Lundin Mining (TSX:LUN,OTC Pink:LUNMF) has entered a definitive settlement to promote its Neves-Corvo operation in Portugal and Zinkgruvan operation in Sweden to Boliden (STO:BOL) for as much as US$1.52 billion.
The sale, introduced by the corporate on Monday (December 9), will see Boliden purchase full possession of Somincor, the corporate working Neves-Corvo, in addition to Zinkgruvan Mining Aktiebolag and its related entities.
Lundin expects to obtain upfront money consideration of US$1.37 billion at closing, primarily based on monetary circumstances as of August 31, 2024. Curiosity will accrue at 5 % yearly till the cut-off date.
It’ll additionally obtain as much as US$150 million in contingent money consideration as soon as sure circumstances are happy.
The contingent funds for the Neves-Corvo operation are linked to copper and zinc costs exceeding US$4.50 per pound and US$1.30 per pound, respectively, between 2025 and 2027.
For Zinkgruvan, the contingent funds are tied to zinc costs surpassing US$1.40 per pound throughout 2025 and 2026, offered that annual zinc manufacturing meets a minimal threshold of 135 million kilos.
Funds are capped at US$25 million yearly, with a complete most of US$50 million. Incremental income exceeding these thresholds will end in funds to Lundin capped at US$100 million over the interval.
Lundin intends to make use of the proceeds to strengthen its steadiness sheet and prioritize its progress within the Vicuña District in South America. The corporate presently has operations and growth initiatives in Argentina, Brazil, Chile and the US.
“It’s an opportune time to optimize our portfolio by means of this divestiture as we drive in the direction of turning into a top-tier copper-dominant mining firm,” stated CEO Jack Lundin in a press launch.
Neves-Corvo and Zinkgruvan have been important contributors to Lundin Mining’s progress as a multi-asset base metals producer. In keeping with Lundin, the transition to Boliden will present continuity for native stakeholders and workers.
Each firms anticipate finishing the transaction by mid-2025.
Do not forget to observe us @INN_Resource for real-time information updates!
Securities Disclosure: I, Giann Liguid, maintain no direct funding curiosity in any firm talked about on this article.
