Lundin Mining agrees $485 million deal for copper-gold developer Josemaria Resources

Lundin Mining has announced it has reached a deal to acquire all of the issued and outstanding shares of Josemaria Resources through a plan of arrangement for approximately US$485 million.

The acquisition will give Lundin 100% ownership of the Josemaria copper-gold project located in the San Juan Province of Argentina, which the globally diversified miner described as a ‘world class’ project and ‘a unique opportunity at an advanced stage with a clear path to production’.

Josemaria Resources is already part of the Lundin Group of Companies – a portfolio of individually managed publicly traded companies comprised of top-tier natural resources projects with a long history of success in creating stakeholder value.

The Lundin family has a 30-year track record of successfully developing mutually beneficial relationships in San Juan and Catamarca provinces of Argentina.

“With Josemaria, Lundin Mining positions itself as a major copper producer with a diversified portfolio of high-quality, long-life base metal assets,” the company said in a statement today.

Once in production, the feasibility stage Josemaria project is expected to produce an average 131,000 tonnes of copper, 224,000 ounces of gold and 1 million ounces of silver over a 19-year mine life, at an average total cash cost of US$1.55 per pound of copper equivalent.

TSX-listed Josemaria submitted the environmental and social impact assessment (ESIA) for the project in the first quarter of 2021, and expects the ESIA and commercial and fiscal terms to be finalised next year, giving a project timeline of five years to commercial production.

“The addition of Josemaria will elevate Lundin Mining’s position to a major base metals producer with high-quality, low-cost copper exposure,” said Lundin president and CEO Peter Rockandel.