Australian miner Fortescue has agreed to acquire the remaining shares it does not own in Canada-listed Alta Copper, valuing the copper developer at C$139 million. The transaction strengthens Fortescue’s push into copper and supports its broader strategy focused on critical minerals.
The binding agreement outlines a cash offer
Fortescue announced it had entered a binding agreement to acquire the outstanding 64% of Alta Copper it does not already hold. The transaction will be completed through a Canadian plan of arrangement, subject to shareholder and court approvals.
Under the agreement, Alta Copper shareholders will receive C$1.40 per share in cash. The offer represents a 50% premium to the Company’s 30-day volume-weighted average price and a 100% premium to the VWAP before exclusive talks began in November.
Fortescue’s existing stake and structure
Fortescue currently owns about 36% of Alta Copper’s issued common shares. The remaining shares will be acquired through its wholly owned subsidiary, Nascent Exploration, once the transaction is completed.
The structure allows Fortescue to consolidate full ownership of Alta Copper. It also simplifies decision-making around development planning, exploration programs, and future capital allocation at the project level.
Alta Copper board backs the deal
Alta Copper’s board of directors and its special committee have unanimously recommended that shareholders vote in favour of the transaction. Their support followed a review process assessing value and certainty for shareholders.
In addition, directors, officers, and other shareholders holding about 12.5% of Alta Copper’s issued shares have signed voting support agreements. These parties have committed to backing the transaction at the upcoming shareholder meeting.
The Cañariaco Project anchors the acquisition
Alta Copper owns 100% of the Cañariaco copper project in northern Peru. The project sits within an emerging porphyry belt known for large-scale exploration and development potential.
Covering around 91 square kilometres, the project includes the Cañariaco Norte and Cañariaco Sur deposits. It also hosts the Quebrada Verde prospect, which remains an exploration focus within the broader tenure.
Mineral resource and project scale
The Cañariaco project hosts reported measured and indicated mineral resources of 1.1 billion tonnes. The average grade stands at 0.42% copper equivalent across these categories.
In addition, the project contains inferred resources of about 0.9 billion tonnes at 0.29% copper equivalent. A preliminary economic assessment completed in June last year outlined a long-life copper operation.
Strategic fit with Fortescue’s plans
Fortescue said the acquisition aligns with its strategy to expand its copper portfolio and exploration footprint. Copper remains a priority within the Company’s broader critical minerals focus.
The miner believes it is well-positioned to advance the Cañariaco project. It cited its established presence in Latin America since 2018 and its experience in permitting, technical studies, and community engagement.
Market response and share price focus
The announcement placed Fortescue shares in focus during trading. At the time of reporting, Fortescue Ltd shares were trading at $22.635, down 1.501% on the day.
Stock market screen showing Fortescue Ltd (ASX: FMG) trading data
Over the past 12 months, Fortescue shares have risen about 23%. This performance exceeded the S&P/ASX 200 Index, which recorded a 5% increase over the same period.
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Timeline and approval process
The transaction requires approval from Alta Copper shareholders at a meeting expected in January. Court approval and other customary closing conditions must also be satisfied.
Subject to these approvals, Fortescue expects the acquisition to close in the March quarter of 2026. Once completed, Fortescue plans further drilling and resource updates at Cañariaco under Australian reporting standards.
FAQs
- What is the Fortescue–Alta Copper transaction?
Fortescue Ltd has agreed to acquire the remaining 64% of Alta Copper Corp that it does not already own. The transaction values Alta Copper at approximately C$139 million and will be completed through a Canadian plan of arrangement.
- How much will Alta Copper shareholders receive?
Alta Copper shareholders will receive C$1.40 in cash per share under the terms of the agreement.
- Does the offer include a premium?
Yes. The offer represents a 50% premium to Alta Copper’s 30-day volume-weighted average price and a 100% premium to the VWAP before the start of exclusive negotiations.
- What approvals are required for the deal to proceed?
The transaction requires approval from Alta Copper shareholders at a special meeting. Court approval and other customary regulatory and closing conditions are also required.
- When is the acquisition expected to be completed?
Subject to approvals, the transaction is targeted to close in the March quarter of 2026.
- What asset underpins the acquisition?
The acquisition centres on the Cañariaco copper project in northern Peru, which Alta Copper wholly owns. The project includes the Cañariaco Norte and Cañariaco Sur deposits, as well as the Quebrada Verde prospect.
- Why is Fortescue acquiring Alta Copper?
The acquisition supports Fortescue’s strategy to expand its presence in critical minerals, with copper identified as a priority for long-term portfolio diversification.
- What is the size of the Cañariaco mineral resource?
The project hosts measured and indicated resources of 1.1 billion tonnes at 0.42% copper equivalent, along with inferred resources of 0.9 billion tonnes at 0.29% copper equivalent.
- Has Alta Copper’s board supported the deal?
Yes. Alta Copper’s board of directors and special committee have unanimously recommended that shareholders vote in favour of the transaction.
- How much of Alta Copper does Fortescue already own?
Before the transaction, Fortescue held approximately 36% of Alta Copper’s issued common shares.
