Lundin Mining Corporation has announced a significant divestiture, agreeing to sell its Neves-Corvo operation in Portugal and Zinkgruvan operation in Sweden to Boliden AB for a total consideration of up to $1.52 billion. This strategic move is aimed at strengthening Lundin’s balance sheet and focusing on growth opportunities in South America
Details of the Transaction
Lundin Mining has signed a definitive agreement to sell its operations, which are crucial for its portfolio. The deal includes:
- Upfront Cash Payment: Lundin will receive $1.37 billion at closing, based on a cash-free and debt-free enterprise value of $1.3 billion as of August 31, 2024.
- Contingent Payments: Up to $150 million may be received based on the performance of copper and zinc prices over the next few years.
- No Shareholder Approval Required: The transaction does not need approval from Lundin’s shareholders, streamlining the process.
The completion of the sale is anticipated by mid-2025, subject to customary conditions and regulatory approvals. This includes merger control approvals from the EU Commission and necessary approvals from Swedish and Portuguese authorities.
