First Quantum Minerals (TSE:FM) sank 1.89% to $21.25 after saying Tuesday it will buy Ross Beaty's Lumina Copper (CVE:LCC) in a deal valued at $470 million.
The cash and stock transaction gives the Canadian copper miner ownership of the world's largest copper-producing mine by annual output, Taca Taca in Argentina.
"Taca Taca will significantly add to First Quantum's development pipeline," First Quantum chief executive Philip Pascall said in a release.
"The acquisition of Lumina is another step in First Quantum's long-stated objective of geographical diversification through the acquisition of world class, early-stage copper assets," he said.
A 2012 mineral resource estimates there is 21.1 billion pounds of copper at Taca Taca, while total contained sulphide copper in the inferred resource category is estimated to be 7.6 billion pounds of copper at a 0.3% copper equivalent cut-off.
"This transaction provides Lumina shareholders with the option to retain exposure to Taca Taca's future development," Ross Beaty, Lumina's founder and largest shareholder, said in the release.
Lumina Copper, an enormously profitable venture, earned Beaty the nickname "the broken slot machine." The Vancouver mining financier also founded Pan American Silver, one of the world's largest primary silver producers. He is also known as a passionate nature conservationist.
