FIRST Quantum Minerals Limited (FQM) says it intends to list its Zambian depository receipts on the Lusaka Stock Exchange (LuSE) by the end of July.
Depository receipt is a negotiable financial instrument issued by a bank to represent a foreign company’s publicly traded securities. The depository receipt trades on a local stock exchange. It makes it easier to buy shares in foreign companies because the shares of the company do not have to leave the home state.
“First Quantum Minerals Limited, a global mining and metals company, is proud to announce its intention to list its Zambian depository receipts on the Lusaka Stock Exchange by July 2011,” the company said in a statement availed to the Mail yesterday.
“The listing is in recognition that Zambians are important stakeholders of First Quantum and creates another way for Zambians to identify with and participate in the growth of the company,” the statement read.
The statement says the company’s depository receipts have since been registered under the Securities and Exchange Commission for possible listing on the local bourse.
First Quantum’s common shares are listed on the Toronto Stock Exchange and on the London Stock Exchange. With this move, First Quantum becomes the first mining company to list on the LuSE.
The company, which owns 80 percent of Kansanshi mine in Solwezi in the North-Western Province, says the depository receipts will be listed on the local bourse and can be purchased only through Zambian stockbrokers by institutional and retail investors in Zambia.
“The depository receipts have been registered by the Securities and Exchange Commission of Zambia, and are expected to be listed on the LuSE and traded freely, like any other security listed on that exchange,” the statement added.
It says each depository receipt will represent a certain fraction of a common share of the company which will be determined prior to the listing.
The statement says the common shares underlying the depository receipts rank paripassu (on equal footing) with all other common shares of the company.
Renaissance Capital is acting as sole sponsoring broker of the listing, while the Bank of New York Mellon will act as depository in relation to the receipts.
It says First Quantum will carry out investor road shows in Zambia to engage with targeted audiences in a build-up to the listing.
The company says any potential investors are advised to exercise caution in relation to the listing and are advised to consult with their stockbroker, financial or legal advisor or other professional advisor before investing in the depository receipts.
First Quantum Minerals Ltd is a growing mining and metals company currently operating two mines and developing five projects worldwide.
The company currently produces London Metal Exchange grade “A” copper cathode, copper in concentrate, gold and sulphuric acid and is on track to become a significant nickel producer in 2012.
First Quantum’s current operations are the flag carrier Kansanshi Copper-Gold mine in Zambia and the Guelb Moghrein Copper-Gold mine in Mauritania.
[Zambia Daily Mail]