* Deal values FNX shr at $15.12, a 1.8 pct premium
* To have assets in Canada, U.S. and Chile
* Both Cos directors, officers lock shrs in favor of merger
* Combined co to have 2011 rev of $1.5 bln
* Sees production of 300 mln pounds copper in 2011
March 23 (Reuters) - Canadian copper miner Quadra Mining and its rival FNX Mining Co agreed to merge in a C$1.54 billion ($1.51 billion) all stock deal, creating a mid-sized base metal firm with assets in Canada, the United States and Chile.
Under the terms of the deal, each FNX share will be exchanged for 0.87 Quadra shares, valuing each FNX share at C$15.12, a premium of 2 percent over its Monday close of C$14.85.
"Quadra FNX will be strategically positioned in two of the world's greatest mining camps; the Cu-Ni precious metal Sudbury Mining Camp in Canada and the Atacama Cu-Mo-Au Porphyry Belt of northern Chile," FNX Chief Executive, Terry MacGibbon, said in a statement.
The new company, Quadra FNX, will have anticipated 2011 production of about 300 million pounds of copper, 150,000 ounces of precious metals, generating 2011 revenues of $1.5 billion, based on consensus analyst estimates, the companies said.
The merger has been approved by the boards of both companies and all directors and officers have agreed to lock up their shares in support of the merger, the companies said in a joint statement.
Quadra shareholders with own about 52 percent of the new company, while the rest will be owned by FNX.
The agreement includes a commitment by each of Quadra and FNX not to solicit alternative transactions to the merger, but each company has the right to match a competing offer should one arise.
The new company will be led by Paul Blythe, Quadra's current Chief Executive, while MacGibbon, will be the non-executive Chairman.
Quadra FNX's new board will comprise five directors from each of the current Quadra and FNX boards and a representative from State Grid International Development (SGID).
Earlier this month Quadra Mining and SGID -- a unit of China's largest utility company, State Grid Corp of China -- agreed to form a joint venture to help expand its Chilean operations and fund its $2 billion Sierra Gorda copper project.
The merger has a break up fee of C$40 million.
Shares of Quadra Mining closed at C$17.38 on the Toronto Stock Exchange. ($1=1.018 Canadian Dollar) (Reporting by Ashutosh Joshi in Bangalore; Editing by Savio D'Souza)
