Source: Lundin Mining Corp.
  • Lundin Mining Corp. (LUN) will buy a majority stake in Chile’s Caserones copper mine
  • The Canadian miner signed the deal for $950 million to expand its exposure to the red metal crucial for the green energy transition
  • Lundin intends to acquire 51 per cent of the issued and outstanding equity of SCM Minera Lumina Copper Chile
  • Lundin Mining (LUN) opened trading at C$8.10 per share

Lundin Mining Corp. (LUN) announced on Tuesday that it would buy a majority stake in Chile’s Caserones copper mine.

The Canadian miner’s stock hit a near three-week high after it signed the deal for $950 million to expand its exposure to the red metal crucial for the green energy transition.

Lundin intends to acquire 51 per cent of the issued and outstanding equity of SCM Minera Lumina Copper Chile, a wholly owned subsidiary of JX Nippon Mining & Metals Corp. which operates the Caserones copper-molybdenum mine.

This acquisition increases Lundin’s copper production by 50 per cent. The project’s processing capabilities offers conventional crush, grind, and flotation processing with a nominal capacity of 105 k tonnes per day (tpd), producing both copper in concentrates and molybdenum in concentrates, as well as a solvent extraction and electrowinning plant and leaching facilities for processing oxide and low-grade sulphide ore with a production capacity of 34.5 kt of cathode per year (96 tpd). In 2022, the concentrator plant produced 109.1 kt of copper in concentrate. In addition, 15.1 kt of copper cathodes and 3.1 kt of molybdenum in concentrate was produced.

The company’s CEO, Peter Rockandel commented that upon closing of the acquisition of Caserones, Lundin adds another long-life copper mine of material size and with significant growth potential to its portfolio.

“The Caserones team has achieved meaningful operational improvements in recent years, and we will work to unlock additional upside through our strong technical resources and existing presence in the region. The initial controlling interest increases our exposure to what we believe is a growing top-tier copper mining district. We retain the option to further increase our ownership over the next few years at an attractive price. The Acquisition further solidifies Lundin Mining’s position as a growing global producer of copper as the world shifts to a lower carbon future.”

Lundin Mining Corp. (LUN) is a diversified Canadian base metals mining company with operations in Brazil, Chile, Portugal, Sweden, and the United States of America, producing copper, zinc, gold, and nickel. Its material mineral properties include Candelaria, Chapada, Eagle, and Neves-Corvo. The majority of its revenue is from copper.

Lundin Mining (LUN) opened trading at C$8.10 per share.

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