Lundin Mining (TSX: LUN) is evidently looking to expand its current copper holdings. The firm this morning announced that it has entered into a definitive agreement to acquire Josemaria Resources (TSX: JOSE), whose flagship asset is the Josemaria copper-gold project in Argentina.
The Josemaria copper-gold project is an advanced stage project that is currently working through regulatory approvals. The project is currently at the feasibility stage, and is expected to see commercial production commence within five years, with the mine expected to produce 130,000 tonnes of copper, 225,000 ounces of gold, and 1.0 million ounces of silver annually for roughly 19 years based on current estimates.
The firm is to be acquired for a total consideration of roughly C$625 million, in the form of both cash and shares. Shareholders can elect to be paid out in cash at a price of $1.60 per share, or to receive Lundin Mining shares at a ratio of 0.1487 Lundin shares per share held. The transaction will see a maximum cash outlay of $183 million. The sales figure is said to be a 31% premium to the closing price of Josemaria on Friday.
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The transaction is slated to close in the second quarter of 2022, following an approval by shareholders.
Lundin Mining last traded at $10.67 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
