By Robb M. Stewart


Australian iron ore producer Fortescue Metals Group has exercised a pre-emptive right to maintain a 25% stake in Candente Copper, a Canadian company developing a copper-project in Peru.

Candente on Wednesday said that a wholly-owned subsidiary of Fortescue subscribed for almost 2 million shares for a total purchase price of 357,120 Canadian dollars ($264,947).

The preemptive right was exercised by the mining company following plans by Candente for a private placement of about 2.8 million shares with Whittle Equity at C$0.18 each, raising gross proceeds of C$500,000. Fortescue agreed to buy shares at the same C$0.18 apiece.

Candente said the placements with Whittle and Fortescue are subject to the approval of the Toronto Stock Exchange and expected to occur on or before May 26.

Shares of Candente, which is changing its name to Alta Copper, last closed at C$0.13, down 7.1% so far this year.


Write to Robb M. Stewart at robb.stewart@wsj.com


(END) Dow Jones Newswires

05-17-23 0837ET