Sightful Invest
  • Business
  • Investing
  • Politics
  • Stock
Top Posts
Starmer says UK to recognize Palestinian state if...
‘Critical’ closed-door congressional huddle focuses on growing antisemitism...
Trump’s CDC pick confirmed—but her pro-vaccine stance may...
Trump pick Emil Bove confirmed as federal judge...
From Gaza to Greenland, Macron breaks with Trump...
Schumer calls on FBI to conduct counterintelligence threat...
Biden ‘Politburo’ member Steve Ricchetti to appear before...
Trump looks to skip G20 summit in South...
Backlash against Sydney Sweeney ‘jeans/genes’ ad gets mocked...
Biden ‘Politburo’ member Steve Ricchetti appears before House...
  • Business
  • Investing
  • Politics
  • Stock

Sightful Invest

Investing

Lundin Mining to Divest Neves-Corvo and Zinkgruvan Operations for US$1.52 Billion

by admin December 10, 2024
December 10, 2024
Lundin Mining to Divest Neves-Corvo and Zinkgruvan Operations for US$1.52 Billion

Lundin Mining (TSX:LUN,OTC Pink:LUNMF) has entered a definitive agreement to sell its Neves-Corvo operation in Portugal and Zinkgruvan operation in Sweden to Boliden (STO:BOL) for up to US$1.52 billion.

The sale, announced by the company on Monday (December 9), will see Boliden acquire full ownership of Somincor, the company operating Neves-Corvo, as well as Zinkgruvan Mining Aktiebolag and its associated entities.

Lundin expects to receive upfront cash consideration of US$1.37 billion at closing, based on financial conditions as of August 31, 2024. Interest will accrue at 5 percent annually until the closing date.

It will also receive up to US$150 million in contingent cash consideration once certain conditions are satisfied.

The contingent payments for the Neves-Corvo operation are linked to copper and zinc prices exceeding US$4.50 per pound and US$1.30 per pound, respectively, between 2025 and 2027.

For Zinkgruvan, the contingent payments are tied to zinc prices surpassing US$1.40 per pound during 2025 and 2026, provided that annual zinc production meets a minimum threshold of 135 million pounds.

Payments are capped at US$25 million annually, with a total maximum of US$50 million. Incremental revenue exceeding these thresholds will result in payments to Lundin capped at US$100 million over the period.

Lundin intends to use the proceeds to strengthen its balance sheet and prioritize its growth in the Vicuña District in South America. The company currently has operations and development projects in Argentina, Brazil, Chile and the US.

“It is an opportune time to optimize our portfolio through this divestiture as we drive towards becoming a top-tier copper-dominant mining company,” said CEO Jack Lundin in a press release.

Neves-Corvo and Zinkgruvan have been significant contributors to Lundin Mining’s growth as a multi-asset base metals producer. According to Lundin, the transition to Boliden will provide continuity for local stakeholders and employees.

Both companies anticipate completing the transaction by mid-2025.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

previous post
Black Swans, White Swans and Trump’s Clash with the Fed
next post
Capital Raising and QSM Completion Update

You may also like

John Rubino: Gold, Silver, Miners — How to...

August 23, 2024

Rapid Increases Land Holding by 26 X

June 11, 2025

Precious Metals & Critical Minerals Hybrid Investor Conference:...

May 26, 2025

Element79 Gold Announces Notice of Force Majeure on...

June 28, 2025

What Was the Highest Price for Gold?

January 31, 2025

Satellite Imagery and Gold Exploration (Updated 2024)

September 12, 2024

Quimbaya Gold & Independence Drilling Secure 4,000m Drill...

March 3, 2025

Stagflation Looms: Why Economists Are Warning of a...

April 28, 2025

Trump Revives Tariff Threats Against EU and China,...

January 24, 2025

3 Best-performing Canadian Pharma Stocks of 2024

August 14, 2024

Recent Posts

  • Starmer says UK to recognize Palestinian state if Israel doesn’t agree to ceasefire, Hamas must ‘disarm’
  • ‘Critical’ closed-door congressional huddle focuses on growing antisemitism in US, Mamdani’s rise
  • Trump’s CDC pick confirmed—but her pro-vaccine stance may clash with RFK Jr.’s agenda
  • Trump pick Emil Bove confirmed as federal judge after furious Democrat walkout, whistleblower complaints
  • From Gaza to Greenland, Macron breaks with Trump on global flashpoints

    Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Categories

    • Business (845)
    • Investing (2,651)
    • Politics (3,267)
    • Stock (4)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: sightfulinvest.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 Sightful Invest. All Rights Reserved.