The Fortescue Ltd (ASX: FMG) share price is in focus after announcing its plan to acquire the remaining 64% of Alta Copper Corp for C$139 million, offering shareholders a 50% premium to Alta Copper's recent 30-day VWAP. This strategic move expands Fortescue's copper portfolio with the large-scale Cañariaco Project in Peru.
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What did Fortescue report?
- Binding agreement to acquire 64% of Alta Copper Corp not already owned
- Cash offer of C$1.40 per Alta Copper share, representing a 50% premium to 30-day VWAP
- Total Alta Copper equity value of C$139 million implied
- Alta Copper Board and 12.5% of shareholders have entered support agreements
- Cañariaco Project mineral resource: 1.1 billion tonnes at 0.42% copper equivalent (Measured & Indicated)
What else do investors need to know?
Fortescue's proposed acquisition aligns with its strategy to expand its presence in critical minerals, notably copper, supporting the company's long-term diversification. The deal will be completed via a Canadian Plan of Arrangement, needing approval from Alta Copper shareholders and regulatory authorities, with closure expected in Q1 2026.
Alta Copper's Cañariaco Project in Peru includes substantial copper deposits, and a 2024 preliminary economic assessment indicated strong potential for a long-life operation. Fortescue is leveraging its Latin American experience and technical capability to advance the project once the transaction completes.
What's next for Fortescue?
Looking ahead, Fortescue plans to carry out additional exploration and drilling at the Cañariaco Project to update mineral resources in line with the JORC Code. The company will use its established approach to community engagement and local partnerships, aiming for sustainable and responsible resource development.
Completion of the transaction would strengthen Fortescue's copper growth options, with the company targeting to bring its reporting in line with Australian standards within three years.
Fortescue share price snapshot
Over the past 12 months, Fortescue shares have risen 23%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has increased 5% over the same period.
