Lundin Mining and BHP to Jointly Acquire Filo Corp and Form Joint Venture
Lundin Mining and BHP have announced an agreement to jointly acquire Filo Corp, the owner of the Filo del Sol project. As part of this deal, Lundin will also bring its Josemaria project into a 50/50 joint venture with BHP, according to a recent press release.
The acquisition values Filo at 33 Canadian dollars (USD 23.76) per share, totaling 4.1 billion Canadian dollars (USD 2.95 billion) for the shares not already held by Lundin and BHP. This price represents a 32.2% premium over Filo's independent 30-day volume-weighted average price through July 11 and a 12.2% premium over its closing price from the previous day.
In conjunction with acquiring Filo, Lundin will integrate its Josemaria project into the joint venture with BHP. For this contribution, BHP will pay Lundin USD 690 million.
"This strategic transaction is key to unlocking the enormous value that the Vicuña district represents. As we partner to acquire Filo del Sol, one of the world's largest undeveloped copper-gold-silver deposits, the true size of which has yet to be defined, we are very excited about the company's future and our role in the development of this region. Combined with the Josemaria project, we are now positioned to create a multi-generational mining district with significant synergies and cost savings at a scale that has the potential to be one of the largest of its kind," said Lundin Mining CEO Jack Lundin.The transaction is expected to be finalized in the first quarter of 2025.
