Lundin Mining Announces Closing of Acquisition of Eagle Mine and Construction
TORONTO, ONTARIO -- (Marketwired) -- 07/17/13 -- Lundin Mining
Corporation (TSX:LUN)(OMX:LUMI) ("Lundin Mining" or the "Company") is
pleased to announce the closing of the acquisition of the high grade
Eagle nickel/copper mine from Rio Tinto Nickel Company, a subsidiary
of Rio Tinto plc ("Rio Tinto"), previously announced on June 12,
Total cash consideration paid at closing by the Company was
approximately US$315 million, consisting of a US$250 million purchase
amount plus project expenditures from January 1, 2013 until
transaction closing of US$65 million, subject to minor adjustments to
reflect actual project expenses. The acquisition has been entirely
funded from Lundin Mining's current net cash balance and its existing
$350 million revolving credit facility. The purchase price reflects
project expenditures from Jan 1, 2013 to closing being lower than
previously anticipated due to an earlier than expected closing date.
Paul Conibear, President and CEO. commented, "We are very pleased to
close the acquisition of this high-quality asset early, and
especially pleased to see the high level of activity on site already
as construction ramps up."
Eagle Mine - Project Status Update
The Eagle Mine is located in Marquette County in the Upper Peninsula
of Michigan. Project construction is more than 50% complete with
initial production expected to commence in Q4 2014.
The Company is pleased to announce that project ramp-up is proceeding
well with construction on the mill and mine sites. The following
highlights summarize the latest project developments:
-- Earthworks, concrete installation and steel erection are underway at the
mill site. The contract for the mine site coarse ore storage has been
awarded and the contractor mobilized.
-- All vendors are mobilized and new delivery dates are being finalized.
Most equipment has been ordered and is expected to be delivered to site
prior to year end.
-- Approximately 100 construction personnel are now on site, a peak of
approximately 350 construction personnel is expected later this year.
-- Eagle has approximately 70 people on staff and recruiting is underway to
objective of ramping up to approximately 220 staff in Q3
-- Opportunities for schedule acceleration are being explored.
As previously announced, the Company expects to file its National
Instrument 43-101 compliant technical report by July 26, 2013.
About Lundin Mining
Lundin Mining Corporation is a diversified base metals mining company
with operations and projects in Portugal, Sweden, Spain and the U.S.A
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 and in the
Freeport Cobalt Oy business, which includes the cobalt refinery
located in Kokkola, Finland.
On Behalf of the Board,
Paul Conibear, President and CEO
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
the estimated cash costs, the timing and amount of production from
the Eagle Mine, the cost estimates for the Eagle Mine, 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.
Lundin Mining Corporation
Investor Relations North America
Lundin Mining Corporation
Senior Business Analyst
Lundin Mining Corporation
Investor Relations Sweden
+46 8 545 015 50
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