Boliden acquires Lundin mines for as much as $1.45 billion

Swedish mining firm Boliden (ST:BOL) has introduced the acquisition of two mines from Lundin Mining (OTC:LUNMF). The deal, valued at as much as $1.45 billion, contains the Neves-Corvo mine in Portugal and the Zinkgruvan mine in Sweden.

Boliden’s Chief Govt Mikael Staffas expressed that the acquisition of those money stream generative mines holds sturdy industrial logic and strategic match for the corporate. Each Neves-Corvo and Zinkgruvan are underground mines that produce zinc, copper, lead, and silver and are geared up with on-site processing services.

The transaction includes an upfront money fee of $1.3 billion and extra contingent funds that might whole as much as $150 million. Boliden plans to finance this upfront fee by means of a mix of a share concern and debt.

The corporate anticipates that this acquisition may have a direct optimistic impression on earnings per share. Over the following 5 years, the mines are anticipated to contribute between $300 million and $350 million to the group’s earnings earlier than curiosity, tax, depreciation, and amortization (EBITDA).

The completion of this acquisition is projected for mid-2025, pending the required regulatory approvals.

On the opposite aspect of the deal, Lundin Mining has reported that the transaction is valued at as much as $1.52 billion, with an upfront money consideration of $1.37 billion.

This text was generated with the help of AI and reviewed by an editor. For extra data see our T&C.