TORONTO, Ontario, July 5, 2019 /CNW/ - (TSX: LUN; Nasdaq
Stockholm: LUMI) Lundin Mining Corporation ("Lundin
Mining" or the "Company") is pleased to announce the closing of the
acquisition of a 100% ownership stake in Mineração Maracá Indústria
e Comércio S/A, which owns the Chapada copper-gold mine located in
Brazil ("Chapada") from Yamana
Gold Inc. ("Yamana"), as previously announced on April 15, 2019 (the "Acquisition").
Marie Inkster, President and
CEO commented: "The addition of Chapada further
solidifies Lundin Mining's position as a leading intermediate base
metals producer. We look forward to establishing an excellent
reputation in Brazil as we work
closely with our new employees and stakeholders. Leveraging our
technical expertise, base metals focus and financial strength, we
believe further opportunities exist to create meaningful
stakeholder value from this high-quality asset."
Total cash consideration paid at closing by the Company was
US$800 million, funded by cash on
hand and the Company's $550 million
revolving credit facility. Yamana retains a 2.0% net smelter return
(NSR) royalty on future gold production from the Suruca gold
deposit, receives contingent consideration of up to US$125 million over five years if certain gold
price thresholds are met and contingent consideration of
US$100 million on potential
construction of a pyrite roaster.
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining
company with operations in Brazil,
Chile, Portugal, Sweden and the
United States of America, primarily producing copper, nickel
and zinc. In addition, Lundin Mining holds an indirect 24% equity
stake in the Freeport Cobalt Oy business, which includes a cobalt
refinery located in Kokkola, Finland.
The information in this release is subject to the disclosure
requirements of Lundin Mining under the EU Market Abuse Regulation.
The information was submitted for publication, through the agency
of the contact persons set out below on July
5, 2019 at 8:45 am Eastern
Time.
Cautionary Statement in Forward-Looking Information
Certain of the statements made and information contained herein,
other than statements of historical fact and historical
information, is "forward-looking information" within the meaning of
applicable Canadian securities laws. Forward-looking information
includes, but is not limited to, statements with respect to the
Company's plans and business strategy. Words such as "believe",
"contingent", "create", "expected", "further", "future", "growth",
"leading", "opportunities", and "potential" or variations of these
terms or similar terminology or statements that certain actions,
events or results will, could or may occur or be achieved are
intended to identify such forward-looking information. Although the
Company believes that the expectations reflected in the
forward-looking information contained herein are reasonable, these
statements by their nature involve risks and uncertainties, and are
not guarantees of future performance. Forward-looking information
is based on a number of assumptions concerning, among other things,
the Company's plans and business strategy and anticipated trends in
the Company's business, and subject to a variety of risks and
uncertainties. Assumptions include but are not limited to the
expectations and beliefs of management of the Company; the assumed
long term price of copper and gold; that the Company can access
financing, appropriate equipment and sufficient labour; and that
the political environment where the Company operates will continue
to support the development and operation of mining projects. Risks
include but are not limited to risks and uncertainties relating to
the Company's ability to integrate Chapada and achieve the
anticipated benefits of the Acquisition; risks associated with
operating in foreign countries; uncertain political and economic
environments; community activism, shareholder activism and risks
related to negative publicity with respect to the Company or the
mining industry in general; changes in laws, regulations or
policies including but not limited to those related to operations,
permitting and approvals, environmental management, labour, trade
relations, and transportation; risks associated with business
arrangements and partners over which the Company does not have full
control; risks associated with acquisitions and related integration
efforts; competition; development or mining results not being
consistent with the Company's expectations; estimates of future
production; operating and cash costs estimates; allocation of
resources and capital; litigation; uninsurable risks; volatility in
metal prices; the estimation of asset carrying values; funding
requirements and availability of financing; indebtedness; foreign
currency fluctuations; interest rate volatility; changes in the
Company's share price, and equity markets, in general; changing
taxation regimes; counterparty and credit risks; health and safety
risks; risks related to the environmental impact of the Company's
operations and products and management thereof; unavailable or
inaccessible infrastructure and risks related to ageing
infrastructure; risks inherent in mining including but not limited
to risks to the environment, industrial accidents, catastrophic
equipment failures, unusual or unexpected geological formations, or
unstable ground conditions; actual ore mined varying from estimates
of grade, tonnage, dilution and metallurgical and other
characteristics; ore processing efficiency; risks relating to
attracting and retaining of highly skilled employees; ability to
retain key personnel; the potential for and effects of labour
disputes or other unanticipated difficulties with or shortages of
labour or interruptions in production; the price and availability
of energy and key operating supplies or services; the inherent
uncertainty of exploration and development, and the potential for
unexpected costs and expenses; risks associated with the estimation
of mineral resources and mineral reserves and the geology, grade
and continuity of mineral deposits including but not limited to
models relating thereto; natural phenomena such as earthquakes,
flooding, and unusually severe weather; potential for the
allegation of fraud and corruption involving the Company, its
customers, suppliers or employees, or the allegation of improper or
discriminatory employment practices, or human rights violations;
security at the Company's operations; breach or compromise of key
information technology systems; materially increased or
unanticipated reclamation obligations; risks related to mine
closure activities; risks related to closed and historical sites;
title risk and the potential of undetected encumbrances; risks
associated with the structural stability of waste rock dumps or
tailings storage facilities; and additional risks disclosed in
filings made by the Company with Canadian securities regulatory
authorities, which are available on SEDAR at
www.sedar.com under the Company's profile. There can be no
assurance that the Acquisition will achieve the anticipated
benefits. Readers are cautioned that the foregoing list is not
exhaustive of all assumptions and risk factors which may have been
used. Should one or more of these risks and uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those described in
forward-looking information. Accordingly, readers should not place
undue reliance on forward-looking information. The forward-looking
information contained herein speaks only as of the date of this
news release. The Company does not undertake to update such
forward-looking information unless required under applicable
laws.
For further information: Mark
Turner, Director, Business Valuations and Investor
Relations: +1 416 342 5565; Brandon
Throop, Manager, Investor Relations: +1 416 342 5583;
Robert Eriksson, Investor Relations
Sweden: +46 8 440 54 50