BHP and Lundin Mining have announced a major joint acquisition of Filo Corp., a Toronto Stock Exchange-listed company, through a Canadian plan of arrangement.
The acquisition, valued at approximately $C4.1 billion, represents a 32.2 per cent premium over the company’s 30-day volume-weighted average price. Upon completion, BHP and Lundin Mining will each hold a 50 per cent stake in Filo Corp. and its Filo del Sol (FDS) copper project in Chile.
Following the acquisition, the companies will form a 50:50 joint venture encompassing the FDS and Josemaria project in the Vicuña district of Argentina. Lundin Mining currently owns the entire Josemaria project.
BHP chief executive officer Mike Henry said this acquisition builds on the company’s strategy to acquire more copper projects.
“The proposed transaction builds on a multi-year relationship between BHP and the Lundin Group of companies through which we have developed a strong understanding of the resource potential of the Vicuña district and the possible pathways for development of the Filo del Sol and Josemaria projects,” he said.
“This transaction aligns with BHP’s strategy to acquire attractive early-stage copper projects and enter into strategic partnerships with parties where complementary skills and experience can deliver long-term economic and social value.”
Henry said the joint venture will be of massive benefit not just for BHP but for the countries it mines in.
“The joint venture with Lundin Mining will advance the development of the Vicuña district, which offers the potential to become a major contributor to the economy of Argentina for decades to come,” he said.
“At the same time, by partnering with Lundin Mining, BHP is continuing to invest in the growth of a robust mining sector in Canada.”
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