Boliden AB (BDNNF.PK), Swedish miner, on Monday inked a deal with Lundin Mining Corporation (LMC,LUN.TO), a Canadian mining firm, to acquire the Neves-Corvo mine in Portugal and the Zinkgruvan mine in Sweden for upfront cash consideration of $1.300 billion, with contingent payments of up to $150 million, on a cash and debt-free basis.
The upfront will be fully financed through a bridge loan provided by BNP PARIBAS, RBC Capital Markets, and Skandinaviska Enskilda Banken AB.
The acquisition is expected to be immediately accretive to Boliden's earnings per and contribute over 10 percent to cash EPS. The transaction, expected to be closed in the mid-2025, will boost Boliden's mine output as well as internal zinc and copper concentrate supply.
Mikael Staffas, CEO of Boliden, said: "The addition of two cash flow generative zinc and copper mines in Portugal and Sweden has a strong industrial logic as well as a strategic fit. Optimizing these well-invested units as well as developing the feed mix to our existing smelters will create short- and long-term value for both our Business Areas."
Under the terms, Boliden will buy Somincor-Sociedade Mineira de Neves-Corvo, S.A. and Zinkgruvan Mining Aktiebolag and North Atlantic Natural Resources Aktiebolag from subsidiaries of Lundin.
Post transaction, zinc and copper concentrate output will increase from 35 percent to 70 percent of zinc smelting capacity and 30 percent to 40 percent of copper smelting capacity.
In addition, it will boost production of metals in concentrate in mines business area, by 95 percent for zinc and 43 percent for copper.
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