The deal allows Lundin Mining to acquire 100% of the Josemaria copper-gold project in the San Juan Province
Canada-based Lundin Mining has signed an agreement to acquire Josemaria Resources in a deal valued at around C$625m ($485m).
The deal allows Lundin Mining to acquire 100% of the Josemaria copper-gold project in the San Juan Province of Argentina.
The acquisition is expected to enable the company to position itself as a major copper producer with a diversified portfolio of long-life base metal assets.
Lundin Mining president and CEO Peter Rockandel said: “Josemaria is a world-class copper-gold project that has many characteristics which makes it the ideal project, at the right time, for Lundin Mining to advance in the next phase of our growth.
“Building on our strengthened technical expertise, leveraging our financial strength, and drawing on Josemaria Resources’ in-country knowledge, we believe this opportunity will create meaningful value for all stakeholders.”
For the first three years, the Josemaria project is anticipated to produce an average of 166,000t of copper, 331,000oz of gold and 1.2 million oz of silver per annum.
The mine, which is planned to be developed as a large-scale open-pit, is expected to produce 31,000t of copper, 224,000 oz of gold and 1.0 million oz of silver, over a 19-year mine life.
In November last year, a feasibility study was completed on the copper-gold project.
Once the deal concludes, Lundin Mining aims to further assess and begin additional study work on the project development timeline, capital expenditure estimates, and economic estimates.
Subject to regulatory approvals, the transaction is expected to be completed in the second quarter of 2022.
Lundin Mining stated that the Josemaria deposit is classified as a porphyry copper-gold system.
With a larger alteration footprint of up to 4km north-south by 2km east-west, the deposit area measures around 1,500m north-south by around 1,000m east-west and 600 to 700m vertically from surface.