Lundin Mining to Acquire Majority Interest in Caserones Copper Mine in Chile

About this update from Lundin Mining Corporation

[{"type":"text","content":" TORONTO, March 27, 2023 /CNW/ - (TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation (\"Lundin Mining\" or the \"Company\") is pleased to announce it has entered into a binding purchase agreement with JX Nippon Mining & Metals Corporation and certain of its subsidiaries (collectively, \"JX\"), to acquire fifty-one percent (51%) of the issued and outstanding equity of SCM Minera Lumina Copper Chile (\"Lumina Copper\"), a wholly owned subsidiary of JX which operates the Caserones copper-molybdenum mine (\"Caserones\") located in Chile (the \"Acquisition\"). JX will receive upfront cash consideration from Lundin Mining of $800 million, and in addition, $150 million in deferred cash consideration will be payable by Lundin Mining in installments over a six-year period following the closing date. Lundin Mining will also have the right to acquire up to an additional 19% interest in Caserones for $350 million over a five-year period commencing on the first anniversary of the date of closing. Additional details are provided below. Lundin Mining will host a conference call and webcast at 8:00 am ET, 14:00 CET on March 28, 2023, to discuss the Acquisition. Call details are outlined at the end of this news release. Acquisition Rationale Aligned with strategic goals – delivers a large-scale, long-life copper operation with favorable cash flow generation, complementing Lundin Mining's existing operations and overall copper-dominant portfolio of high-quality base metal mines. Enhances copper production profile – increases exposure to a highly desired base metal and on a pro forma basis would have increased Lundin Mining's 2022 copper production by 50%1. This will further solidify Lundin Mining's position as a meaningful copper producer globally. Immediate free cash flow contribution – underpinned by competitive cash costs and modest capital expenditures, and significantly accretive to operating cash flow per share metrics. Continued balance sheet strength – remains a high priority for Lundin Mining, and financial leverage continues to be low in relation to internal targets and to comparable mining peers. The Company retains healthy liquidity headroom on its $1.75 billion revolving facility after accounting for the upfront cash consideration for the Acquisition. Upside opportunities – through expected operational improvements unde...

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