Lundin Mining, Together With Tenke Partners, to Acquire

Lundin Mining, Together With Tenke Partners, to Acquire Kokkola
Cobalt Operations in Finland 
TORONTO, ONTARIO -- (Marketwire) -- 01/21/13 -- Lundin Mining
Corporation (TSX:LUN)(OMX:LUMI) ("Lundin Mining" or the "Company") is
pleased to announce that it has through a newly formed joint venture
entity entered into a definitive agreement with OM Group, Inc.
(NYSE:OMG) to acquire a large scale cobalt chemical refinery located
in Kokkola, Finland, and the related sales and marketing business
(collectively "Kokkola"). The acquisition will provide direct
end-market access for the cobalt hydroxide production from Tenke
Fungurume copper/cobalt mine ("Tenke"). Lundin Mining will hold an
effective 24 percent ownership interest in the joint venture, with
Freeport-McMoran Copper & Gold Inc. ("Freeport") (NYSE:FCX) holding
an effective 56 percent ownership interest and acting as operator of
the joint venture, and La Generale des Carrieres et des Mines
(Gecamines), the Congolese state mining company, holding a 20 percent
interest. Under the terms of the agreement, initial consideration of
US$325 million, on a 100% basis, (subject to customary working
capital adjustments) will be paid at closing, with the potential for
additional consideration of up to US$110 million payable over a
period of three years, contingent upon the achievement of
revenue-based performance targets. The acquisition is subject to
customary closing conditions, including required regulatory
approvals, and is expected to close in the second quarter of 2013. 
Lundin Mining and Freeport will together fund the initial acquisition
costs on a 30/70% basis, which amounts will be repaid in full prior
to any distributions. Accordingly, the Company will pay US$97.5
million (subject to customary working capital adjustments) towards
the initial purchase consideration and up to US$33 million over a
three year period in contingent payments to satisfy its 30% share of
the total purchase consideration. 
Commenting on the transaction, Mr. Paul Conibear, President and CEO
of Lundin Mining said, "The acquisition of Kokkola will enable
immediate entry and vertical value-added integration to the refined
cobalt market and will ensure that all of the cobalt product from
Tenke can be processed and sold in a competitive market. We are
fortunate to be acquiring a market leader in the cobalt chemical
business with a fully operating and staffed refining operation in
Finland and significant global sales presence. We are pleased to be
extending our partnership with Freeport and Gecamines further into
the cobalt market." 
About Kokkola 
Kokkola, located on the Baltic Sea in Kokkola, Finland, processes
unrefined cobalt and related metals and manufactures advanced
inorganic products for use in a variety of applications in
fast-growing end use markets. Kokkola is the world's largest supplier
of cobalt chemicals and powders for use in: 


 
--  batteries: cobalt raw materials and precursors for rechargeable
    batteries 
--  chemicals & ceramics: cobalt inorganic materials for a variety of
    chemical, catalyst, blue pigment and other applications 
--  powder metallurgy: cobalt fine powders for the hard metal and diamond
    tooling industries

 
Kokkola has been in operation since 1968 and comes with an
experienced management team, over 400 employees, and a global sales
and marketing footprint that services approximately 500 customers in
over 50 countries in Asia, Europe and the Americas. Kokkola has
strong growth prospects and a track-record of strong revenue and cash
flow generation despite commodity price volatility. 
About Lundin Mining 
Lundin Mining Corporation is a diversified Canadian base metals
mining company with operations in Portugal, Sweden, Spain and
Ireland, producing copper, zinc, lead and nickel. In addition, Lundin
Mining holds a 24% equity stake in the world-class Tenke Fungurume
copper/cobalt mine in the Democratic Republic of Congo. 
On Behalf of the Board, 
Paul Conibear, President and CEO 
Forward Looking Statements 
Certain of the statements made and information contained herein is
"forward-looking information" within the meaning of the Ontario
Securities Act. Forward-looking statements are subject to a variety
of risks and uncertainties which could cause actual events or results
to differ from those reflected in the forward-looking statements,
including, without limitation, risks and uncertainties relating to
foreign currency fluctuations; risks inherent in mining including
environmental hazards, industrial accidents, unusual or unexpected
geological formations, ground control problems and flooding; risks
associated with the estimation of mineral resources and reserves and
the geology, grade and continuity of mineral deposits; the
possibility that future exploration, development or mining results
will not be consistent with the Company's expectations; the potential
for and effects of labour disputes or other unanticipated
difficulties with or shortages of labour or interruptions in
production; actual ore mined varying from estimates of grade,
tonnage, dilution and metallurgical and other characteristics; the
inherent uncertainty of production and cost estimates and the
potential for unexpected costs and expenses, commodity price
fluctuations; uncertain political and economic environments; changes
in laws or policies, foreign taxation, delays or the inability to
obtain necessary governmental permits; and other risks and
uncertainties, including those described under Risk Factors Relating
to the Company's Business in the Company's Annual Information Form
and in each management discussion and analysis. Forward-looking
information is in addition based on various assumptions including,
without limitation, the expectations and beliefs of management, the
assumed long term price of copper, nickel, lead and zinc; that the
Company can access financing, appropriate equipment and sufficient
labour and that the political environment where the Company operates
will continue to support the development and operation of mining
projects. Should one or more of these risks and uncertainties
materialize, or should underlying assumptions prove incorrect, actual
results may vary materially from those described in forward-looking
statements. Accordingly, readers are advised not to place undue
reliance on forward-looking statements.
Contacts:
Lundin Mining Corporation
Sophia Shane
Investor Relations North America
+1-604-689-7842 
Lundin Mining Corporation
John Miniotis
Senior Business Analyst
+1-416-342-5565 
Lundin Mining Corporation
Robert Eriksson
Investor Relations Sweden
+46 8 545 015 50
 
 
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