The Board of IronRidge Resources Limited, the African focussed minerals exploration company,...
Canadian miner to acquire Brazilian copper-gold asset for $800M
Canada’s Lundin Mining has agreed to pur-chase the Chapada copper-gold mine in Brazil from Yamana Gold under a deal worth some $800 million.
"In addition, Yamana will retain a 2.0% net smelter return (NSR) roy-alty on future gold production from the Suruca gold deposit and re-ceive contingent consideration of up to US$125 million over five years if certain gold price thresholds are met and contingent consideration of US$100 million on potential construction of a pyrite roaster," Lundin Mining said in a statement.
The miner says Chapada has the potential to sustain production in the range of 68,000 to 72,500 tonnes of copper and 100,000 to 110,000 oz of gold per year under an expansion scenario through at least 2034.
Lundin Mining says it runs operations in Chile, the US, Portugal and Sweden, primarily producing copper, zinc and nickel. The company also has an indirect 24% equity stake in the Freeport Cobalt Oy busi-ness which runs a cobalt refinery in Finland’s Kokkola.