Fortescue Ltd (ASX: FMG) shares are outperforming on Monday.
At the time of writing, the mining giant's shares are up slightly to $23.01.
This compares to a 0.5% decline by the ASX 200 index.
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What's going on with Fortescue shares today?
Investors have been buying the miner's shares after it made a big announcement relating to its copper ambitions.
According to the release, Fortescue has entered into a binding agreement to acquire Alta Copper Corp (TSX: ATCU).
The company revealed that it has agreed to acquire the remaining 64% of Alta Copper's issued and outstanding common shares that it does not already own through a Canadian Plan of Arrangement.
Alta Copper shareholders will receive cash consideration of C$1.40 per share, which represents a significant premium of 50% to the 30-day volume weighted average price (VWAP). It implies a total equity value for Alta Copper of C$139 million (A$152 million).
Fortescue notes that the directors of Alta Copper who are entitled to vote have unanimously recommended to shareholders that they vote in favour of the transaction.
In addition, the directors and officers of Alta Copper and other shareholders who hold in aggregate 12.5% of the shares on issue have entered into voting support agreements committing to vote in favour of the transaction.
The transaction is also subject to the approval by the British Columbia Supreme Court and the satisfaction of other closing conditions which are customary for a transaction of this nature. If everything goes to plan, the transaction is targeted to close in the March quarter of 2026.
What is Alta Copper?
Alta Copper owns 100% of the Cañariaco Copper Project in Northern Peru, which is within an emerging porphyry corridor that hosts several large exploration and development opportunities.
The Cañariaco Project comprises 91 square kilometres of highly prospective tenure and includes the Cañariaco Norte deposit, the Cañariaco Sur deposit, and the Quebrada Verde prospect.
Fortescue highlights that he Cañariaco Project has a reported mineral resource of 1.1 billion tonnes at 0.42% copper equivalent grade and 0.9 billion tonnes at 0.29% copper equivalent grade.
Commenting on the proposed deal, management said:
The Transaction is consistent with Fortescue's critical minerals strategy which has a focus on expanding the Company's copper portfolio and related exploration footprint. Fortescue is well placed to advance the Cañariaco Project relying on its presence in Latin America since 2018 and its well established technical, permitting and community engagement expertise. Following completion of the Transaction, Fortescue will apply its proven approach of working collaboratively with local and indigenous communities to ensure the responsible, long-term development of the Cañariaco Project.
