First Quantum Minerals Announces Sale of Cobre Las Cruces

Core Viewpoint - First Quantum Minerals Ltd. has announced a binding agreement to sell its Las Cruces mine in Spain for up to $190 million, including a profitability-linked earn-out provision, to Global Panduro, paving the way for the development of a polymetallic primary sulphide project [1][2] Transaction Summary - The transaction includes $45 million in cash at closing, a loan note of approximately $65 million, and up to $80 million in deferred payments tied to project development milestones [2] - Additionally, there is a contingent deferred earn-out payment tied to exit and liquidity events, amounting to 10% of proceeds above an agreed internal rate of return threshold [2] Regulatory and Closing Information - The transaction is subject to customary conditions and regulatory approvals, with an expected closing during the first half of 2026 [3] About Las Cruces - The Las Cruces site, located approximately 20 kilometers northwest of Seville, produced copper cathodes from 2009 to 2021 and completed tailings reprocessing from 2021 to 2023 [4] - An updated NI 43-101 Technical Report published in February 2024 outlines plans for a next-phase redevelopment via a new underground mine to produce copper, zinc, lead, and silver [4] About Resource Capital Funds - Resource Capital Funds is a group of private equity funds established in 1998, focusing on mining sector investments across various commodities and regions [5] - RCF has supported over 235 mining companies with projects in more than 55 countries [5] Advisors - BMO Capital Markets acted as the financial advisor, while Simmons & Simmons served as the legal advisor for First Quantum in this transaction [6] - Norton Rose Fulbright provided legal advisory services to Resource Capital Funds [6]