First Quantum Minerals denies takeover talks

First Quantum Minerals said on Monday that it is not engaged in discussions regarding a takeover bid but is in talks about a potential sale of a minority interest in its Zambian copper assets.

Last Friday, Bloomberg reported that the Canadian miner, which owns Africa's bigger copper miner, was drawing preliminary takeover interest from global miners, including China's Jiangxi Copper Co.

The company noted the speculation and said: "First Quantum has not engaged in any discussions regarding a take-over bid or other change of control transaction and has no knowledge of potential take-over bids, change of control transactions or proposals."

It added that it will update the market as warranted.

The group also confirmed that discussions about a potential sale of its minority interest in its Zambian copper assets have occurred and are ongoing, although no deal has been agreed and there is no guarantee that one will be reached.

RBC Capital Markets analyst Sam Crittenden said a sale of a minority interest in the Zambian assets would make sense to provide First Quantum with additional liquidity during the Cobre Panama ramp-up and to reduce debt.