Jiangxi Copper buys $212 million of First Quantum shares

First Quantum in alleged talks with Jiangxi over Zambian mines

The Sentinel open-pit copper mine. (Image courtesy of First Quantum Minerals.)

First Quantum Minerals Ltd.’s second-largest shareholder bought an additional C$287.5 million ($212 million) in shares of the Canadian metals producer that’s been hurt by the forced closure of its flagship copper mine in Panama.

China’s Jiangxi Copper Co. bought 25.9 million First Quantum shares for C$11.10 each through a stock sale by the Canadian company, according to a Friday regulatory filing. The Canadian company raised C$1.55 billion last month through a bought deal offering that was part of refinancing measures to shore up its balance sheet following the shutdown of its Cobre Panama mine.

First Quantum rose 0.2% to C$12.88 at 11:02 a.m. in Toronto.

Jiangxi Copper has stepped in to support First Quantum after the Vancouver-based company was forced to close Cobre Panama in November on orders from the Central American government. The Chinese firm, which holds 18.4% of First Quantum, also agreed last week to buy $500 million for copper shipments from a First Quantum mine in Zambia.

Panama accounted for 78% of First Quantum’s operating profit in the first nine months of last year.