“We’re happy to develop our possession in a long-life operation characterised by sturdy money move technology, additional enhancing Lundin Mining’s presence within the area and strengthening our total copper-dominant portfolio of high-quality base metallic mines,” CEO Jack Lundin mentioned within the assertion.
The manager famous that exercising the corporate’s choice early supplies important advantages to each events.
“We safe further copper manufacturing at a pretty acquisition value, whereas our companions obtain an upfront fee and retain a significant 30% fairness place in Caserones,” Lundin mentioned.
Underneath the revised settlement, the Vancouver-based miner is entitled to a yearly operator price within the type of a most popular dividend. This can improve from $21 million a 12 months to $28 million a 12 months, efficient from the beginning of 2025.
Lundin mentioned it might will initially fund the transaction from its revolving credit score facility with the intention to re-finance the quantity by growing the present $800 million time period mortgage to $1.15 billion.
Strategic asset
Caserones is predicted to churn out this 12 months 120,000 to 130,000 tonnes of copper, and a pair of,500 to three,000 tonnes of molybdenum on a 100% foundation.
The corporate not too long ago secured a allow to develop the operation’s footprint and lengthen operations by one other decade.
The mine is situated at an altitude of 4,200m to 4,600m above sea degree in Chile’s Atacama desert, simply throughout the border from Argentina’s San Juan province.
Caserones can also be shut Lundin’s Candelaria (about 160km away) and solely 20km from the miner’s Josemaría challenge in Argentina. This proximity, in response to the corporate, introduces synergies and extra financial savings by way of provide, logistics and administration methods not but mirrored within the life-of-mine plan.