Published: July 9, 2019 |

[Click image to enlarge]

Lundin Mining, a Canada-based metals mining company has closed the acquisition of a 100 percent ownership stake in the Chapada copper-gold mine from Yamana Gold.

Owned by Mineração Maracá Indústria e Comércio, the Chapada copper-gold mine is located in the State of Goiás, Brazil.

Lundin Mining President and CEO Marie Inkster: “The addition of Chapada further solidifies Lundin Mining’s position as a leading intermediate base metals producer. We look forward to establishing an excellent reputation in Brazil as we work closely with our new employees and stakeholders.

“Leveraging our technical expertise, base metals focus and financial strength, we believe further opportunities exist to create meaningful stakeholder value from this high-quality asset.”

Production at Chapada mine started in 2007, and the mine produced approximately 58.6kt of copper and 121koz of gold in 2018. It is expected to produce approximately 54,500 tonnes of copper and 100,000 ounces of gold in 2019.

CHAPADA COPPER MINE ACQUIRED FOR $800 MILLION

Lundin Mining has paid a total cash consideration of $800 million (£638 million) for the acquisition, funded by cash on hand and the company’s $550 million (£638 million) revolving credit facility. Yamana will also receive a contingent consideration of up to $125m (£99.8m) over five years if certain gold price thresholds are met.

In addition, it will be given a contingent consideration of $100m (£79.8m) on potential construction of a pyrite roaster.

Yamana retains a 2.0% net smelter return (NSR) royalty on gold production from the Suruca gold deposit in future.

The acquisition of Chapada copper mine was announced in April 2019. The sale is part of Yamana‘s effort to improve balance sheet and position itself as a dominant intermediate precious metals producer,

Lundin Mining is a diversified Canadian base metals mining company with operations in Brazil, Chile, Portugal, Sweden and the US, mainly producing copper, nickel and zinc.

The company also owns an indirect 24 percent equity stake in the Freeport Cobalt Oy business, which includes a cobalt refinery located in Kokkola, Finland.

Source: NS Energy

To stop by Lundin’s website, CLICK HERE

Be in-the-know when you’re on-the-go!