Australia’s Fortescue (ASX: FMG) has agreed to acquire Peru-focused explorer Alta Copper (TSX: ATCU; US-OTC: DNCUD) in an all-cash transaction valued at C$139 million (about $101 million), marking another step in the miner’s strategy to diversify beyond iron ore and build exposure to copper.
Under the agreement, Fortescue’s wholly owned subsidiary Nascent Exploration will purchase the roughly 64% of Alta it does not already own, offering C$1.40 per share in cash. The bid represents a 50% premium to Alta’s 30-day volume-weighted average price through Monday and will be funded from Fortescue’s existing cash reserves.
The deal would give Fortescue full control of the Cañariaco copper project in northern Peru, one of the largest undeveloped copper assets in the Americas not held by a major producer. The acquisition comes as global demand for copper accelerates, driven by electrification, renewable energy, and grid expansion. BHP chief executive Mike Henry has forecast that copper demand could rise by about 70% by mid-century.
Alta shares, which have climbed nearly 60% over the past month, were trading at C$1.38 in early Toronto trading on Tuesday. Fortescue shares fell 2.8% to A$22.10 in Sydney, valuing the company at roughly A$68 billion ($46 billion).
A major undeveloped copper asset
Based in Vancouver, Alta Copper is focused on advancing the Cañariaco project, located roughly 700 kilometres northwest of Lima. The 91-square-kilometre land package hosts the Cañariaco Norte and Cañariaco Sur deposits, as well as the Quebrada Verde prospect.
According to company disclosures, Cañariaco contains measured and indicated resources of about 1.1 billion tonnes grading 0.39% copper, with by-products of gold and silver, for contained metal of roughly 9.3 billion pounds of copper. An additional 401.6 million tonnes are classified as inferred resources.
Alta has previously acknowledged that moving Cañariaco through Peru’s lengthy permitting process and extensive community engagement requirements would require substantial capital. Selling to Fortescue allows shareholders to crystallize value now without taking on further financing or execution risk.
“This all-cash premium offer from Fortescue is an excellent outcome for our shareholders given the significant costs and risks associated with advancing the Cañariaco project,” Alta chief executive Giulio Bonifacio said. “We believe this is the right time to deliver meaningful, non-dilutive value to Alta Copper shareholders.”
Fortescue’s copper ambitions
Fortescue has been active in Latin America since 2018 and says its experience in large-scale project development, permitting, and community relations positions it well to advance Cañariaco responsibly over the long term. The company said it intends to work closely with local and Indigenous communities as development progresses.
The transaction is subject to customary conditions, including court, regulatory, and shareholder approvals, and is expected to close in February. Alta shareholders are scheduled to vote on the deal at a meeting on Jan. 26. Following completion, Alta’s shares would be delisted from the Toronto Stock Exchange.
The agreement includes standard deal protections, including a right for Fortescue to match competing offers. Alta would be required to pay a C$3 million termination fee under certain circumstances.
Alta’s board of directors and a special committee have unanimously recommended that shareholders approve the transaction. Fortescue currently owns about 36% of Alta’s outstanding shares, equivalent to roughly 33.6 million shares.
