Lundin Mining and BHP Investments Canada (BHP) have completed their joint acquisition of Filo, a mining company listed on the Toronto Stock Exchange, for C$4bn ($2.78bn).
This deal grants both companies a 50% stake in Filo and its FDS copper project in the Atacama region of Chile.
When the deal was announced in July last year, BHP made a payment of C$2bn in cash for the Filo acquisition, equating to C$33 per Filo share. Lundin Mining’s contribution features $C877.8m in cash and 94.1 million of Lundin Mining shares.
Prior to the completion of the acquisition, Lundin Mining owned 100% of the Josemaria copper project in the Vicuña district of Argentina. Now, BHP has bought a 50% stake in Josemaria from Lundin Mining for $690m.
The two companies have also established a 50:50 JV called Vicuña Corp, which includes FDS and Josemaria.
Operating independently from BHP and Lundin Mining, the JV company is responsible for managing these projects.
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By GlobalData
The close proximity of the FDS and Josemaria projects enables greater economies of scale, enhanced flexibility for staged expansions and the integration of future exploration as the district develops.
Lundin Mining president and CEO Jack Lundin said: “Thanks to the strong collaboration between BHP and Lundin Mining, today we announce the formation of the newly formed Joint Arrangement, Vicuña Corp., and now enter an exciting new chapter of growth that has the potential to transform Lundin Mining into a top-tier copper producer.
“Vicuña’s newly formed team, with support from its board that is comprised equally of both Lundin Mining and BHP representatives, will work towards several key milestones during the year.
“Vicuña is targeting a mineral resource estimate for both the Filo del Sol and Josemaria deposits within the first half of 2025. This resource estimate will form the basis of an integrated technical report, which will outline the development plan for the phased construction of the district.”
Total capital expenditure for the joint arrangement is forecast at $312m on a 100% basis for this year.
The future workplan for the JV will focus on a range of activities including FDS drilling, FDS mineral resource estimation and a Josemaria mineral resource estimation update.
It will also cover mine planning, metallurgy, hydrology wells and studies, the initiation of access road construction, and exploration at the Cumbre Verde target.
At the same time, engineering studies and trade-off analysis will be conducted in preparation for future permitting, along with the preparation of a technical report detailing an integrated project.
