share purchase of all fully diluted shares of Antares is valued at about $6.35 a share, or $460-million.

Antares's principal asset is the wholly-owned Haquira project in southern Peru adjacent to Xstrata Copper's Las Bambas copper-gold project.

First Quantum says it is one of the world's major undeveloped copper deposits with excellent potential for the development of a large scale copper mine.

As part of the deal, Antares's 50-per-cent interest in the Rio Grande project in northwestern Argentina, will be spun out into a new exploration company, Regulus Resources Inc. together with $5-million in cash.

John Black, president and CEO of Antares, said the strategy of the six-year-old company has been to develop a mining project that can be sold to a major miner.

"The proposed transaction with First Quantum represents the culmination of our efforts over the past six years and the successful achievement of our goal," Mr. Black said.

"As we have stated before, the Haquira deposit represents one of the most attractive undeveloped copper projects in the world owned 100 per cent by a junior explorer. We believe that First Quantum has the experience, track record and financial capacity to develop Haquira into a world-class mine."

"Shareholders will also be able to participate in any future upside from our 50 per cent interest in the Rio Grande project through the distribution of shares in a new company formed to acquire that interest from Antares as part of this transaction."

Philip Pascall, chairman and chief executive officer of First Quantum, said the friendly deal is "another step in First Quantum's stated strategy of geographical diversification."

"Haquira is a project which we consider that, with our experience, we can add material value to during the process of bringing it to commercial production and then subsequently through cost effective operation. Haquira is a world class copper project and has the potential to significantly increase First Quantum's copper production profile."

Under the arrangement, Antares shareholders will have the option to receive cash or shares or any combination of cash and shares, subject to a cash limitation.

The board of directors of Antares has unanimously approved the transaction and recommends shareholders vote in favour of the deal.

First Quantum is a growing copper mining and metals company with operations in Zambia that include the Kansanshi open pit copper-gold mine, the Trident project, the Fishtie copper project and other assets.

In Mauritania, First Quantum operates the Guelb Moghrein copper-gold mine.

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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 28/03/24 3:59pm EDT.

SymbolName% changeLast
FM-T
First Quantum Minerals Ltd
+2.32%14.56
REG-X
Regulus Resources Inc
+2.16%1.42

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