Industria
Lundin Mining Completes Joint Acquisition of Filo with BHP and 50% Sale of Josemaria to Form Vicuña Corp.
Vicuña will create a long-term strategic alliance between Lundin Mining and BHP to jointly develop an emerging copper district with the potential to support a globally ranked mining complex. The proximity of the FDS and Josemaria projects allows for greater economies of scale and increased optionality for staged expansions, as well as the incorporation of future exploration as the district matures.
"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.
"The district represents an opportunity to deliver on the world's growing copper needs in a meaningful way, both in terms of scale and operational excellence. The Joint Arrangement is committed to applying international industry standards to each facet of the business, from innovation in technology to the commitment of sustainability and capacity building."
The Filo Acquisition was approved by Filo shareholders on September 26, 2024 and the final court order for the plan of arrangement was subsequently obtained.
The total consideration for the Filo Acquisition was approximately C$4.0 billion , excluding the Filo shares already held by Lundin Mining and BHP respectively.
Lundin Mining's share of the consideration for the Filo Acquisition was approximately C$877.8 million in cash and 94.1 million Lundin Mining Shares to Filo shareholders, along with its existing 1.7% interest in Filo (prior to completion). The issuance of 94.1 million Lundin Mining shares to the Filo shareholders, represents a dilution to the existing shareholders of Lundin Mining of approximately 11% based on the issued and outstanding shares of the Company as of December 31, 2024 . BHP will pay a cash consideration for its interest in Filo of C$2.0 billion at C$33.00 per Filo share, along with its existing 7.0% interest in Filo (prior to completion).
The Joint Arrangement is governed by a joint venture shareholders' agreement. Vicuña will be the operator, acting independently from Lundin Mining and BHP, and will be responsible for the development, operation and management of the projects.
Lundin Mining and BHP have equal voting rights on the Board of Vicuña that will govern the Joint Arrangement. The Board will be comprised of Jack Lundin (President & CEO Lundin Mining ), Teitur Poulsen (EVP & CFO Lundin Mining ), Brandon Craig (President Americas BHP), and Carlos Ramirez (VP Vicuña JV BHP). Carlos Ramirez has been appointed as Chair of the Board of Vicuña Corp.
Vicuña will be led by Dave Dicaire , the former Executive Vice President, Josemaria Project for Lundin Mining. The employees from the Josemaria project team and FDS project team are expected to transition over to maintain continuity and knowledge of the projects.
Dave Dicaire has over 40 years of mining, engineering and construction experience gained on a variety of global projects leading both the Owners and Engineering, Procurement, and Construction Management (EPCM) teams and has led the Josemaria project as Executive Vice President since August of 2022. His experience covers all facets of project management across several types of mining projects ranging from managing pre-feasibility studies to large EPC/EPCM projects. Dave's previous roles include Vice President, Projects at Lundin Gold where he oversaw construction of the Fruta del Norte project in Ecuador and prior to that Project Director at Freeport-McMoRan for the highly successful multi-billion-dollar Cerro Verde Expansion Project in Peru . Before moving to Freeport McMoRan, he was the General Manager, Project Development for South America for Xstrata Copper based in Santiago, Chile .
The development of the Vicuña District envisions an integrated project plan, incorporating both the Filo del Sol and Josemaria projects through a phased development strategy.
Capital expenditures for the Joint Arrangement are forecast to total $312 million on a 100% basis for 2025. The workplan will focus on FDS drilling, FDS mineral resource estimation, Josemaria mineral resource estimation update, mine planning, metallurgy, hydrology wells and studies, commencement of access road construction, and exploration at the Cumbre Verde target. In parallel, engineering studies and trade off analysis will be completed in preparation for future permitting and a technical report outlining an integrated project.
Drilling is currently underway at FDS and Cumbre Verde and will continue throughout the year. The drill program at FDS will focus on resource growth with multiple step-out targets in all directions from zones of known mineralization, including both the Bonita and Aurora Zones along with infill drilling to support an initial sulphide mineral resource estimate. Drilling at Cumbre Verde will follow up on the initial results from last year and target the same mineralized system and structures discovered to the north of the project.
The advancement of Vicuña aims to line up with the application window of the Incentive Regime for Large Investments ("RIGI") in Argentina . The incentive regime provides a clear fiscal stability framework for the overall operation during the initial construction period and future phased expansions.
Lundin Mining is a diversified Canadian base metals mining company with operations or projects in Argentina , Brazil , Chile , and the United States of America , primarily producing copper, gold and nickel. In December 2024 the Company announced the sale of its European assets to Boliden. The transaction is expected to close in mid-2025 subject to customary conditions and regulatory approvals.
The information was submitted for publication, through the agency of the contact persons set out below on January 15, 2025 at 9:30 PDT .
For further information, please contact: Stephen Williams , Vice President, Investor Relations: +1 604 806 3074, Robert Eriksson , Investor Relations Sweden: +46 8 440 54 50
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