Showing posts with label Lundin Mining. Show all posts
Showing posts with label Lundin Mining. Show all posts

Monday, November 5, 2012

Southern Hemisphere Mining completes US$5M placement at 47% premium

Southern Hemisphere Mining has completed the recently announced US$35 million farm-in agreement and aUS$5 million share placement with the C$3 billion Lundin Mining Corporation.

The two companies recently executed a deal that will see Lundin Mining spend up to US$35 million (A$34 million) on exploration at Southern Hemisphere’s flagship Llahuin Copper-Gold Project in Chile to earn a direct stake of up to 75% over a six-year period.

Lundin Mining has now also taken a strategic 11.5% stake in Southern Hemisphere by way of a US$5 million share placement at C$0.25 (A$0.25) per share on the TSX-V, representing a 47% premium to Southern Hemisphere’s current share price.

Importantly, the initial joint venture budget provides for an accelerated drilling campaign at Llahuin.

Lundin Mining is a diversified Canadian base metals miner with operations in Portugal, Sweden, Spain and Ireland, producing copper, zinc, lead and nickel.

The company’s development project pipeline includes an expansion at its Neves-Corvo mine in Portugal and an equity stake in the world class Tenke Fungurume copper/cobalt mine in the Democratic Republic of Congo, which is currently undergoing a major expansion.

Trevor Tennant, managing director, said the agreement would bring a host of benefits for the company and the Llahuin Project.

“This is a significant event for Southern Hemisphere. Lundin is a C$3 billion company and its extensive experience in exploration, mine development and mine operations, as well as its immense financial standing, brings major benefits and validates our work at the Llahuin Copper-Gold Project over the past 15 months.

“Our joint venture partnership with Lundin shows our shareholders a clear path forward with the Llahuin Project.

“The Llahuin joint venture with Lundin Mining is and will remain our key focus but we are also aware of other copper-gold opportunities within the Coquimbo Region of central Chile which may provide additional future opportunities for Southern Hemisphere.”

Friday, September 28, 2012

Lundin Mining in search of new acquisitions

Lundin Mining is seeking mine acquisitions in Europe, Canada, Mexico and South America, but not Russia.

The company wants to invest up about US $600 mln in zinc and copper mine acquisitions.

The company wants to boost its production after the company experienced various failed deals and mergers last year.

The company owns the Tenke-Fungurume copper-cobolt mine in the Democratic Republic of Congo.

Chief Executive Paul Conibear said "We are looking at copper and zinc mines that produce 30,000 to 70,000 tonnes of metal per year."

"We are going to be very disciplined, but when we find something for the right price, we will act quickly and aggressively."

Lundin Mining, listed in both Toronto and Stockholm, has up to 4 billion crowns ($604.05 million) to spend on acquisition, the paper said.

Early in 2011, Lundin agreed a $9 billion tie up with rival miner Inmet Mining.

But this fell apart after Equinox Minerals launched a hostile bid for Lundin. Equinox itself was taken over by Barrick Gold and Lundin failed to attract any new suitors and has since then been focusing on expanding its existing mines.

The Tenke project, which is operated by Freeport McMoRan, is on its way to total annual output of 195,000 tonnes of copper cathode. The expansion is expected to be completed in 2013.

Conibear said further investment could take production to close to 300,000 tonnes by 2015.

Lundin is also looking at expanding ore production at its Zinkgruvan mine in Sweden by up to 40 percent to 1.4-1.5 million tonnes a year from the current 1.1 million tonnes.

"We have had a very strong development at Zinkgruvan this year and production is at a record level," he said. "We hope to be able to make a decision on expansion at the end of the year."

At the Neves-Corvo mine in Portugal, Lundin is looking at spending $500 million over the next 5-6 years to boost production.

"Another alternative is for a smaller production increase with less risk," Conibear said, adding that decision would also be taken at the end of the year.

 

acquisitions, democratic republic of the congo, global, mining, canada, mexico, tenke project, mining, lundin mining