SEATTLE (Scrap Monster): Lundin Mining announced that it has entered into a definitive agreement with Josemaria Resources to acquire all of its shares through a plan of arrangement for an implied equity value of approximately $485 million. The cash consideration will be financed with existing liquidity.
As per the agreement, Lundin Mining will fully acquire the Josemaria copper-gold project located in the San Juan province of Argentina, which is believed to be at an advanced stage of development, with a clear path to production. The acquisition is expected to position Lunding Mining as a major copper producer with a diversified portfolio of base metal assets. The acquired assets complements Lundin’s existing portfolio, in addition to adding a strong third pillar to its South American copper business.
Upon hitting production, Josemaria is expected to produce on average over 130,000 tonnes of copper, nearly 225,000 oz of gold and 1.0 million oz of silver annually over a 19-year mine life.
Peter Rockandel, President and CEO, Lundin Mining noted that the acquisition will lift the company as a major base metals producer with high-quality, low-cost copper exposure. It will drive the next phase of the company’s growth, he said.
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