First Quantum Sells Spanish Copper Mine for up to $190 Million

2025-12-24 companies

Toronto, Tuesday, 23 December 2025.
First Quantum divests its Spanish operation for up to $190 million, securing immediate cash while retaining upside potential through performance-linked payments in this strategic portfolio realignment.

Structuring the Deal

Toronto-based First Quantum Minerals Ltd. (TSX: FM) announced on December 23, 2025, that it has entered a binding agreement to sell its Spanish subsidiary, Cobre Las Cruces S.A.U., to Global Panduro, S.L.U. [1]. The transaction involves a total consideration of up to $190 million, structured to provide First Quantum with immediate capital while maintaining a stake in the project’s future success [1]. Under the terms of the agreement, Global Panduro will pay $45 million in cash at closing, supplemented by an approximately $65 million loan note [1]. Additionally, the deal includes up to $80 million in deferred payments contingent upon meeting specific project development milestones, as well as a profitability-linked earn-out of 10% on proceeds exceeding an agreed internal rate of return threshold [1].

Asset Transition and Timeline

The Las Cruces mining complex, located approximately 20 kilometers northwest of Seville, has been a key asset for First Quantum, producing copper cathodes from 2009 until 2021 before transitioning to tailings reprocessing between 2021 and 2023 [1]. In February 2024, the company published plans to redevelop the site into a new underground mine designed to feed a polymetallic refinery [1]. This sale effectively transfers the responsibility for this next phase of development to Global Panduro. The transaction is expected to close in the first half of 2026, subject to customary conditions [1]. BMO Capital Markets and Simmons & Simmons acted as financial and legal advisors to First Quantum, respectively, while Norton Rose Fulbright advised Resource Capital Funds (RCF) in connection with the transaction [1].

Strategic Context and Market Performance

This divestiture occurs as First Quantum recalibrates its portfolio following significant operational shifts, most notably the closure of its flagship Cobre Panama mine in November 2023, which had been a major contributor to global copper supply [3]. Consequently, the company’s growth strategy has increasingly focused on its Zambian copper and nickel operations [2]. While First Quantum is seeking a long-term partner for its Zambian assets, CFO Ryan MacWilliam has stated that the company is taking a cautious approach, prioritizing a durable 25-year arrangement over a quick sale [2].

Sources

Mining Divestiture