- Lundin Mining (TSX:LUN) and BHP have signed a C$4.5 billion deal to acquire all the outstanding shares in Filo (TSX:FIL)
- After the acquisition of Filo, the companies will form a 50-50 joint venture to hold the Filo del Sol project and Lundin Mining’s Josemaria project
- As part of the deal, the companies will pay $33 per share, representing a 12.2 per cent premium on Filo’s Thursday closing price
- Shares of Lundin Mining are down 1.62 per cent to $14.01 as of 11:49 am ET, while Filo’s shares are up 8.77 per cent to $32 as of 11:50 am ET
Lundin Mining (TSX:LUN) and BHP have signed a C$4.5 billion deal to acquire all of outstanding shares in Filo (TSX:FIL).
In a news release, it was revealed that after the acquisition of Filo, the companies will form a 50-50 joint venture to hold the Filo del Sol project and Lundin Mining’s Josemaria project.
As part of the deal, the companies will pay $33 per share, representing a 12.2 per cent premium on Filo’s Thursday closing price.
“This strategic transaction is the key to unlocking the enormous value that the Vicuña District represents,” Jack Lundin, CEO of Lundin Mining, said in a statement. “As we partner to acquire Filo del Sol, one of the world’s largest undeveloped copper-gold-silver deposits, with its true size yet to be defined, we are very excited about the future of the company and our role in developing this region.”
Other terms of the acquisition include BHP paying to Lundin Mining cash consideration of US$690 million as consideration for Lundin Mining contributing the Josemaria project to the partnership.
As such, the joint venture will create a long-term partnership between Lundin Mining and BHP to develop an emerging copper district with world-class potential that could support a globally ranked mining complex.
It is expected that the transaction will close in Q1 2025 with shareholder approval and other customary conditions.
Lundin Mining is a base metals mining company focused on metals mining with projects and operations in Argentina, Brazil, Chile, Portugal, Sweden and the United States, primarily producing copper, zinc, gold and nickel.
Filo is focused on its 10 per cent controlled Filo del Sol project, which is composed of two adjacent land holdings: the Filo del Sol property in San Juan Province, Argentina, and the Tamberias property in Region III, Chile.
Shares of Lundin Mining (TSX:LUN) are down 1.62 per cent to $14.01 as of 11:49 am ET, while Filo’s shares (TSX:FIL) are up 8.77 per cent to $32 as of 11:50 am ET.
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