Industria
Lundin Mining Announces Closing of Acquisition of Josemaria Resources and Provides Update on Josemaria Project
Under the terms of the Arrangement, Josemaria Resources shareholders were provided the right to elect to receive 0.1487 of a common share of Lundin Mining (each whole share, a "Lundin Mining Share") per Josemaria Resources common share ("Josemaria Resources Share'") plus C$0.11 for each whole Lundin Mining share issued to such shareholder or C$1.60 in cash for each Josemaria Share or any combination thereof, subject to pro-ration of a total maximum cash consideration of approximately C$184.5 million and a total maximum of approximately 40 million Lundin Mining Shares.
Josemaria Resources Shares will be delisted from the TSX Exchange and Nasdaq Stockholm. An application will also be made for Josemaria Resources to cease to be a reporting issuer in the applicable jurisdictions.
As announced by Josemaria Resources on April 11, 2022 , the Mining Authority of San Juan , Argentina has approved the Environmental Social Impact Assessment for the Josemaria Project, marking a significant milestone in the project's permitting process. Lundin Mining and the Josemaria project team are working with the national and provincial authorities to progress the project through the next stages of development. Discussions regarding commercial agreements and securing of additional sectoral permits are ongoing and anticipated later this year prior to a definitive construction decision.
The Josemaria project is progressing through basic engineering with procurement of long-lead equipment, including securing key items of crushing and processing. Study work is ongoing, including updating of cost estimates to be reflective of current conditions and evaluation of potential scope changes compared to plans envisaged in the Josemaria Resources 2020 Feasibility Study . Lundin Mining aims to complete an updated Technical Report for the project in the fourth quarter of 2022. While this work has not yet concluded, the Company expects the initial capital expenditure estimate of the project to be greater than $4 billion . Effective post-closing, the Company intends to spend up to $300 million to advance the project ahead of a construction decision in the second half of 2022, including engineering, commitments for long lead items, preconstruction activities and drilling.
As part of the updated Technical Report, Lundin Mining plans to complete new Mineral Reserve and Resource estimates. Approximately 20,600 meters of drilling have been completed on the project since the most recent 2020 Josemaria Resources mineral estimates and 35,000 meters of additional drilling are planned to be completed ahead of the new estimates.
Lundin Mining is a diversified Canadian base metals mining company with operations and projects in Argentina , Brazil , Chile , Portugal , Sweden and the United States of America , primarily producing copper, zinc, gold and nickel.
The information in this release is subject to the disclosure requirements of Lundin Mining under the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below on April 28, 2022 at 12:01 Eastern Time .
CONTACT : Mark Turner , Vice President, Business Valuations and Investor Relations: +1 416 342 5565; Irina Kuznetsova , Manager, Investor Relations: +1 416 342 5583; Robert Eriksson, Investor Relations Sweden: +46 8 440 54 50