Lundin Mining Corp has agreed to acquire Josemaría Resources Inc a copper and gold project in San Juan Province, Argentina, for around US$483 million.
The acquisition will expand Lundin's copper mining operations in South America, with projected average annual production of 130,000 tons over the Josemaría mine's 19-year life, Lundin said Monday in a statement.
Production should start in five years. Miners and investors are optimistic about copper's prospects because of its crucial role in global decarbonisation efforts.
"The world-class Josemaria project is a unique opportunity at an advanced stage with a clear path to production. With Josemaria, Lundin Mining positions itself as a major copper producer with a diversified portfolio of high-quality, long-life base metal assets.
"The acquisition of the Josemaría project complements Lundin Mining's existing portfolio of high-quality mines and underscores our focus on disciplined copper-focused growth," said president and CEO Peter Rockandel.
The share and cash purchase represents a 29 percent premium over Josemaría's average trading price in Toronto in the 10 days to December 17, Lundin said.
by Dylan Griffiths, Bloomberg