The Investment Whisperer
  • Business
  • Politics
  • Investing
  • World
  • Business
  • Politics
  • Investing
  • World

The Investment Whisperer

Investing

Lundin Mining to Divest Neves-Corvo and Zinkgruvan Operations for US$1.52 Billion

by admin December 10, 2024
December 10, 2024
Lundin Mining to Divest Neves-Corvo and Zinkgruvan Operations for US$1.52 Billion

Lundin Mining (TSX:LUN,OTC Pink:LUNMF) has entered a definitive agreement to sell its Neves-Corvo operation in Portugal and Zinkgruvan operation in Sweden to Boliden (STO:BOL) for up to US$1.52 billion.

The sale, announced by the company on Monday (December 9), will see Boliden acquire full ownership of Somincor, the company operating Neves-Corvo, as well as Zinkgruvan Mining Aktiebolag and its associated entities.

Lundin expects to receive upfront cash consideration of US$1.37 billion at closing, based on financial conditions as of August 31, 2024. Interest will accrue at 5 percent annually until the closing date.

It will also receive up to US$150 million in contingent cash consideration once certain conditions are satisfied.

The contingent payments for the Neves-Corvo operation are linked to copper and zinc prices exceeding US$4.50 per pound and US$1.30 per pound, respectively, between 2025 and 2027.

For Zinkgruvan, the contingent payments are tied to zinc prices surpassing US$1.40 per pound during 2025 and 2026, provided that annual zinc production meets a minimum threshold of 135 million pounds.

Payments are capped at US$25 million annually, with a total maximum of US$50 million. Incremental revenue exceeding these thresholds will result in payments to Lundin capped at US$100 million over the period.

Lundin intends to use the proceeds to strengthen its balance sheet and prioritize its growth in the Vicuña District in South America. The company currently has operations and development projects in Argentina, Brazil, Chile and the US.

“It is an opportune time to optimize our portfolio through this divestiture as we drive towards becoming a top-tier copper-dominant mining company,” said CEO Jack Lundin in a press release.

Neves-Corvo and Zinkgruvan have been significant contributors to Lundin Mining’s growth as a multi-asset base metals producer. According to Lundin, the transition to Boliden will provide continuity for local stakeholders and employees.

Both companies anticipate completing the transaction by mid-2025.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

0
FacebookTwitterGoogle +Pinterest
previous post
TikTok says ban would cost U.S. small businesses and creators $1.3B in first month
next post
Completion of preclinical data package for RAD 402

Related Posts

Secondary Trading Notice

April 3, 2025

European Lithium Limited (ASX: EUR) – Reinstatement to...

March 5, 2024

Red Metal Resources Engages German Investor Awareness and...

November 21, 2024

World Copper Creates Technical Advisory Committee for Zonia...

May 14, 2024

Stock Trend Capital Announces Loan to eGOD Digital...

January 15, 2025

New Resource Booking

November 4, 2024

Warrego East Drilling Permitted as Takeover Action Underlines...

November 12, 2024

High Resolution Ground Magnetics Commences at 100% –...

March 4, 2025

R3D Secures Additional Funding

March 16, 2024

Lode Gold Shareholders Approve Plan of Arrangement for...

March 12, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Categories

    • Business (1,432)
    • Investing (3,523)
    • Politics (4,756)
    • World (4,659)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TheInvestmentWhisperer.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 TheInvestmentWhisperer.com | All Rights Reserved