CA - Lundin Mining buys majority stake in Chilean copper mine in $950M deal

2023-03-28 08:22:48 ET

Lundin Mining ( OTCPK:LUNMF ) said Monday it agreed to acquire a 51% stake in Chile's Caserones copper mine from JX Nippon Mining & Metals for $950M.

Under the deal terms, Lundin Mining ( OTCPK:LUNMF ) would make an $800M upfront cash payment and $150M in installments over six years, and would have the right to acquire up to an additional 19% interest in Caserones for $350M over a five-year period.

The company said the acquisition would deliver a large-scale, long-life copper operation with favorable cash flow generation, complementing its existing operations and overall copper-dominant portfolio of high-quality base metal mines.

The Caserones mine's production of copper concentrate has stabilized at ~100K metric tons/year in recent years.

Lundin Mining ( OTCPK:LUNMF ) is a growth story, with a solid pipeline of projects in development, in particular its recently acquired Josemaria project, GoldStreetBets Research writes in an analysis published on Seeking Alpha .

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