11:12 AM EDT, 04/05/2024 (MT Newswires) -- Capstone Copper ( CSCCF ) said Friday that funds controlled by Orion Resource Partners entered into a block agreement under which it has agreed to sell 62.4-million CHESS depository interests of Capstone in Australia at A$9.50 apiece for A$592.8 million in gross proceeds. The offering is expected to close April 9.

Capstone said it will not receive and proceeds from the offering. The net proceeds of the secondary offering will be paid directly to the selling shareholders.

National Bank of Canada said Capstone's announcement highlights strong support for the company throughout the Asia-Pacific Region.

The development may ultimately lead to further share support from the company's ASX-index inclusion, the bank said.

National Bank added that reduction in Orion's holding to 12% and subsequent 90-day lockup on future sales continue to diminish any overhang from the Orion block going forward.

The bank gave Capstone an outperform rating and a C$10.50 price target.

"We believe [Capstone] will be the name investors will pivot to under an improved backdrop for copper prices given several transformational growth projects in the pipeline and a management team in place to deliver its stated growth objectives," the bank said.

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