The IGO Ltd (ASX: IGO) share price is sliding after the company confirmed it's in discussions to acquire one of the world's richest copper mines.
The exploration and mining company responded to rumours this morning, saying it's in exclusive talks to buy the CSA Copper Mine from Glencore.
But the potential acquisition hasn't excited the market. The IGO share price has tumbled 6.2% to trade at $11.49, at the time of writing.
Let's take a closer look at today's news from the $9 billion resources giant.
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IGO confirms more acquisition discussions
The IGO share price is struggling today after the company confirmed it is making yet another move to acquire a major Australian resource.
It's currently digging through the copper mine's books as part of acquisition discussions. In the meantime, IGO has warned investors not to get too excited just yet.
The company said it hasn't made any decisions and often partakes in acquisition talks.
IGO's confirmation of takeover discussions followed reporting by the Australian Financial Review claiming IGO was named the preferred bidder for the CSA Copper Mine.
Additionally, according to the publication, IGO is expected to undergo an equity raise to pay for it.
The mine, at Cobar in regional New South Wales, is reportedly worth upwards of $1 billion.
As of 31 December 2021, IGO had $570 million of cash and no debt.
The CSA mine produces around 50,000 tonnes of copper annually with average grades of 5% to12%. According to Glencore, that makes it one of the world's richest copper mines.
The news comes just days after Fortescue Metals Group Limited (ASX: FMG) boss Andrew 'Twiggy' Forrest gave the 'thumbs up' for IGO's proposed $1 billion acquisition of Western Areas Ltd (ASX: WSA). Forrest confirmed his intent to vote in favour.
Twiggy's investment vehicle, Tattarang, holds a 9.8% stake in the nickel producer.
IGO placed an all cash $3.36 per share offer for the company in December.
IGO share price snapshot
Today's dip has almost wiped the IGO share price gains for the 2022 calendar year.
The company's share price is now less than 1% higher than it was at the start of this year.
However, the exploration and mining company's stock has gained 74% over the last 12 months.
