TORONTO, Canada

Canadian copper mining company Quadra FNX Mining Ltd announced yesterday it has agreed to be acquired by a Polish-based company in a deal valued at CDN$3.5 billion (US$3.45 billion; $297 billion) in cash.

The buyer, KGHM Polska Miedz SA, is the world’s ninth-largest producer of copper and third-largest producer of silver.

Under the arrangement, shareholders of Vancouver-based Quadra FNX will receive US$15 in cash for each common share of the company.

That represents a premium of approximately 41.3 per cent to the 20-day, volume-weighted average price of Quadra FNX’s common shares on the Toronto Stock Exchange as of Monday.

Paul Blythe, president and CEO of Quadra FNX, said Tuesday they are recommending shareholders to vote in favor of the deal.

“KGHM participated in the process Quadra FNX ran to identify a joint venture partner for Sierra Gorda (project in Chile) earlier this year,” Blythe said. “In recent weeks KGHM came forward with a proposal to acquire the company, which has resulted in the agreement we are announcing today.”

KGHM, which is listed on the Warsaw Stock Exchange and has a market capitalization of some US$8 billion, has said it intends to finance the purchase using existing cash on hand.,