Lundin Mining Finalizes Joint Acquisition of Filo with BHP
Deal News | Jan 15, 2025 | PR Newswire Cision Lundin Mining Corporation
Lundin Mining Corporation has announced the completion of a joint acquisition of Filo Corp in collaboration with BHP Investments Canada Inc. The transaction, named the 'Filo Acquisition', coincides with the formation of Vicuña Corp, a 50/50 joint venture between the two companies that will oversee the development of the Filo del Sol (FDS) and Josemaria projects. As part of the agreement, BHP paid Lundin Mining $690 million for a 50% share in the Josemaria project. Vicuña Corp aims to create a strategic alliance to develop a significant copper mining district, leveraging economies of scale and strategic expansion opportunities. Lundin Mining's financial commitment to the Filo Acquisition amounted to approximately C$877.8 million in cash along with the issuance of additional shares, representing an 11% dilution for its stakeholders. BHP contributed C$2.0 billion in cash toward its share. The management of Vicuña Corp will be handled through a joint board with figures from both companies, including Jack Lundin and Dave Dicaire spearheading operations. The district planning involves strategic drilling and exploration, anticipating a mineral resource estimate by mid-2025. This partnership and the creation of Vicuña Corp highlight a significant strategic expansion for both companies in a growing copper market.
Sectors
- Mining
- Metals & Minerals
- Joint Ventures
Geography
- Canada – Lundin Mining Corporation, one of the main participants, is a Canadian company and the transaction involves Canadian interests.
- Argentina – The location of the mining projects involved, specifically the Josemaria and Filo del Sol projects, which are situated in Argentina.
- Sweden – Lundin Mining is also listed on the Nasdaq Stockholm, indicating Swedish financial interest and involvement.
Industry
- Mining – The article discusses activities related to the mining and development of copper extraction projects, including the acquisition of a mining asset and the creation of a joint venture for mining operations.
- Metals & Minerals – The article involves companies focused on the production and development of copper and other base metals, which fall under the broader metals and minerals industry.
- Joint Ventures – The formation of a joint venture, Vicuña Corp, for the purpose of managing and developing mining assets, is a central theme of the article.
Financials
- US$690 million – The cash consideration paid by BHP to Lundin Mining for a 50% interest in the Josemaria project.
- C$4.0 billion – The total consideration for the joint acquisition of Filo Corp, excluding existing shares.
- C$877.8 million – Lundin Mining's share of the consideration for the Filo Acquisition.
- C$2.0 billion – BHP's cash consideration for its interest in Filo at C$33.00 per share.
- $312 million – The forecasted capital expenditures for the Joint Arrangement in 2025.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Lundin Mining Corporation | Acquiring Company | Company | A Canadian base metals mining company involved in the acquisition and joint venture. |
| BHP Investments Canada Inc. | Acquiring Company | Company | The Canadian subsidiary of BHP involved in the joint acquisition and strategic partnership. |
| Filo Corp. | Target Company | Company | The mining company being acquired by Lundin Mining and BHP. |
| Vicuña Corp. | Joint Venture Company | Company | Newly formed joint venture company to manage the projects in the copper district. |
| Jack Lundin | President & CEO of Lundin Mining | Person | Leader overseeing the joint venture and strategic developments within Lundin Mining. |
| Dave Dicaire | General Manager of Vicuña Corp. | Person | Responsible for the operations and management of Vicuña Corp with extensive mining project experience. |