Lundin Mining (TSX: LUN) is acquiring Josemaria Resources (TSX: JOSE) for about $625 million for its namesake copper-gold project in San Juan, Argentina.
The Canadian miner is acquiring the company for $1.60 a share in cash and stock, a 29% premium to Josemaria’s 10-day volume weighted average price on the TSX. Josemaria shareholders will be able to choose to receive payment in cash or 0.1487 Lundin shares for each existing share they own in the company.
“In our view this project is a unique and scarce opportunity,” Lundin Mining CEO Peter Rockandel said during a conference call with analysts and investors on December 20.
“Lundin Mining has been following Josemaria’s advancements into a world class ore body for a considerable period of time.”
The acquisition would increase Lundin Mining’s copper and gold production by 50% and 140% respectively, compared to its 2022 production guidance of 258,000 to 282,000 tonnes of copper and 153,000 to 163,000 oz. of gold.
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