Lundin Mining Sells Neves-Corvo and Zinkgruvan for $1.52 Billion
Deal News | Dec 09, 2024 | PR Newswire Cision Lundin Mining Corporation
Lundin Mining Corporation, a diversified Canadian base metals mining company, announced a definitive agreement to sell its Neves-Corvo operation in Portugal and Zinkgruvan operation in Sweden to Boliden AB for up to $1.52 billion. The transaction comprises $1.37 billion in upfront cash, based on a cash-free, debt-free EV of $1.3 billion as of August 31, 2024, and up to $150 million in contingent payments. Boliden aims to acquire 100% of these mining operations, and the deal is expected to close by mid-2025, pending regulatory approvals. This strategic divestment will reinforce Lundin Mining’s balance sheet and support growth in the Vicuña District, aligning with their goal to become a major copper-focused mining company.
Sectors
- Mining
- Metals & Mining
- Corporate Finance
Geography
- Canada – Lundin Mining Corporation is based in Canada.
- Portugal – The location of the Neves-Corvo mining operation being sold.
- Sweden – The location of the Zinkgruvan mining operation being sold.
- South America – Mentioned as the focus area for Lundin Mining's growth strategy.
Industry
- Mining – The article discusses the sale of mining operations which are key components of the mining industry.
- Metals & Mining – Lundin Mining and Boliden are both involved in the extraction and production of base metals, particularly copper and zinc.
- Corporate Finance – The transaction involves significant financial considerations, including enterprise value assessments and contingent payments.
Financials
- $1.52 billion – Total consideration for the sale of Neves-Corvo and Zinkgruvan.
- $1.37 billion – Upfront cash consideration at the closing of the transaction.
- $150 million – Contingent cash consideration dependent on future copper and zinc prices.
- $1.3 billion – Enterprise value at the Lock-Box date (cash-free, debt-free).
- 5% – Annual interest rate accruing on the upfront cash consideration from August 31, 2024, to the closing date.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Lundin Mining Corporation | Target | Company | A Canadian-based diversified base metals mining company. |
| Boliden AB | Bidding Company | Company | A Swedish metals company acquiring the Neves-Corvo and Zinkgruvan operations from Lundin Mining. |
| Jack Lundin | CEO | People | President and CEO of Lundin Mining Corporation. |