Shares in Atalaya Mining Copper (LSE:ATYM, TSX:AYM) fell 8% to 943p after Trafigura sold 14 million shares in the copper producer through a secondary placing, raising approximately £132 million.
The placing was priced at 945p per share and conducted via JP Morgan SE, acting as sole global coordinator and bookrunner. Atalaya Mining did not receive any proceeds from the transaction.
Following settlement, Trafigura will retain a 10.9% stake in the company.
The remaining shares held by the commodities trading group will be subject to a 60-day lock-up, with limited exceptions and subject to J.P. Morgan’s consent.
The sale, announced on 3 February and completed a day later, marks a significant reduction in Trafigura’s holding and weighed on Atalaya’s share price in early trading.
Spain-focused copper producer with flagship project in Andalucía
Atalaya is a European mining company primarily engaged in the production of copper, with operations centred on its flagship Proyecto Riotinto in southern Spain.
Riotinto is a large open-pit copper mine located in the province of Huelva, Andalucía. It was brought back into commercial production by Atalaya in 2015 following decades of inactivity under previous operators.
The site has since been developed into a stable and scalable copper operation with annual output typically in the range of 50,000 to 60,000 tonnes.
In addition to Riotinto, Atalaya holds interests in other base metal exploration projects, including the Proyecto Touro in north-western Spain, which remains at the permitting stage.