Lundin Mining (TSX: LUN) has reached a definitive agreement to further consolidate its presence in the premier Vicuña District of Chile. The company announced it will acquire an additional 5% equity interest in the Caserones copper-molybdenum mine, alongside a 30.9% interest in the nearby Los Helados project.
Total consideration for the transaction is US$215 million, payable to JX Advanced Metals Corporation and its affiliates.
This strategic move increases Lundin’s ownership in the Caserones operation to 75%, following its initial acquisition of a majority stake in 2023. The additional 5% stake in Caserones is projected to increase Lundin’s 2026 attributable copper production by approximately 6,500 to 7,000 tonnes, contributing immediately to free cash flow growth.
The 30.9% interest in Los Helados meanwhile represents an initial stake in the project for Lundin, with the remaining interest held by NGEx Minerals (TSX: NGEX). Beyond the direct equity increase, the deal includes a 0.62% net smelter return royalty on the Los Helados project.
The project consists of a significant copper-gold deposit located just 17 kilometers south of the Caserones mine, with an estimated 11 million tonnes of copper, 13.8 million ounces of gold and 147.7 million ounces of silver across all resource categories. The proximity of Los Helados to the existing Caserones infrastructure is also said to have synergistic opportunities. Management is currently evaluating scenarios to truck or convey high-grade mineralization from Los Helados to the Caserones processing plant, potentially optimizing the mine life and feed grade of the existing facility.
Jack Lundin, President and CEO of Lundin Mining, characterized the acquisition as a disciplined step toward scaling the company’s copper-dominant portfolio. “This investment increases our attributable production profile at an attractive acquisition price,” Lundin stated. He noted that the move is designed to enhance operational performance and drive long-term value creation within a high-growth mining district.
The acquisition will be funded through Lundin Mining’s recently expanded revolving credit facility. The transaction has received approval from the boards of both companies and is expected to close in April 2026, subject to customary regulatory approvals and closing conditions.
Lundin Mining last traded at $35.27 on the TSX.
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